Half of Australia fell, this Hobart suburb soared

Nearly 90 per cent of Hobart suburbs recorded house price growth over the past quarter.

PropTrack’s new quarterly home price figures show 45 of 51 suburbs saw median prices lift by between 1 per cent and 9 per cent.

And an unexpected suburb led the pack: Clarendon Vale.

This Eastern Shore suburb’s typical house price has shot up from $505,905 three months ago to $550,909.

The next best results were in nearby suburbs Rokeby, Oakdowns and Howrah, which all grew by 7 per cent in the quarter.

Ray White Hobart’s Hugh Balcombe said Clarendon Vale has attracted consistent buyer demand for years.

He said well-presented homes, particularly those under the median price or newer builds, regularly attract good numbers through open homes and see buyers competing with multiple offers.

“Buyers, particularly investors, are recognising the value the suburb offers,” he said.

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Mr Balcombe wasn’t surprised to see Clarendon Vale had recorded Hobart’s highest growth rate.

He said as prices have increased across Greater Hobart, buyers have looked for suburbs where they can still purchase a freestanding home at an accessible price.

“That demand has naturally driven stronger growth. Rokeby and Oakdowns are experiencing similar trends as buyers broaden their search for value,” he said.

“Affordability is certainly the biggest factor.

“For many first home buyers, Clarendon Vale is one of the few suburbs where purchasing a house is still achievable.

“As more properties are renovated, and new owners move into the area, buyer perception of the suburb has continued to improve.

“Historically, Clarendon Vale has been very popular with investors due to its attractive rental yields. More recently, owner-occupiers, particularly first home buyers, have become a larger proportion of the buyer pool.”

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The report showed three suburbs with no change in quarterly house price values; Dodges Ferry, Primrose Sands and Acton Park. And three more with small declines: New Town (-1 per cent), and Taroona and Sandford (-2 per cent).

At the top of the table, six suburbs have a median price above $1m, with Sandy Bay the highest-priced suburb, narrowly edging out Acton Park — $1.368m and $1.35m.

West Hobart was not a million-dollar suburb last quarter but is now. Similarly, Mount Stuart was not a million-dollar suburb a year ago, but is now among the most expensive areas.

In the unit sector, the largest quarterly change was recorded in Glenorchy, up 9 per cent, followed by West Moonah and Warrane (7 per cent), and Moonah and Montrose (6 per cent).

The most affordable suburb to purchase a unit was New Norfolk, with its $496,754 median value, while Hobart City was the highest at $817,764.

Nationally, the report found that half of all Australian suburbs fell into negative territory this quarter.

The starkest results were in New South Wales and Victoria, as 70.58 per cent and 68.96 per cent of suburbs respectively notched price drops.

Meanwhile, the latest realestate.com.au Property Outlook report forecast Hobart prices to grow more than most capital cities through the rest of the year and next year.

REA Group senior economist Angus Moore expects Hobart prices to finish 6 per cent higher this year and 7 per cent higher in 2027. Only Perth is forecast to grow by more.

“Recent strong price growth in the Hobart market was driven by an increase in first home buyers from the expanded 5 per cent deposit scheme and growth in investor activity,” Mr Moore said.

“While the southernmost capital is expected to experience slower population growth than other cities, lower price levels and low-deposit policies, this will likely support owner-occupier demand in the market.

“The state is expected to have a strong pipeline of capital works beginning, which, combined with recent interest rate hikes, may soften residential construction and dwelling supply, resulting in above-average price growth.”