Hobart is the fourth-strongest property market in the world

Australia’s property markets saw some of their strongest-ever growth over the 2021 calendar year, with the typical home value jumping by over 22.1% according to CoreLogic’s figures.

But while each capital city saw impressive annual price surges, Hobart finished the year in pole position after home values in the city grew by more than 33%.

That formidable growth didn’t just rank Hobart as Australia’s star performer. It also

catapulted it into fourth position on Knight Frank’s latest Global Residential Cities Index.

The index, which tracks property prices across 150 major cities worldwide, had Hobart coming in just behind Istanbul (63.2%), Izmir (58.5%) and Ankara (55.9%).

So what are some of the factors driving Hobart’s strong showing in the global index?

Hobart has got it all

Thanks to its stunning scenery, flourishing local economy and the relaxed lifestyle on offer, Hobart has long been a popular location for Australians looking for a sea change.

But then came the rise of remote working. With Hobart a mere one-hour flight to Melbourne and 1.5 hours to Sydney, it’s no wonder many lockdown-weary Aussies were tempted across the Bass Strait.

Couple that strong buyer demand with a persistently low supply of property, and it’s no wonder prices have skyrocketed since the pandemic.

Not just a one-trick pony

But Hobart’s property market was delivering strong capital growth even before the pandemic. According to the most recent Australian Bureau of Statistics figures, the median house price was $745,000 in the December 2021 quarter. That’s a stunning:

90.1% increase over five years
120.7% increase over ten years

That growth rate has taken Hobart from being one of the cheapest cities in Australia to one of the country’s top performers.

And while past performance doesn’t always indicate future performance, the Real Estate Institute of Tasmania hasrepeatedly warned that the state isn’t building enough homes to keep up with demand – likely putting more upwards pressure on prices.

What’s more, there’s never been a better time to invest in the city thanks to:

Tasmania’s thriving economy
House and unit rents at record highs in March at $520 and $450 per week respectively
An incredibly tight vacancy rate of 0.3% over March

Buyers Agents Tasmania can help you buy a quality home at a fair price. To discuss your options, call 0439 639 508, email [email protected] or fill in this online form.

Remember, this article does not constitute financial or legal advice. Please consult your professional financial and legal advisors before making any decisions for yourself.