BIGGEST The streak of growth in Hobart’s property value has seen it lead the nation over the past three and a half years.
In its new Pain & Gain report, CoreLogic revealed that the southernmost capital has recorded Australia’s highest rate of profitability for 14 consecutive quarters.
While all of Hobart was glowing in the report, three counties recorded surprising results.
In the December quarter, all homes sold in two LGAs – Glenorchy and Kingborough – made a profit compared to the previous time when these properties were sold.
And in the city, the Hobart LGA passed a milestone with the average profit from these resold homes crossing the half-million mark to hit $515,000. In the middle of last year, it was US$ 443,500.
Kingborough and Clarence posted average December earnings above $400,000 for the first time.
CoreLogic’s head of research, Eliza Owen, found that in greater Hobart, 98.3% of homes sold at a profit.
“Hobart also had the third highest average capital resale gain at $395,000,” she said.
“That was second only to Sydney and Melbourne.”
Harcourts Signature property representative Mark Brudenell said that even with some uncertainty in the market, Hobart sellers were in a strong position.
“I think we will just have market stability going forward,” he said.
“The storm of the federal election and the change in RBA rates just freaked people out a little – but this will all settle down.
“It is still a great time to sell as there is little supply and home loan rates are still very low compared to history.
“Research remains strong in our area.”
In Hobart’s large LGAs, Brighton recorded 95.4% of sales with an average profit of $250,500; Clarence tipped the balance by 99.5% and $400,000; 97.8 percent of Derwent Valley homes made an average profit of $250,000; Average profits for Glenorchy and Kingborough were $325,000 and $413,000; 95.6 percent of Hobart LGA sales made a profit; and in Sorell 96.8 percent were in the highest column with a median of $355,000.
Overall, there were over $338 million in properties sold in the three-month period, led by Hobart (over 83 million), Clarence (over 80 million) and Glenorchy (over $61 million).
Owen said the transformation of Hobart’s housing market came, in part, from a thriving tourism sector in the 2010s.
“While this has been disrupted by Covid, housing values have increased by an extraordinary 34% between March 2020 and December 2021,” she said.
“There are now significant accessibility restrictions in Hobart, which has led to a spillover in demand for Tasmanian regional housing.
“The Tasmanian market could reach a peak in resale profitability rate throughout 2022.”
SALES WITH GROSS PROFIT, DECEMBER 21 QUARTER
Profit Sales Percentage, Retention Period, Median Profit, Total Profit Amount
Brighton 95.4% 6.3 $250,500 $17,033,776
Clarence 99.5% 8.6 $400,000 $80,888,254
Derwent Valley 97.8% 7.6 $250,000 $13,669,575
Glenorchy 100.0% 8.4 $ 325,000 $ 61,037,794
Hobart 95.6% 9.4 $515,000 $83,520,674
kingborough 100.0% 8.4 $ 431,000 $ 58,223,999
Sister 96.8% 9.4 $355,000 $24,331,781