According to the latest Hotspotting Price Predictor Index, Adelaide and Hobart have leapt ahead of other major capital cities, becoming potential hotbeds for property price growth due to rising transaction numbers.
The report (authored by specialist researcher and writer Terry Ryder) revealed that 47 suburbs in Adelaide had rising sales activity. In contrast, the number of suburbs with a lift in sales had dropped in Melbourne (33) and Brisbane (29).
“There have been areas in Adelaide that have had double digit growth in median prices in [the] last 12 months on the back of rising sales activity…now in terms of the number of suburbs with rising markets [Adelaide] actually is the number one city,’’ said Ryder.
Other capital cities haven’t fared so well. Beleaguered by economic woes, growth markets have all but vanished in Perth. Only the suburb of Byford recorded transaction numbers which were “steadily rising”.
Sydney didn’t fare too well either, with only six growth markets in the city. Similarly, Darwin experienced a drop in sales numbers, with only two suburbs posting growth.
In contrast, the Tasmanian markets were strong. Fueled by growing demand, property prices have risen steadily in the cities of Hobart, Launceston, and Devonport. “Sales activity picked up in Tasmania last year and maintained highly consistent sales levels throughout 2015,’’ the report said.
“Hobart is doing well. [Though] the Tasmanian economy has improved, it has still got a way to go but it is definitely better than it was and also investors are to a certain extent looking at Hobart and noticing it has got the cheapest prices, the lowest vacancies and the highest rental yields among the capital cities so its prices are very attractive.’’
Ryder noted that when investors were polled about the cities they were most interested in targeting, Hobart emerged at the very top.
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