Investors’ paradise found? Property experts tip Hobart to outshine Sydney, Melbourne
Properties in Sydney and Melbourne have nothing on Hobart, at least according to some property investment experts, who feel the city's low rental vacancy rates and economic growth make it an investor’s paradise.
According to research conducted by Mozo, Hobart rental vacancy rates are the lowest in the country at 0.5%, beating Sydney and Melbourne’s current average of 1.7% and 1.9% respectively.
“This is five times lower than in August 2012, reflecting an under supply of new buildings and continued population growth with the improvement in the state’s economy, as well as owners holding on to property in inner city Hobart where the population is concentrated,” said Mozo’s property expert, Steve Jovcevski.
Head of Market Research at Buyers Agency Propertyology, Simon Pressley, said its buyers’ agents have observed first-hand price growth of 8 to 10% in Hobart over the past 12 months.
“There wouldn’t have been a living soul who would invest in Hobart back in 2014 when we [Propertyology] first started buying there,” he said.
“We can only see buyer activity further intensifying and forcing stronger growth over the next couple of years.”
According to the most recent ABS statistics on capital city population rates, Hobart grew at its highest rate in five years. Tourists are also flocking to the state, with a visitor arrival rate seeing a 17.7% increase for the year ending in August, more than any other state.
If Hobart is indeed the best capital city to buy property in, Canberra closely follows, with a stable vacancy rate of 1.7%, Mozo data revealed in a blog post last week.
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