Hobart: More home value growth to come throughout 2019

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A “trifecta of good news” will provide the Hobart property market with a second wind. Picture: PATRICK GEE

PROPERTY market analysts believe there is growth on the horizon for Hobart and Tasmania.

A home value report from CoreLogic and Moody Analytics and new research by Propertyology said house values in the southernmost capital were not expected to decline this year.

Propertyology head of research Simon Pressley said while price growth in Hobart had “taken a breather” in the past few months a “trifecta of good news” will provide the city with a second wind.

The federal election result, interest rate cuts and some loosening of lending policies will increase property buyer confidence, he said.

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Mr Pressley credits the initial cause of the recent market boom to the state’s improved economy.

He said brighter economic conditions coming from job-creating projects such as the City Deal, expansion of the airport, new luxury hotels, investment in infrastructure by University of Tasmania, and the development of Macquarie Point.

“Importantly, Hobart is streets ahead of every other capital city for growth in job advertisements (27.3 per cent), a leading indicator for near-term economic growth and a helpful metric for property price growth,” he said.

Moody Analytics is forecasting 2.8 per cent growth in Greater Hobart in 2019 followed by minor market corrections in the following two years.

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Moody economist Katrina Ell said Tasmanian homeowners should expect a slowdown in growth as opposed to an outright decline in values.

Real Estate Institute of Tasmania president Tony Collidge said the market had bounced back transaction-wise following the election.

He expects to see a continuation of slowing price growth and a flattening of the market compared to its peak.

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