While capital cities such as Sydney and Melbourne are still raking in huge numbers when it comes to capital gains, we’ve seen a noticeable increase in the demand for areas in rural Australia. In fact, recent data from CoreLogic RP Data shows that one area in particular, Hobart, has seen far higher growth than many popular mainland cities.
Affordability trumps convenience
Believe it or not, the stats show that Hobart has grown at a higher rate over the past few months than both Sydney and Melbourne. While they’ve tailed behind at 1.2% and 0.8% growth each, Hobart is leading the charge at 1.8% value gains.
What’s really interesting to see, however, is that while Sydney and Melbourne attract people based on commercial opportunity, Hobart offers something completely different. Instead of receiving support from high migration rates and a stable economic climate, it seems that Hobart is top of the affordability game.
Of any Australian capital city, Hobart wins when it comes to value for money. When demand for convenient property close to commercial centres in cities is so high, the price rises dramatically. This means that, for some, locations in rural Australia prove to be far more cost-effective. When comparing the numbers, the average house price in the Tasmanian capital is $341,500, whereas the closest price tag on any other metro city started at $421,500.
With numbers as plain as that, it starts to become easy to see why more and more people are choosing Hobart. At a more affordable price, young adults looking to start families have a fantastic option to raise their children in one of Australia’s most beautiful areas. With a wealth of housing options available, Hobart has something for everyone, regardless of budget or location preference.
Living the good life
On top of the affordability, Hobart has much more to offer, namely its thriving quality of life ratings. With the increase of flexibility companies are offering employees, an increasing number of people are able to work from home for most of the week. No longer required in the office every day, people are now free to work from home and move further from capital cities to quieter areas with more space.
Taking a look at CoreLogic’s data more closely, the trend isn’t specific to Hobart – smaller areas further from the capital, such as Derwent Valley and Break O’ Day are also reporting booming sales numbers.
It’s because of these lifestyle markets that property prices in Tasmania are on the rise, with Hobart as one of the prime areas. With more and more people trading the desk life for a piece of the good life further from Australian capital cities, it’s no wonder why such a distant area of rural Australia is developing such a high demand.
If you’re looking to make a move to Tasmania, or are simply considering a rural retreat, take a look at our online listings for a rich taste of what the market can offer you.
Follow our blog for more helpful tips and to stay up-to-date on current real estate news.
If you have questions about buying or selling real estate or would like to speak to a real estate agent, contact us today. We’d be happy to offer advice.