Cambridge houses push annual growth past 33 per cent
SUBURBS throughout Greater Hobart have posted outstanding annual price growth in the past year.
The latest figures from CoreLogic — for the 12 months through to the end of March — showed suburbs in almost every municipality recorded median price growth in the 20 per cent to 30 per cent range.
Eastern Shore suburb Cambridge recorded a 33.9 per cent uptick, with 21 houses sold at a median of $567,000.
In Glenorchy, Hobart and Kingborough, it was often unit markets that performed best.
Real Estate Institute of Tasmania president Tony Collidge said the shortage of unit and townhouse accommodation, especially in Hobart, had seen prices increase significantly across most areas.
He noted Lindisfarne, Lutana, Taroona and North Hobart (each with growth above 28 per cent) were among the
“Unit and townhouse accommodation is increasing in popularity as Hobart’s ageing population looks to downsize and Millennials seek accommodation which is modern, low-maintenance and close to services,” Tony said.
“With apartment accommodation at a premium, we can expect to see unit and townhouse prices hold their value into the future.”
He said as the market transitioned from a sellers’ market to a balanced market, fluctuations in suburb prices should be expected.
Tony said the very top end of the market — homes selling for more than $1.5 million — appeared to be holding, with properties continuing to achieve strong interest and solid results.
“Property in Battery Point has performed well in the past year while Sandy Bay has slowed,” he said.
“Other premier inner-city suburbs like West Hobart and South Hobart have continued to grow, while North Hobart, Bellerive, Howrah, Kingston and Blackmans Bay recorded varying median sale price movements over the period.
“The winners in this transition period appear to be suburbs with houses prices below $500,000.
“REIT figures show Cygnet’s median house price increased by 48.7 per cent over the year to March.
“Areas like Clarendon Vale, Cambridge, Brighton and Austins Ferry all performed strongly.”
Tony said the outcomes of the median price movements over the June quarter would provide a guide to the course the market is setting.
“I suspect we will continue to see a slowing in price growth and a flattening of the market,” he said.
“Sellers will be forced to negotiate with buyers, not dictate as they have in the past.”
Tony described the Hobart market as being in an “interesting stage”.
Just two months ago, based on the REIT’s data, it appeared that the city’s property boom was over.
Hobart’s median price dipped for the first time in five years and the market appeared to be “running out of puff”.
Tony said investor activity had also dropped by 30 per cent during the quarter.
“The investor downturn could have been a result of everybody believing Labor would win the election, and people were waiting to see what they would do in relation to capital gains and negative gearing,” he said.
“The market had noticeably slowed and shrunk over those three to four months.
“The tap had almost been turned off, except on the North-West Coast, which is bustling.
“Come the Monday following the election it was as though the tap had been turned back on. There appears to be more confidence in the marketplace and business has picked up.”
BEST-PERFORMING suburbs, 12 months through March, Greater Hobart council areas (Suburb, house or unit, annual change median price, no. sales, median).
Gagebrook H 23.5% 32 $210,000
Herdsmans Cove H 20.7% 31 $210,000
Bridgewater U 16.1% 16 $195,000
Cambridge H 33.9% 21 $567,000
South Arm H 32% 21 $495,000
Lindisfarne U 31.9% 45 $446,500
New Norfolk H 17.1% 129 $251,830
New Norfolk U 14.6% 34 $234,987
Magra H 8.6% 23 $404,500
Lutana U 29.5% 13 $345,000
Chigwell H 25% 51 $325,000
Austins Ferry H 20.8% 42 $435,000
North Hobart U 28.2% 17 $610,000
New Town U 17.8% 43 $344,000
Battery Point H 14.5% 26 $1.116m
Taroona U 29.3% 13 $650,000
Margate H 14.5% 65 $587,000
Snug H 9.6% 21 $487,500
Carlton H 20.1% 42 $355,000
Lewisham H 16.7% 17 $455,000
Dodges Ferry H 16.2% 60 $348,500