GREATER Hobart’s red hot property value growth streak has seen it lead the nation over the past three and a half years.
In its new Pain & Gain report, CoreLogic revealed the southernmost capital city had recorded the highest rate of profitability in Australia for 14 consecutive quarters.
While all of Hobart was shining brightly in the report, three municipalities recorded mind-boggling results.
In the December quarter, every home sold in two LGA’s — Glenorchy and Kingborough — was at a profit compared to the previous time these properties were sold.
And in the city, the Hobart LGA passed a milestone with the median profit from these re-sold homes ticking over the half a million mark to reach $515,000. In the middle of last year, it was $443,500.
Kingborough and Clarence recorded median profits in December above $400,000 for the first time.
CoreLogic’s head of research, Eliza Owen, found that across greater Hobart, 98.3 per cent of homes were sold at a profit.
“Hobart also saw the third-highest median gain from resales of the capital cities at $395,000,” she said.
“This was behind only Sydney and Melbourne.”
Harcourts Signature property representative Mark Brudenell said even with some uncertainty in the market, Hobart sellers were in a strong position.
“I reckon we will just have market stability moving forward,” he said.
“The storm of the federal election and the move in RBA rates have just spooked people for a bit — but this will all stabilise.
“It’s still a great time to sell as there is low supply and still very low home loan rates compared with history.
“Inquiry remains strong in our area.”
Across the greater Hobart LGAs, Brighton recorded 95.4 per cent of sales at a median profit of $250,500; Clarence tipped the scales at 99.5 per cent and $400,000; 97.8 per cent of Derwent Valley homes made a profit at a $250,000 median; Glenorchy and Kingborough’s median profits were $325,000 and $413,000; 95.6 per cent of Hobart LGA sales made a profit; and in Sorell 96.8 per cent were in the plus column with a median of $355,000.
Overall, there was over $338m worth of property sold in the three-month period, led by Hobart (83m-plus), Clarence (80m-plus) and Glenorchy ($61m-plus).
Ms Owen said the transformation of the Hobart housing market had, in part, come from a thriving tourism sector through the 2010s.
“While this was disrupted through Covid, dwelling values increased by an extraordinary 34 per cent between March 2020 and December 2021,” she said.
“The Tasmanian market may reach a peak in the rate of profitability from resales through the course of 2022.”
GROSS PROFIT-MAKING SALES, DEC-21 QTR
Percentage of profit sales, Hold period, Median profit, Total value of profit
Brighton 95.4% 6.3 $250,500 $17,033,776
Clarence 99.5% 8.6 $400,000 $80,888,254
Derwent Valley 97.8% 7.6 $250,000 $13,669,575
Glenorchy 100.0% 8.4 $325,000 $61,037,794
Hobart 95.6% 9.4 $515,000 $83,520,674
Kingborough 100.0% 8.4 $431,000 $58,223,999
Sorell 96.8% 9.4 $355,000 $24,331,781