A landmark, joint study by Aussie Home Loans and CoreLogic has revealed Hobart house values have risen at an annualised rate of 6.5 per cent or $14,400 since 1993.
At the same rate of growth over the next 25 years, Hobart’s median house value could rise from today’s $452,900 to reach $2,203,000 in 2043.
The Aussie/CoreLogic ’25 years of housing trends’ report found the typical Hobart apartment value has risen at an annualised rate of 5.5 per cent or $10,400, reaching their current median value of $353,300. In 25 years, the median unit value in Hobart could be $1,339,000.
Chief Executive Officer of Aussie, Mr James Symond, said “Our report reveals that over the long term, residential property in Hobart has been a strong performer and I believe it will continue to perform well.”
The percentage of annual household income in Hobart required to service a loan – at an 80 per cent loan to value ratio – has jumped from 18.6 per cent to 30.6 per cent since 2001.
Mr Symond said “With average mortgage rates currently close to their record low levels of the 1960’s, loan serviceability levels have actually improved in recent years.”
The report also revealed the top 20 suburbs in Hobart for value growth over the last 25 years, with North Hobart the star performer.
North Hobart has experienced extraordinary growth in its median house value from $95,000 to $680,500, followed by South Hobart which lifted its median house value from $96,000 to $615,000.
These performances are well above the national average, which has seen values rise 412 per cent since 1993.
“If the changing face of residential property and staggering growth of technology we have seen over the last 25 years continues, it’s likely the next 25 years will produce even greater change,” concluded Mr Symond.
To view the full Aussie/CoreLogic 25 years of housing trends report, visit www.aussie.com.au/25years or contact an Aussie Broker for a free copy.