Hobart’s housing market remained stable amid the COVID-19 outbreak, with activity from sellers and buyers beginning strengthen, according to the latest market report from Herron Todd White.
Mark Davies, residential valuations manager at HTW, said while there was some hesitation from sellers in the early days of the outbreak due to economic uncertainty, investor activity quickly rebounded given the favourable market conditions.
"Conversations with local selling agents have indicated levels of enquiry from prospective sellers is on the increase with multiple buyers chomping at the bit trying to get into the investment market, primarily due to the low interest rate environment," he said.
Davies said dwellings in the sub-$600,000 price bracket within 15 kilometres of the CBD remain ideal investments, given their high-level of returns at around 5%. On the other hand, demand remained low for homes with a $1.5m price tag.
"Border restrictions are allowing locals some long-awaited breathing space when making offers on properties. Multiple offers on well-priced properties are still being experienced," Davies said. "All in all, the Hobart market remains stable with no real evidence of the market falling below pre-COVID-19 times."
According to CoreLogic, Hobart is among the three capital cities that reported an increase in house prices in August. Value in the Tasmanian capital increased by 1% from last month and from the previous three-month period. On an annual basis, prices remained steady. The median home value in Hobart was $393,386.
