HOBART has held onto its crown as Australia’s best performing capital city property market — but the gap between it and Canberra has shrunk.
In its April Home Value Index report, CoreLogic revealed annual dwelling values in Hobart grew 3.8 per cent compared to 2.5 per cent in Canberra and 0.3 per cent in Adelaide.
Brisbane edged backward 1.9 per cent while Sydney and Melbourne were negative 10.9 and 10 per cent respectively.
Last month Hobart posted a 0.6 per cent monthly change in home values, the only city with a positive result. But in April it recorded a 0.9 per cent decline, which was larger than every city except for Darwin.
The difference between Hobart’s upper and lower quartiles was vast.
In the top end of town there was an annual positive change of 0.9 per cent while the lower end returned a nation-leading 8.2 per cent rise.
In regional areas, Tasmania topped the charts.
The report showed 8.6 per cent annual value growth in the South East and 7.1 per cent in the West and North-West.
MORE TASSIE NEWS
Hobart’s rental rises were also nation-leading with 5.7 per cent growth. This was attributed to strong demand and low rental supply.
Rental yield in Hobart was 5.2 per cent while regional Tasmania was slightly higher at 5.4 per cent.
Harcourts Kingborough director Andrew Henry said following the royal commission and banks’ subsequent tightening of lending conditions, there had been a “normalisation” in the local market.
“Prices haven’t come all the way back from the peak, but I would say the times of people paying massively above an aski g price have finished,” he said.
“I think the market will settle and we will have a slower, steady climb. That is good news for people that are trying to buy a home.”
CoreLogic head of research Tim Lawless said the national decline in home values had lost some momentum.
“Considering that tighter credit conditions were one of the primary catalysts for the housing market downturn, any sign that credit availability is improving would be a welcome outcome for the housing market,” he said.
Hobart has been the number one city for capital growth for 18 consecutive months, per CoreLogic data.
Yesterday the Real Estate Institute of Tasmania’s March quarter report revealed Tasmania’s first median price retraction in several years.