Hobart dwelling market continued growing from the pandemic's onset: CoreLogic Pain & Gain report
Hobart has had the lowest rate of loss making sales among the capital city markets since March 2018, according to the recent CoreLogic Pain and Gain report.
The report notes this trend continued in the June quarter, as loss making sales comprised 3.2% of resales, compared with an average of 20.0% across the other capital cities.
Despite having the lowest portion of loss making sales of the capital cities, the incidence of loss making sales did rise from 2.5% in the three months to March.
The portion of profit making sales was 96.7% across houses, and 96.9% across units.
While units had a higher incidence of profit making sales, the rate declined by a steeper 1.1 percentage points from the March quarter, the report noted.
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Source: CoreLogic Pain and Gain report
Hobart was also one of few areas in Australia that saw an increase in the number of loss making sales, from 16 in the March quarter, to 19 observed in the three months to June.
The unit segment across Hobart has been one of the worst affected rental markets since the onset of the pandemic.
Hobart unit rents fell 5.1% between March and August, driven by a fall in tourism which reportedly prompted an influx of short term accommodation supply into the long term rental market, and a fall in demand from locals working in the tourism industries.
The significant decline in rental incomes may prompt more investor sales until interstate borders are reopened, the report noted.
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Source: CoreLogic Pain and Gain report
However, the chance of this leading to an increase in loss making sales may be offset by the increase in dwelling values.
As with smaller markets such as Adelaide and the ACT, the Hobart dwelling market continued to increase in value from the onset of the pandemic. At August, dwelling values had risen 0.9% since the end of March.
