Hobart - is double digit price growth coming to an end ?
After hitting a median of $ 780,000 in March 2022 , Hobart ’ s house prices now appear to have peaked , however , for now , the city ’ s still recording double digit annual growth rates . This of course will slowly come to an end over the rest of the year . Monthly declines are now occurring , driven by interest rate rises and a change in sentiment towards property .
This stabilisation in the market will be good news for many looking to buy . Hobart ’ s median just recently overtook Brisbane . Furthermore , the city has moved from being Australia ’ s cheapest capital , a position it held until 2019 , to being its fourth most expensive after Sydney , Melbourne and Canberra . The sharp rise in pricing has been great news for property investors but tough for locals , particularly first home buyers . With growth starting to stall , this has pushed buyers out to regional parts of the state and smaller cities such as Launceston .
While prices are starting to stabilise , the same cannot be said for rents which continue to increase . With overseas and interstate students coming back into the state and an increase in population growth expected over the next few years , Hobart ’ s housing shortage will continue to cause challenges for rental affordability . The city is set to become a bit more affordable for buyers , but there ’ s still a long way to go for affordability to improve for renters .
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