Hobart home buyers are as keen as ever to get into the market. Picture: SUPPLIED
PROPERTY listings have been low in Hobart for many years, and particularly so amid COVID-19, but a new report has offered a ray of stock level sunlight.
In Herron Todd White’s Month in Review report for September 2020, residential valuations manager Mark Davies said there may be an increase in homeowners heading to market.
“Conversations with local selling agents have indicated levels of inquiry 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.
“In recent months due to COVID, listings have generally been thin on the ground, maintaining property values due to the lack of stock available for sale.
“There was some hesitation from sellers in the early days of COVID due to economic uncertainty.”
While springtime has traditionally been a busy season in the property market, Real Estate Institute of Tasmania president Mandy Welling said there was “nothing traditional” about spring 2020.
She said there was still a decent level of uncertainty in the marketplace.
“Our prediction would be an active spring but with the ever-familiar ring of “short supply”,” Mandy said.
“Interstate inquiry is still healthy and we have noticed an increase in that over the previous month, specifically from investors.
“I would like to think the decrease in interstate investors would have helped local buyers but the shortage of stock is still seeing considerable pressures in these situations.
“Properties under $500,000 are experiencing a huge amount of interest and units are becoming very popular in the north of the state.
“A lack of land and affordability are driving this market space.”
A short supply of housing is an all too familiar phrase in Hobart, says REIT president Mandy Welling.
While impressed with the local market’s resilience, Mandy said there were some areas of concern, specifically:
The possibility of another extension to the emergency period for residential tenancies after December 1;
Unemployment levels increasing and property owners needing to sell;
Further increases in prices due to the high level of demand and relatively low supply.
Mandy said the latest changes to the moratorium incorporating landlords was a welcome addition but for those experiencing considerable losses already with the prospect of another 60 days “doesn’t instil a lot of confidence”.
“The last thing the Tasmanian real estate market needs is a large volume of rental properties retreating from the market,” she said.
In its report, HTW noted dwellings in the sub-$600,000 price bracket that are within 15km of the CBD were attracting high levels of interest.
Mark said with returns still in excess of 5 per cent, these properties make “a good investment decision in anyone’s eyes”.
“The market over $1.5 million remains relatively quiet; there are still prospective purchasers at this price point but they are savvy with their offers and expectations,” he said.
“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.
“All in all, the Hobart market remains stable with no real evidence of the market falling below pre COVID-19 times.”
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