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For property purchasers looking for a safe bet, there is one Tassie suburb that should stand out from the rest.
Hobart Eastern Shore destination Lindisfarne has been highlighted in a national report as one of the most consistent property markets in Australia.
Hotspotting’s Price Predictor Index for Autumn put a spotlight on the suburb’s steady buyer demand, with 22 quarters in a row where its sales volume never dipped below 30 transactions and sometimes pushed towards 50 sales in a three-month span.
Over the most recent quarters, Lindisfarne posted 30, 39, 38 and 34 sales, the report said.
Its median home price sits at $630,000 with 7 per cent annual growth and 6 per cent long-term growth.
Hotspotting managing director Terry Ryder said locations that deliver consistent demand are among the best markets for investors as “steady buyer activity over time tends to produce good price growth”.
Fall Real Estate agent Katrina Arkley said people were attracted to the Lindisfarne lifestyle for a number of reasons.
“Lindisfarne offers good schools, access to the city, airport, and northern suburbs via the Bowen, it has sunny aspects and beautiful views,” she said.
“It is also relatively more affordable than areas like New Town, West Hobart and Sandy Bay.
“There has been a shift back to a normal market in general. However, properties that are selling well in Lindisfarne include units and townhouses close to the Village, and properties that are modern.”
“New land and new houses are hard to come by,” he said.
Petrusma Property sales manager David McLeod described Lindisfarne as a very established suburb with minimal development.
“There is a steady transition of people from first home to family home, then last home.”
Mr McLeod said the last 12 months or so had seen a reduction in prices and activity.
“However, the Lindisfarne market tends to be a little more moderate in its changes, we don’t see the extreme growth and extreme decline that others seem to experience,” he said.
“Lindisfarne still feels undervalued to me, it offers so much for the money.”
Hotspotting’s research showed that while Hobart remained solid, regional Tasmania had transitioned from hot property to one of the nation’s weakest markets in terms of sales activity.
Of the 52 regional locations, 21 Tassie towns are declining and 24 were categorised as plateau markets.
Primarily found in the top end of the Hobart market, only six suburbs were categorised as declining markets.
Across the state, markets with rising sales activity include Blackmans Bay, Chigwell, New Town, Newstead, Oakdowns, Old Beach, Ravenswood, Sorell, South Hobart and West Launceston.
Meanwhile, Property Investment Professionals of Australia board member and former chair, Peter Koulizos, has crunched the numbers to determine which capital city had the most established median house price growth since 2002 — and it wasn’t Sydney or Melbourne.
The Adelaide-based academic said ABS data placed Hobart at No.1.
Mr Koulizos said Hobart was the “star performer” by a country mile, which goes to show that smaller cities as well as major regional areas can be sound property investment locations.
Mr Koulizos’ analysis found that the median established house price in Hobart was 5.9 times higher in December 2022 than it was in March 2002, with its median price soaring from $123,300 to $727,000 over the period.
The second-place getter was Adelaide, with the median house price 4.1 times higher now than it was 20 years ago, increasing from $166,000 to $680,000.
Mr Koulizos said every city has times when prices fell, rose, or flatlined.
“We always encourage buyers to purchase property as a long-term investment and to do their best to ignore any temporary impacts on median prices,” he said.
Originally Published: Jarrad Bevan | The Mercury | 21 April 2023