The Tasmanian capital is set to be Australia’s “star performer” for housing in 2018, according to Mozo’s head of referrals.
Mozo’s Steve Jovcevski has predicted that Hobart’s housing market will continue to flourish, rising by up to 10 per cent next year.
“Hobart posted a whopping 12 per cent growth in the past year and is expected to experience similar growth in 2018,” Mr Jovcevski said.
“Compared to other Australian metropolitan centres, Tasmania boasts some of the country’s most affordable housing.”
Mr Jovcevski claimed that low vacancy rates and high rental demand will lure investors into the Tasmanian capital’s housing market. He also predicted further improvement in the capital’s economy.
“The local economy continues to improve and lifestyle migration is expected to be a major factor in driving up house prices,” the property investment expert added.
However, according to Mr Jovcevski, Sydney market’s growth prospects are grim. He said that it will be the only Australian capital to experience negative growth, with a predicted decline of 5 per cent.
“The Sydney housing market plateaued in 2017 and will drop slightly over 2018, but we’re unlikely to see a dramatic bubble burst.”
He continued that lower clearance rates and “higher than average housing supply” were signs of the Sydney market’s continued decline, and he noted that clearance rates could be lower than reported.
“Clearance rates could continue to be low in Sydney due to rampant under-reporting of sale prices by agents. It is possible that actual clearance rates are even lower than reported.”
Mr Jovcevski also said that he expects the Sydney market to “pick up” in autumn before slipping again to unusually “tough” conditions in spring.
There could also be 5 per cent to 7 per cent property market growth in Melbourne, driven by population growth and increasing appetite from first home buyers.
According to Mr Jovcevski, Canberra’s property market will also experience growth of 7 per cent, spurred by low vacancy rates, population migration and a strong local economy.
Brisbane’s affordable housing is also expected to drive population migration, which Mr Jovcevski said would materialise in housing market growth of 5 per cent.
Additionally, the Mozo property analyst forecast moderate growth of 2 per cent to 4 per cent in Perth’s property market, following the slight strengthening of the local economy.
[Related: Sydney drags down national home values]