Hobart continues to report strong gains in prices despite the impacts of the COVID-19 pandemic on the overall property market in Australia.
Hobart's metro region posted price gains in both its house and unit segments, according to the latest market update by PRD Research. Median prices this year have increased by 4.7% to $560,000 for houses and 4.2% to $442,000 for units from last year. These increases are consistent with the gains recorded last year.
"Limited stock coupled with high demand has continued to push prices upwards, resulting in the need to sacrifice affordability for liveability," the report said.
Hobart's metro region has been reporting healthy price growth across its dwelling segments over the past five years. This should allow property owners to be confident about their asset's ongoing value.
"A limited residential development pipeline creates urgent opportunities for the local government and developers to collaborate in ensuring housing supply constraints are eased in the near future," the report said.
Hobart's metro region has also retained a highly resilient rental market throughout the COVID-19 pandemic. Rental yields in the region were 4.1% in the 12 months to the third quarter this year, with rents increasing to $470 per week.
The region also posted a decline in the average days-on-market for rental properties, which went down to 20 days. Furthermore, the region maintained a vacancy rate of 0.6%, significantly lower than that of Sydney and Melbourne.
