Like rare diamonds in the sand, properties in Hobart seem to have a rising demand in the market, outweighing the available supply. Hence, most buyers are caught up in a ‘now or never’ situation which makes the market grow swifter than it already is.
Recent data from realestate.com.au reveals that 87.5% of the fastest-selling suburbs in Australia are situated in Hobart. Overall, it usually takes an average of 35 days across Australia’s capital cities to sell up, but some suburbs in Hobart recorded a median time on market figure of just 7 to 9 days.
Among the quickest property sales include Lenah Valley units and houses from Mount Stuart and Seven Mile Beach. Properties from these areas usually take 7 median days in the market. Suburbs with 8 median days in the market include Oakdowns, North Hobart, South Hobart, Old Beach, and Rosny. Those which take 9 median days to officially head off the market are Chigwell, Margate, Moonah, Cressy, Lenah Valley (houses), New Town, Blackmans Bay, Lauderdale, Howrah, Penna, Bellerive, Kingston Beach, and Rose Bay.
PropTrack economist Angus Moore sees Hobart’s low number of for-sale listings as one of the greatest contributing factors in pushing the market to such a rate.
“There are not many options for buyers to choose from, so when a home comes to market, we’re seeing buyers snap it up quickly,” Mr Moore explained.
He also stressed that such a situation is a very tough market for buyers who need to make quicker decisions “which limits how many inspections and checks they can do beforehand.”
Ray White chief economist Nerida Conisbee agrees that the demand for properties is driving the current phase where Hobart property is going twice as fast as the national average.
“It is likely the demand for second homes, as well as population growth,” Ms Conisbee mentioned.
On the other side of the fence, Simon Pressley, Managing Director of Propertyology, somewhat disagrees with this. He mentioned in one of our podcast episodes when we had him as our guest that population growth is not a really major factor in demand increase, because population growth entails a younger generation, and babies don’t buy properties. He cleared that it can be one of the reasons, but certainly not the major one.
With the demand pushing time on the market lower, prices are continuously rising as a result. In fact, most of the Hobart suburbs have recorded a double-digit price growth percentage over the past 12 months–only a few haven’t.
The fastest-selling suburbs Lenah Valley, Mount Stuart, and Seven Mile Beach have recorded a 12-month median price change of 12%, 19.7%, and 18% respectively. The highest recorded data was in Cressy with 44.9% change followed by North Hobart (36.2%) and Moonah (33.3%).
John McGregor, a Real Estate Agent at 4one4 Property Co., shared his experience about this in one of our recent podcast episodes. “This is interesting because last time, when the prices doubled, there were way more properties available; whereas the environment is just completely different this time around,” Mr McGregor said.
“I suppose, then, on days where there is limited stock, you really have to allow yourself to cast the net further and actually drive through. Don’t eliminate it,” he furthered.
In a nutshell, the difference between securing a property in Hobart and missing out on one can just be a few hundred dollars. Thus, market professionals advise buyers to jump on a home as soon as possible when they already found one that’s perfect for them.
Our Team engaged in a deeper conversation about this with the Legend Chris McGregor, a Real Estate Agent at 4one4 Property Co., and Andrew Leggett, a Broker from RAMS.
Tune in to this podcast episode for more information:
