Hobart’s Seller’s Market Still Hot
The Tasmanian capital’s property market continues to generate profit.
< 1 min
In CoreLogic’s latest Pain & Gain report, the firm found that Hobart had the highest rate of profit-making sales across Australia for the 15th consecutive quarter.
Within the Hobart LGA, 98% of seller’s made a median profit of $508,300.
In the previous quarter, the median profit was $443,500 — over $100,000 higher than the March quarter results.
Astonishingly, the Derwent Valley saw 100% of September quarter sales turn a profit compared to their most recent sale figure boasts a median profit of $240,000. Moreover, this sum was the smallest of the seven LGAs.
Elsewhere, areas such as Brighton registered a median profit of $245,000, Glenorchy $291,000 and Sorell $305,000.
Clarence sellers recorded a median profit of $356,949 while in Kingborough the sum was $384,000 with the percentage of all sales in the quarter that were profitable registering above 96% in each area.
The total value of the profit made in the Greater Hobart LGA’s was $12.9m in Brighton, Clarence $60.5m, Derwent Valley $12m, Glenorchy $51.3m, Hobart $83.6m, Kingborough $36.8m and Sorell $21m — a total of $278,441,017 for the last quarter.
Further, in Hobart, 99.5% of units and 97.5% of houses made a profit — the only city where the housing segment incurred a higher incidence of lass-making sales compared to units.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
Capital cities lead the way as median home values see clear upswing
2 min
Home values continue their upwards trajectory, recording the strongest monthly growth in 18 months, CoreLogic data shows.
The property data provider reports that their Home Value Index has noted a third consecutive rise in values in May, accelerating 1.2 percent over the past month. This is on the back of a 0.6 percent increase in March and 0.5 percent rise in April.
Sydney recorded the strongest results, up 1.8 percent, the highest recorded in the city since September 2021. The fall in Sydney’s home values bottomed in January but have since accelerated sharply by 4.8 percent, adding $48,390 to the median dwelling value.
Melbourne recorded more modest gains, with home values increasing by 0.9 percent, bringing the total rise this quarter to 1.6 percent. It was the smaller capitals of Brisbane (up 1.4 percent) and Perth (up 1.3 percent) that reported stronger gains.
CoreLogic research director Tim Lawless said the lack of housing stock was an obvious influence on the growing values.
“Advertised listings trended lower through May with roughly 1,800 fewer capital city homes advertised for sale relative to the end of April. Inventory levels are -15.3 percent lower than they were at the same time last year and -24.4 percent below the previous five-year average for this time of year,” he said.
“With such a short supply of available housing stock, buyers are becoming more competitive and there’s an element of FOMO creeping into the market.
“Amid increased competition, auction clearance rates have trended higher, holding at 70 percent or above over the past three weeks. For private treaty sales, homes are selling faster and with less vendor discounting.”
Vendor discounting has been a feature in some parts of the country, particularly prestige regional areas that saw rapid price rises during the pandemic – and subsequent falls as people returned to the workplace in major centres.
The CoreLogic Home Value Index reports while prices appear to have found the floor in regional areas, the pace of recovery has been slower.
“Although regional home values are trending higher, the rate of gain hasn’t kept pace with the capitals. Over the past three months, growth in the combined capitals index was more than triple the pace of growth seen across the combined regionals at 2.8% and 0.8% respectively,” Mr Lawless said.
“Although advertised housing supply remains tight across regional Australia, demand from net overseas migration is less substantial. ABS data points to around 15% of Australia’s net overseas migration being centred in the regions each year. Additionally, a slowdown in internal migration rates across the regions has helped to ease the demand side pressures on housing.”
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
