{"id":12988,"date":"2017-07-28T16:48:13","date_gmt":"2017-07-28T06:48:13","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=12988"},"modified":"2017-07-28T16:48:13","modified_gmt":"2017-07-28T06:48:13","slug":"the-affordable-location-set-to-outperform-sydney-and-melbourne","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/the-affordable-location-set-to-outperform-sydney-and-melbourne\/","title":{"rendered":"The Affordable Location Set To Outperform Sydney And Melbourne"},"content":{"rendered":"

Hobart To Surpass Sydney & Melbourne<\/b><\/p>\n

Hobart is Propertyology\u2019s tip to be Australia\u2019s best performed capital city property market in 2017.
\nAn underrated economy, limited properties for sale, the tightest vacancy rates in Australia, a much more controlled housing supply pipeline compared to mainland cities, and increased buyer activity are expected to drive property prices and rents higher.
\n\u201cWe have been actively investing in Hobart for a couple of years now. Hobart\u2019s property market was dead flat when Propertyology started our run there. Our buyer\u2019s agents have observed firsthand price growth of 8 to 10 per cent over the past 12 months. We can only see buyer activity further intensifying and forcing stronger growth over the next couple of years,\u201d said Propertyology Head of Market Research, Simon Pressley.
\nOn an all things being equal basis, double-digit price growth is well and truly on the cards for Hobart in 2017.<\/p>\n

\"hobart\"<\/a><\/p>\n

\u201cThe significant retraction in properties listed for sale has made it increasingly difficult for our buyer\u2019s agents to find suitable properties for our investors. Properties are generally selling within a week of listing and often going for prices well above our own appraisal range. The market is red hot,\u201d Pressley said.
\nResidential vacancy rates in Hobart are the lowest of all capital cities and rental yields are the highest.
\nAccording to Propertyology, \u201cit\u2019s an investor\u2019s paradise in that Hobart is producing the dual benefit of solid capital growth and high rental yield\u201d.
\nHousing Demand<\/span><\/b>
\nOn the back of the underrated improvement with Tasmania\u2019s economy over the last couple of years, the latest quarterly population data from ABS showed its highest population growth rate in five years. A reversal in the interstate migration trend is an additional positive indicator.
\nSome property investors place too much emphasis on Tasmania\u2019s below average population growth rate. The fact is that, over the last 20 years, there have only been 2 quarters out of 80 where Tasmania\u2019s population grew by more than the national average (Q2 2006 and Q4 2003) but Hobart\u2019s property market has experienced plenty of strong years. Perhaps the best example is the 6 year era 2001 to 2006, inclusive, when Tasmania\u2019s population growth rate was below the national average for 5 of those 6 years yet property price growth was far superior to Sydney, including growth of 44.6 per cent, 32.1 and 11.2 in 2003, 2004 and 2005.<\/p>\n

\"hobart<\/a><\/p>\n

Of greater significance to housing demand than population growth is affordability and economic improvement. Hobart\u2019s median house price is well less than half the cost of Sydney and Melbourne and there\u2019s good reason to be optimistic about Tasmania\u2019s economy.
\n\u201cThe much lower entry price and higher yield make Hobart a significantly safer investment than Australia\u2019s two biggest cities, particularly so when interest rates start trending up again\u201d.
\nJob volumes in Hobart bottomed at 100,400 in January 2014 and increased to 106,000 as at December 2015. The improved labour market has definitely lead to a general increase in consumer confidence.<\/p>\n

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Sydney and Melbourne are much closer to the end than the beginning of their growth cycles. Hobart, on the other hand, is just beginning.
\nEconomy<\/span><\/b>
\nWhile Tasmania\u2019s economy still has a few challenges, the same can be said for most of Australia. The untold story however, is the significant improvement which has already taken place:<\/p>\n