On the up: Hobart housing’s strong quarter

Sandford was a standout suburb over the past three months. Picture: Supplied

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Elections don’t tend to be great news for property market growth, but they couldn’t stop Hobart’s green shoots from popping up.

Exclusive June quarter PropTrack figures show 38 out of 56 greater Hobart suburbs recorded median house price growth, despite a federal election and the announcement of a state election.

The 38 growth areas far outstripped the seven suburbs with a declining median value and the 11 that sat unchanged from the previous quarter.

Eastern Shore lifestyle suburb Sandford was the top-performing area with a 4 per cent increase over the three-month period.

At $1.015m, it was also among Hobart’s most expensive suburbs, and one of just six with a median price about $1m.

Fall Real Estate has sold No.55 Valleyfield Dr in Sandford for an undisclosed price. Picture: realestate.com.au

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No.500 Rifle Range Rd, Sandford is for sale with Harcourts. The 2ha property’s listing price is ‘contact agent’. Picture: Supplied

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Battery Point retained its title as the most expensive area, with a value topping $1.513m. While its median grew by 2 per cent in the quarter, it is down by 2 per cent year-on-year.

The next best quarterly results were mostly outside the city, with houses in Carlton, Old Beach, New Norfolk, Midway Point and Taroona all growing by 3 per cent.

At the opposite end of the market, buyers looking for a cheaper price would see values trending down by 3 per cent in Margate and Cambridge.

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REA Group senior economist Anne Flaherty said Hobart had made “a bit of a comeback in recent months”.

“The price correction phase that Hobart experienced after the Covid market boom appears to have turned a corner,” Ms Flaherty said.

“Way more suburbs have growing prices than not.

“And notably, Hobart was one of the best performing capital cities last month.”

REA Group economist Anne Flaherty.

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Ms Flaherty said interest rates starting to come down typically leads to increased demand.

“When it is more affordable to borrow, this can push up prices,” she said.

“That said, Hobart prices are sitting 8.3 per cent below the peak level they reached in 2022. Annual growth is currently 2.3 per cent.”

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Meanwhile, research from financial comparison site Mozo has revealed that Tasmania has recorded the fastest growth in loan sizes nationally.

Over the past decade, loans have grown by 111 per cent, or over $255,000. The average home loan doubled in this time, from $231,048 to $487,020.

Mozo’s personal finance expert, Rachel Wastell, said even if rates fall dramatically, that won’t change the fact that people are now carrying significantly more debt than they were 10 years ago.

“The best way to save on your home loan isn’t to wait for a rate cut, or rely on future cuts, it’s to proactively compare and switch,” she said.

Rachel Wastell, Mozo’s personal finance expert.

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While the RBA elected not to decrease the cash rate this week, many experts believe August is now likely.

For a market that has been flat like Hobart, Ms Flaherty said multiple rate cuts can make a big difference.

“I would expect to see price growth and a confidence boost,” she said.

“The week following the first rate cut, we had the highest number of people searching to buy on realestate.com.au in over three years.

“Interest rates have a massive impact on buyer intentions.”

Finder’s personal finance expert Sarah Megginson. Picture: Michelle Swan

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Finder personal finance expert Sarah Megginson said family wealth is becoming a crucial financial lifeline.

“Millions are quietly depending on family support to achieve their financial goals, whether it’s purchasing a home, sending their kids to private school or settling debts,” she said.

“With sky-high living costs and loads of wealth being held by older generations in property and super, Australians are banking on an inheritance.

“But, don’t put all your eggs in that basket.”