Hobart's property prices continue to boom in comparison with other capital cities, but Launceston is showing up the Southern city with its value for money.
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Australian Bureau of Statistics figures released on Tuesday show property prices in Australia's eight capital cities dropped in the December 2018 quarter in all but two states and territories - Hobart and Adelaide.
Hobart's property prices rose by 0.7 per cent between September and December 2018, making a gain of 9.6 per cent on prices at December 2017, the figures showed.
"The price index for residential properties for the weighted average of the eight capital cities fell 2.4 per cent in the December quarter 2018. The index fell 5.1 per cent through the year to the December quarter 2018," the bureau said.
This makes Hobart's 0.7 per cent rise a big tick for Tasmanian property.
Launceston is the investment capital of Tasmania.
- Tony Collidge
Real Estate Institute Tasmania president Tony Collidge said Hobart prices were booming because of the capital's property shortage, but Launceston had been flagged as one of this year's top real estate performers.
Based on property sales, Launceston has the highest number of transactions in the state, Mr Collidge said.
"Launceston is the investment capital of Tasmania," he said.
Reasons for these high investment rates include the city's transient population due to a high number of students and people staying at Launceston General Hospital.
"Launceston is more like the mainland in investment. Hobart has 70 per cent owner occupiers and 30 per cent rental, but Launceston has 60 per cent owners and 40 per cent renters."
Domain said Launceston was a hot spot and Propertyology tipped the city to be a big performer, he said.
Propertyology's Simon Pressley said Launceston was his "short odds favourite to be Australia's best market 2019", while Domain economist Trent Wiltshire said "views per listing in Launceston increased by about 40 per cent over 2018".
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Mr Collidge cited the Northern city's affordability as the major reason for the real estate interest.
"The same-sized house [in Launceston] is almost $100,000 cheaper than in Hobart, so you're getting good value for money," Mr Collidge said.
"It is a strong market so properties for sale are tight - when they come on the market a number of people are looking at them."
This activity is expected to cool off later in 2019 or early 2020, Mr Collidge said.
"Hobart is at its peak and is starting to cool a little, but positive price rises are still predicted into 2020."
Each city's economy dictates what happens in that real estate market, he said.
"We seem to have a positive economy at the moment. We're seeing cranes in the sky and that gives you a sense of confidence, which creates job security and then people look to buy," Mr Collidge said.
"The pressure is on our government to keep that confidence rolling, otherwise we'll end up like all the other states."
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