Hobart suburbs where median home prices are down

In PropTrack’s new quarterly home values report, units in Lindisfarne, alongside houses in Lutana, New Town, Rosetta, Sandy Bay and North Hobart, recorded lower median prices in March than in the previous quarter.

However, the downshift might not be enough to change a buyer’s or seller’s property plans, with the largest reductions ranging from just 1.2% to 2.6%.

Ten more suburbs recorded quarterly declines of less than 1% in their median house price, including Bellerive, Blackmans Bay, Glenorchy and Goodwood.

Of the areas with sufficient data, PropTrack found growth suburbs outstripped declining areas by a mile, although many only recorded a tiny uptick.

Thirty-six of 51 suburbs showed house price growth, while 22 of 26 units posted pricing gains. Three suburbs sat flat with no pricing change.

The unit sector had two standout performers: West Hobart with 7.6% growth over the three-month period and Battery Point with 8.9% growth.

For houses, the best growth results were recorded in Clarendon Vale (5.4%), Mornington and Sandford (both 3%), and South Hobart at 2.9%.

'Is your city leading Australia's home price growth': youtube.com/mortgagechoice

REA Group executive manager of economics Angus Moore, described Hobart as a “sluggish” and “softer” market over the past two years, following on from strong growth during and prior to the pandemic.

“Recently, without setting the world on fire, it has started to pick back up again,” he said.“On average, Hobart home prices are up compared to this time last year.

“We are expecting to see some price growth this year off the back of lower interest rates.”

LJ Hooker Pinnacle Property partner Alison Rogers said young buyers in the $600,000 have been the most active part of the market, particularly in Hobart’s northern suburbs.

She said inquiry levels from investors and interstate-based purchasers had been rising since late last year.

“In the last eight to ten weeks, buyer confidence has returned,” Mrs Rogers said. “This translates into homes selling in a shorter amount of time. It also seems that there are more properties hitting the market.”

Mrs Roger said the year’s first interest rate cut helped some buyers take the plunge.

“People that had been waiting, it helped them take that first step,” she said. “However, even with the sentiment being that there will be more cuts, federal elections tend to slow the property market. Not just in Hobart, but everywhere.

“Some might see the opportunity there, with fewer buyers to compete against when trying to secure their next home.”

Mrs Rogers said another common trend in the market is that people are assessing their property debt.

“Some will downsize as a result of this, or sell a second home."

This article first appeared on realestate.com.au and has been republished with permission.