By Herron Todd White
Hobart Property Update
In general terms, the Hobart residential market has remained stable through these uncertain times allowing local residents the ability to purchase their first home without interstate competition. In saying that, there are still many properties receiving multiple offers.
The price point for multiple offers appears to be in the $400,000 to $600,000 range.
Local real estate agents have indicated there is a plethora of interstate purchasers waiting for the Tasmanian border restrictions to be lifted to purchase residential property for short to mediumterm investment with the option to move to the Island State later on down the track.
The investor market seems to have slowed somewhat, due to reduced activity in the rental market with reducing demand for rentals and a lower return on investment. This is primarily due to the Premier extending the closure of the borders which was initially from 24 July for an additional seven days (at the time of preparing this review). Hobart is highly dependent on the tourism and hospitality industry and the international student market which has suffered significantly in the past three months.
The restrictions may be extended for in excess of an additional two to three weeks, which seems likely given the situation in Victoria.
Established dwellings with the potential to subdivide are still popular choices with developers as vacant land prices continue to increase with the reintroduction of the First Home Builders Grant. The federal government’s additional contribution of $25,000 for new home construction will further fuel demand for vacant land, therefore reducing supply and putting positive price pressures on any available stock.
Generally, first home buyers are targeting the more affordable areas such as Rokeby, Oakdowns, Brighton and Austins Ferry to purchase a vacant allotment and build their first home. Prices are creeping up towards the $250,000 mark for blocks of 650 to 750 square metres.
When the borders are reopened and the hospitality and tourism industry goes back to some sort of normal, along with international students being allowed to resume studies, the short to medium term is predicted to maintain a stable level.
Rentals in areas such as Sandy Bay (which is highly dependent on student accommodation) has suffered the most on a broad scale due to the lack of demand.
All in all, the Hobart locality and surrounds by all accounts seems to be a safe place to invest for the time being, but don’t expect the market to rise like it has in the past two to three years. The market is predicted to be stable.
Speak with a Hobart Mortgage Broker today.
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.