Hobart and regional Tasmania units are selling quick and at big profits

The city of Hobart has again seen a very high rate of profit making sales with 97.2% of resales making money for their vendors in the last quester of 2020. The rate of profit making sales increased further over the December quarter, up from 96% in the three months to September, the CoreLogic pain and gain report noted. The lowest typical hold period associated with a profit making sales across the nation was across regional Tasmanian units, where the median hold period on a profit-making sale was just 6.7 years. The report noted that in the 6.7 years to December 2020, regional Tasmania unit values increased around 40%, compared to an increase in unit values across the Australia-wide market of approximately 7%. Hobart continued as the most profitable capital city across Australia in terms of the portion of resales with 97.2% of observed resales making a nominal gain in the December 2020 quarter, up from 96.7% in the three months to September. Hobart houses saw a slightly higher rate of profit making sales (97%) than units (95.2%) in the December quarter. It was 97.7% in the rest of Tasmania for houses and 96.2% for rest of Tasmania units. "Interestingly, the rate of profit making unit sales increased 80 basis points in the quarter while the portion of unit profit making sales actually declined 80 basis points," the report noted. Each local government area of Hobart saw a high level of profitability in the December quarter, ranging from 93.3% across Sorrell, to 98.3% across Brighton. Hobart has seen a renewed surge in values off the back of the cash rate reduction in November, and will likely see continued increases in profitability through the March 2021 quarter, CoreLogic forecast. Eliza Owen, Core Logic’s Head of Research noted the lowest incidence of profit making sales across the capital cities was across Darwin, where 51.4% of properties sold for a loss.