Despite being Australia’s smallest state, Hobart has not fallen short throughout the housing boom. Alas, it has actually been a top performer - with a massive 120% median house price increase - over the past seven years.
Simon Pressley, Propertyology’s Head of Research, said Tasmanian real estate has become incredibly treasured and hard to come by.
“It has easily been the best-performed market over the past seven years wherein our buyer’s agents have purchased 200 properties in Hobart, Launceston and Burnie,” Mr Pressley told Savings.com.au.
Hobart also takes out first place in terms of property price growth over the 12 months to November 30, rising more than 27% according to CoreLogic. And Mr Pressley said he predicts greater Hobart will continue to experience further ‘strong’ growth over the next couple of years - “quite opposite to recent forecasts by the misery-guts banks and economists.”
“A median house price increase of circa 40% over the next two years will not surprise us in the slightest,” he said.
“Real estate in Australia’s twelfth largest city is now so scarce that there’s currently only 144 dwellings advertised for rent, and the volume of resale housing supply is 70% less than five years ago,” Mr Pressley told Savings.com.au.
“Hobart is the jewels in the crown of Australian real estate.”
Mr Pressley also referenced the demand side of things, citing that Tasmania has topped CommSec’s State of the State’s economic scorecard for the past eight consecutive quarters.
“The infrastructure pipeline has reached a new record, internal migration is due to accelerate with borders re-opening, tourism is about to take off again, and household balance sheets are flush with liquidity,” he said.
So, which Hobart suburbs could be set for property price booms in 2022? A couple of experts named their top tips:
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Berriedale
Dr Diaswati Mardiasmo, PRD chief economist, named Berriedale as one to watch on the property radar.
“First home buyers are encouraged to take this opportunity to enter the market as the suburb median price is well below Hobart Metro’s median price of $740,000,” Dr Mardiasmo told Savings.com.au.
“Berriedale offers a great mix of greenery and waterfront lifestyle, and it’s home to one of Hobart’s most talked about attractions: MONA (Museum of Old and New Art).”
The suburb is 9.5 kilometres out from Hobart and has a median house price of $480,000 in the September quarter of 2021 according to PRD.
Howrah
Howrah is a middle-ring suburb - named by both Dr Mardiasmo and Mr Pressley as a top pick - recording a median house price of $705,000 for the third quarter according to PRD.
“With its spectacular views and coastal lifestyle, Howrah is a beautiful, self-contained community for lovers of walking and cycling,” Dr Mardiasmo said.
“Home to Howrah Beach, the suburb is also located within close proximity to Blundstone Arena, Bellerive Beach, and Hobart International Airport.”
Oakdowns
A little further out than the first two suburbs, Oakdowns is 10 kilometres east of Hobart with a median house price of $595,000 according to PRD’s latest data.
“Despite being a small community, Oakdowns has the benefits of proximity to numerous nearby beaches, green spaces, and nearby amenities of its neighbouring suburb Rokeby,” Dr Mardiasmo said.
“Furthermore, Oakdowns provides investors with stronger-than-average rental yields (5.1%) in the Hobart Metro area.”
Rokeby
Rokeby sits 7.5 kilometres from Hobart and hosts an abundance of schools, shops, and amenities.
“(This is) while offering an attractive median house price of $480,000 for the September quarter of 2021,” Dr Mardiasmo said.
“Rokeby offers young families a great starting point to get their foot on the property ladder while still offering higher-than-average rental yields for investors (5.1%).
Glenorchy
Glenorchy’s median house price of $503,000 according to PRD means it sits ‘well below’ Hobart Metro’s median.
This is still while being a ‘middle-ring suburb’ - sitting six kilometres from the city - leading both Dr Mardiasmo and Mr Pressley to name it as a suburb with price growth potential in 2022.
“Glenorchy is a friendly, established suburb that offers great affordability that is fundamental to wellbeing,” Dr Mardiasmo said.
“Glenorchy hosts the Tasmanian Transport Museum, Hobart Showgrounds and Elwick Racecourse among a vast array of essential amenities.”
Kingston
Another suburb recommended by Dr Mardiasmo and Mr Pressley, Kingston is also located six kilometres from Hobart and recorded a median house price of $674,000 in the third quarter of 2021 according to PRD.
“Kingston is the only suburb South of Hobart on the list and has seen an abundance of development in the area through the back half of 2021,” Dr Mardiasmo said.
“Hosting an abundance of shops, amenities, green spaces, and transport back to Hobart; Kingston is a great place for young families to get their foot on the housing ladder.”
Image by Spencer Chow on Unsplash
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