In a surprise twist, Hobart has emerged as Australia’s best-performing capital city, according to RP Data-Rismark’s June Home Value Index, but local experts have said they beg to differ.
The Tasmanian capital had the biggest rise in property values over June at 2.7%, but Tassie Home Loan’s managing director Robert Brand said he is unsure whether it is an accurate reflection of the market.
“I don’t think this reflects what is actually happening down here. They’re being ultra-conservative and pushing prices down. The median price moves up, which isn’t an indicator of real value…just lack of activity in the South. No one is seeing any increase.”
Chris Groves of Hobart-based Financial Advisory Service agreed. “This definitely surprises me. The growth here has been very slow. Prices have dropped considerably, and not much is selling at all. I’ve been in this business for 21 years, so I know most of the brokers in Tasmania, and we’re all experiencing the same thing.”
“It could be down to refinancing. We’re seeing a lot more of that down here…we’re not seeing any new applications coming through,” he said.
Meanwhile, the figures showed an overall growth rate of 1% across Australian capital cities, defying the normally weak June period.
Both RP Data research director Tim Lawless and Rismark International’s CEO Ben Skilbeck attributed the growth to the RBA’s recent cuts.
“The rebound in capital city home values during June indicates that the RBA’s relaxed monetary policy stance may have reached the point of inflating asset prices despite households remaining cautious about the economy,” said Skilbeck.
“The increase in capital city dwelling values is an encouraging sign that the market appears to be responding to improved housing affordability and lower interest rates,” said Lawless.
