Housing Prices Surge at the First Half of 2021.

The weighted average capital city median price for both houses and other dwellings increased by 4.4% and 2.9% accordingly across Australian residential property in the June quarter of 2021.

According to the Real Estate Institute of Australia’s (REIA) Real Estate Market Facts (REMF), over the past 12 months to the June quarter, the weighted average capital city median house price across Australia increased by 18.4%–the highest recorded annual rate. In figures, it inflated to an average of $913,946 for the eight capital cities.

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Adrian Kelly, Real Estate Institute of Australia (REIA) President

In general, REIA’s President, Adrian Kelly, sees this in a positive light for Australia. “The economic outlook remained strong in Australia over the June quarter on the back of an optimistic Federal Budget and falling outside of any significant lockdowns across all States and Territories,” he claimed.

The median house price clearly increased in all capital cities including Tasmania. In Hobart, the median house price increased to $675,000 in the June quarter–an increase of 8.2% over the quarter and 26.2% compared to the previous year.

In the same report, it was revealed that the median house price escalated in all Hobart zones:

-Hobart Inner (6.0%)

-Hobart Middle (12.7%)

-Hobart Outer (2.5%).

Likewise, regional Tasmania experienced a similar change.

It also increased in both Launceston (9.8%) and the North-West Centres (0.8%).

The same situation can be witnessed over the past year. All Hobart zones’ median house prices consistently increased by 22.9%, 21.8%, and 19.6% in Hobart Inner, Hobart Middle, and Hobart Outer respectively.

Launceston (22.6%) and Northwest-Centres (19.4%) in regional Tasmania observed a surge, too.

“April-June 2021 was another intensely busy time for both house sales and rentals in our regions and cities driven by the high buyer and tenant demand, and limited listings coming on the market.”

For the other dwellings in Hobart, an increase of 5.9% was recorded in the June quarter.

In figures, a rise of $510,000 was observed. From the data over the past year, it also increased by 25.9%. This was consistently witnessed in all Hobart zones both over the quarter and over the past year.

To dissect, it accelerated in Hobart Inner by 7.0% over the quarter and 30.4% over the past year, 14.4% and 24.5% for Hobart Middle, and 5.7% and 24.5% in Hobart Outer.

The rental market in Hobart, on the other hand, holds similar data to the former two for the June quarter.

For 3-bedroom houses, the median rent increased to $480 per week–an increase of 2.1% over the quarter and 11.6% compared to the previous year.

The median rent for 3-bedroom houses increased over the quarter both in Hobart Inner (1.8%) and Hobart Middle (4.4%). On the contrary, Hobart Outer’s median rent for a 3-bedroom property decreased by -2.2%. Comparing this quarter’s data from last year, all Hobart zones have experienced an increasing rate: Hobart Inner (13.1%), Hobart Middle (14.6%), and Hobart Outer (9.8%).

Moving forward with the 2-bedroom other dwellings, the same report concluded a stable data of median rate by $400 in the June quarter, but an increase of 8.1% in the past previous year.

Over the quarter, median rents for this also remained stable in Hobart Middle and Hobart Outer while it decreased in Hobart Inner (-2.2%). Compared to the data on the previous year, the median rent for 2-bedroom other dwellings increased in all Hobart zones by 15.8% in Hobart Inner, 13.6% in Hobart Middle, and 5.4% in Hobart Outer.

“Major regional centres and coastal areas continued to pique the interest of those escaping the city, Australians moving interstate, and strong interest from repatriating Australians resulting in premiums in home sales.”

Hence, the rental vacancy rate in Hobart in the June quarter decreased to 1.1%–a decrease of 0.6 percentage points over the quarter and similarly, it decreased by 1.5% compared to the previous year.

Mr. Kelly noted that investors have returned to the market in force, with a growth of 38.1% in household investor finance.

For the full REIA’s Real Estate Market Facts report, click here.

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