TAS Hobart real estate is 'hottest in Australia'

Discussion in 'Where to Buy' started by See Change, 9th Jul, 2018.

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  1. See Change

    See Change Well-Known Member

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    Some impressive figures for Tasmania when you look at the individual figures on economic growth . On four of the indices , Tasmania was leading the way in terms of percentage growth .

    Cliff
     
  2. John Ferguson

    John Ferguson Well-Known Member

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    Market 1 years 10 years 20 years
    Sydney -7.4pc +81.4pc +220.1pc
    Melbourne -4.9pc +74.7pc +295.4pc
    Brisbane -0.3pc +16.1pc +185.3pc
    Adelaide +1.8pc +23.7pc +198.6pc
    Perth -3.3pc -1.1pc +159.0pc
    Hobart +9.7pc +42.9pc +230.0pc
    Darwin -2.9pc -3.1pc +77.8pc
    Canberra +4.3pc +35.4pc +233.6pc
    Source: CoreLogic

    Makes me giggle when I remember all those naysayers telling me not to invest in the Hobart market 6 years ago saying Hobart is a basket case. Well glad I blocked out that noise
     
  3. chindonly

    chindonly Well-Known Member

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    Those 20 year stats are really interesting. Melb well ahead!
     
  4. John Ferguson

    John Ferguson Well-Known Member

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    Yep it
    Yes it is and I would assume that is because it had more room for growth than Sydney over that period.
     
  5. Vultures

    Vultures Well-Known Member

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    I'm in Hobart and from what I can see there is a definite slowdown.
    We sold a house in Claremont 9 months ago. Tiny, old kitchen, no garage, dirt driveway, not the best neighbours. It had 50 people through the open, 8 offers, it almost came to blows at the property over the perceived 'unfairness' of mainlanders pricing the locals out of property. All the top offers were mainlanders and sight unseen. Sold for $315k, more than 20% over asking price.

    We have another property which we put on the market recently. This one is in a better suburb, bigger, has a great view, garage, proper driveway, electric shutters, great neighbourhood. Thirteen people through the first open, no offers. Second open, one person through, no offer yet. Virtually the same price as the Claremont house.

    Agent says he's noticed the change in the last couple of weeks. Fewer people at opens, few if any multiple offers and hard to get finance. Far fewer interstate investors due to the declining Sydney/Melb markets.

    Having said that, had we kept it, the rent was going to go up.
     
  6. John Ferguson

    John Ferguson Well-Known Member

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    Yes before the royal commission and tighter lending initiatives investors were very active in the Hobart market. Investor demand definitely appears to have weakened. You’ll find the homes that have a strong demand now will be the homes with strong owner/occupier appeal. Character homes in inner-ring blue chip suburbs will still attract demand from professionals and cashed up buyers/semi and retired mainlanders who have relocated to Hobart for its affordability within the inner-ring fringes and easy lifestyle benefits.
     
  7. John Ferguson

    John Ferguson Well-Known Member

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    According to this demographer Hobart is set for solid population growth. I can tell you now that congestion is in all four corridors in and out of the city/cbd is horrendous and there is pretty much zero change that any Local Government/Council will have any plans in place to deal with even the smallest increase in capital growth. So saying that, congestion is only going to get a whole lot worse. So where would I be buying if investing in Hobart? Inner-ring suburbs with a 10km radius around the CBD. Where I started investing six years ago. Personally I would steer clear of large unit and apartment complex's. Hobartian's place huge value on having some land. Even if it's only a small parcel of land. Just thought I would add my thought's for anyone currently considering investing in Hobart.
     

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  8. legallyblonde

    legallyblonde Well-Known Member

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    Market has def flattened recently. I have zero interest in buying in the next few years (which is lucky because I have no borrowing power). Then again desirable/special quality properties are still moving. I have been to two open homes this month. One was packed and the agent was swamped with offers (was unconditional within 72 hours of listing for a great price), at the other one I was the only person there (although to be fair it was noticeably over priced).

    Listening in on the masses though it seems that the majority are expecting a price correction/reduction. Personally, there might be a super tiny dip as we are not in a plateau, but it is not a concern. My main worry is how long it will be until we achieve more growth,historically Tassie has really long gaps between booms.
     
  9. TSK

    TSK Well-Known Member

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  10. dabbler

    dabbler Well-Known Member

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    I had friends down there very recently, who said they could not believe the amount of buses with Asian tourists.....and how friendly everyone was :)
     
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  11. GoLizard

    GoLizard Member

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    Things have definitely softened, at least in the inner ring I've been watching. We recently sold two properties and the first within hours of going online 10 lots went through with an impromptu opening (Friday afternoon during working hours) and one put an offer on the table. The whole thing moved so fast the agent didn't have time to arrange a formal opening. The second one had a buyer before it was listed who made a signed contract offer at the end of the first open. Both of the above had further (inferior offers) the purchaser in both cases increased their offers twice before we accepted it. Both were locals. Both were single (one older, one younger). One had to borrow 50%, the other was 100% cash. That said properties in the same that were on the market before we listed the first one in mid October are still on the market. From what I've been observing, and feedback from the agent, purchasers have been struggling finance wise and this has especially impacted those 1 million plus. They are also fussier.
     
  12. GoLizard

    GoLizard Member

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    I wouldn't discount investing close to the city or apartments. I think there I very little land available in the inner ring and many people value proximity to the city and will sacrifice size of dwelling to achieve it. Our apartments have increased around 10x in less than 20 years. The last one we let had 32 people inspecting and 20 applications. Its small and unrenovated.
     
  13. See Change

    See Change Well-Known Member

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    Hi GoLizard

    Is that you Goanna ?

    Cliff
     
  14. dabbler

    dabbler Well-Known Member

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    I dunno......will Walla be there ?
     
  15. Mark

    Mark Well-Known Member

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    Cliff
    Launceston performed better than Hobart last year which seems to be a ripple effect. I am visiting Launceston now. The place is great for a peaceful life style. I am looking at buying here but have a couple of concerns

    - It has boomed for a couple of years. The remaining growth potential becomes less
    - Small city with long term negative population growth for many years in the past although the population is slowly increasing lately.
    - Too many people believe that regional properties do not as well as the ones in capital cities in the long term. This belief is still influencing me but I am a little bit more leaning towards the belief that timing the market is more important

    I am thinking whether I should move to the Brisbane market now although I bought a few there already between 2014 and 2016.

    Looking forward to hearing your views

     
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