- Hobart house prices increased by 6.1 per cent over December quarter
- Median now $564,091
- Now the third most affordable capital city
- Units likewise at their highest level - $432,552
- Tasmania’s lifestyle attractive to many buyers
Previously the most affordable capital city in Australia, Hobart has seen a large jump in its median house price with a 6.1 per cent increase in the December quarter alone according to Domain’s House Price Report for December 2020.
This takes the median house price to $564,091, representing a 12.4 per cent year-on-year increase for the Tasmanian capital. Subsequently Hobart is no longer the most affordable capital city; both Darwin and Perth now enjoy a lower median.
Notably the report reveals that whilst Hobart units are at an all-time high, they only increased by 1 per cent in the December quarter and 2.5 per cent over the year, taking the median to $432,552.
To put this into perspective, year-on-year Darwin and Adelaide saw a 7.5 per cent and 13.5 per cent increase for units respectively.
The trend of houses significantly outperforming units has become highly prevalent in the capital city markets. Reasons for this include buyers spending more time at home – including working from home – as a result of lifestyle changes fueled by the pandemic. Therefore, larger houses with more space and privacy are more appealing to buyers than units.
It should be noted that house prices across Tasmania had been increasing prior to the beginning of the pandemic last year due to interstate migration, so it is likely COVID-19 has further exacerbated this price drive.