Sales point to next Hobart growth hotspot

The index tracks housing sales volume rather than the industry’s common measurement of median price changes and asserts that sales are a superior indicator of future growth.

In the Spring 2024 report, Hotspotting director Terry Ryder said Clarence has shown “notable improvement in market activity”.

“In Clarence, sales volumes in the latest quarter were 26% higher than a year earlier,” he said.

“Bellerive’s median house price ($860,000) is ranked as a rising market, although the numbers remain a little muted, while more affordable Geilston Bay ($690,000) is notable for its consistent sales activity.”

PropTrack’s Market Trends report shows 51 house sales in Bellerive over the past 12 months with the median price rising by 2%. Compared to five years ago, it is 45% higher.

This three-bedroom Bellerive house is currently on the market and is accepting offers over $965,000. Picture: realestate.com.au

In Geilston Bay there were 49 sales and a 5.4% reduction in the annual median price. It also remains substantially higher than five years ago by 38%.

While property markets never stay at the top or bottom of cycles forever, Hotspotting general manager Tim Graham described Hobart and regional Tasmania’s housing markets as “sluggish”.

He said there were some signs of recovery in regional Tasmania.

“Around half of locations across regional Tasmania have positive rankings of rising, recovery or consistent, which represents a solid position but well short of a strong one,” Mr Graham said.

“This is reflected in the price data, with the median house price for regional Tasmania rising 2% in the past 12 months and the median unit price moving 1%.”

Mr Ryder said while Hobart has been the weakest performing capital city market, there were “glimmers of recovery” and “signs of life”.

“However, sales volumes in greater Hobart remain at similar levels as the same time last year, and below the peaks in 2020-2021 when the city was a national leader on sales activity and price growth.”

PropTrack’s latest Home Price Index showed flat movement in the southernmost capital, sitting 0.93% lower than the same time in 2023.

The report said Hobart had recovered some of its declines over the past four months.

This article first appeared on realestate.com.au and has been republished with permission.