The market in Hobart, Tasmania is proving to be the dark horse of residential real estate in Australia.
Besting both Sydney and Melbourne, Hobart’s housing and rental prices have soared in 2018, according to Mansion Global. Data released by Knight Frank shows home prices rose 14.1 percent year-over-year in the first quarter, while CoreLogic pegged rents increasing at 10.7 percent for houses and 13.6 percent for apartments.
Analysts say demand is being caused by low levels of supply, record migration within Australia and Tasmania’s improving economy. It also helps that even in Hobart’s red hot market, prices are comparatively cheap.
“Relatively inexpensive housing prices are another factor,” CoreLogic Asia Pacific’s Tim Lawless told Mansion Global. “With a median house value of US$331,000, Hobart house values are less than half of Sydney’s at US$750,000.” [MG]—Erin Hudson