by Sue Williams, Domain
House prices in Tasmania’s Hobart rose an extraordinary 15.9 per cent last year – the second sharpest increase of all the nation’s capital cities – to reach a record median of $601,567, now topping that of Perth, Adelaide and Darwin.
Outside the capital, there’s been an even more massive surge in prices in some areas, with one suburb north-east of Hobart recording an incredible 26.8 per cent rise, Launceston seeing a 23 per cent jump and the Derwent Valley, 22.8 per cent.
The rocketing price trend revealed by the latest Domain Price House Report is great news for homeowners but grim for renters. As a result, Tasmania’s growing affordability crisis is likely to have a direct impact on this weekend’s state election.
“For the majority of Tasmanians who own property, and those who have a second property, usually a shack on the beach or in the mountains, it’s great news,” said Tasmanian-based economist Saul Eslake. “It’ll make people feel wealthier, they’ll have more confidence and they’ll spend more.
“But for tenants paying record-high rents, and with very low vacancy rates, it’s much harder to think of converting to buying a home; or for people wanting to upgrade, it’s now more and more expensive, especially as average weekly earnings are 13 per cent below the national average.”
Nathan
May 2, 2021 at 07:53
Is it any surprise when we are swamped with tourists – and many of these return to buy property?
Tourism and the resultant tree-changers have ruined Tasmania.
Greg Bennett
May 15, 2021 at 08:53
Unfortunately, buying a house is no longer a “needs-based” matter, but more a means to create wealth.
Until that is no longer the case, stories like this will continue to be published.