Hobart has been one of those cities in Australia to experience some extremely strong price growth over the past 24 months, but when looking further back on historical data, it is evident Hobart’s median house price has been increasing at a phenomenal rate over the past 7 years. Over this 7-year time frame, median house prices in Hobart have increased 117 per cent.
When analysing the more recent data, Hobart has remained relatively unscathed over the course of the pandemic, making it an ideal location for people to escape the difficult times faced across the world. House prices over the past 12 months have increased 27.6 per cent, with an increase of 1.2 per cent for the month to 31st of January 2021, according to CoreLogic’s Home Property Value Index.
There have been four factors that helped to drive demand and higher prices in Hobart over 2021, including, record low-interest rates, a strong local economy, a desirable place to live from a lifestyle perspective, and the city has been for the most part untouched by the pandemic.
Whilst we expect Hobart will continue to see growth this year, it is to be expected that growth will not be near the levels experienced in 2021, with many analysts predicting Tasmania is due a correction.
There is still an abundance of reasons as to why Hobart makes a strong investment, as borders are reopened and restrictions gradually eased across the country, we will begin to see international visitors and students return to Tasmania. Furthermore, there is an extensive pipeline of major infrastructure projects planned for the island, with £3.1 billion to be spent over the next 2 years.
If you would like to discuss the Australian property market in more detail, please reach out to the team to organise a time to have a conversation about how Wealthi can help you build a successful property portfolio.
Chris Hynes is Wealthi’s Global Research Analyst, Based in London