Hobart is in good position to achieve a steady growth this year, according to the latest forecast by Herron Todd White (HTW).
Stephan Ning Liu, property valuer at HTW, said the record-low interest rates and the "safety" of Tasmania will be the major drivers of housing demand in the city this year. He said properties in the sub-$600,000 price bracket are likely to be the sweet spot for potential buyers.
"Multiple offers are still being fielded by agents with offers more often than not exceeding vendors’ expectations," he said.
However, Liu noted that with the increased sale prices, rental yields are slightly going down. Still, demand remains robust for reasonably-priced rental properties throughout the region.
"Gone are the days — for now — where a 7% return was the norm. Tasmania has the lowest average salaries in Australia and rental affordability is also a concern.," he said.
Outer suburbs are also likely to post gains this year, as buyers try to find an alternative to inner and near-city markets whose prices might already be out of their reach.
"Affordable suburbs tend to be in outer lying areas, particularly to the north of the capital, including Herdsmans Cove, Brighton, New Norfolk and to the east, Rokeby and Clarendon Vale. These areas are generally low to mid socioeconomic areas with good signs of growth and high demand," Liu said.
