Hobart's housing market was able to meet the expectations over the past year despite the impacts of the COVID-19 outbreak on the economy, according to Herron Todd White.
The continued support in the form of rate reductions and housing packages managed to overturn the lull between April and June, spurring activity in the region throughout the year.
"We predicted the lower socio-economic areas to level out, but this couldn’t be further from the truth with these areas outperforming higher-valued areas," said Stephan Ning Liu, property valuer at Herron Todd White.
Liu said the low-rate environment has made it cheaper to buy than rent. However, access to finance remains a challenge for most lower-income households as banks tighten their lending rules.
Still, Liu believes that the current lending conditions are spurring activity in several parts of the market, not just in the lower socio-economic areas.
For instance, there are still high-end property transactions even if property sales in excess of $1.5m have slowed since the pandemic.
Furthermore, properties with values of up to $600,000 continue to receive good demand, with multiple offers going over the asking price.
"What will 2021 bring for us in the south is anyone’s guess but it would be fair enough to predict a steady market with possible increases due to the record low interest rates, shortage of supply and many owner-occupiers and investors alike chomping at the bit to buy a safe piece of the Apple Isle property market," he said.
