Real estate prices are expected to rise again in 2022, but at a slower rate than 2021. However, the highest performing suburbs may not be found in the largest capital.
Price increases in Sydney and Melbourne are expected to be one of the weakest 4-7% cities in the Australian capital. This follows months of blockades, higher real estate prices compared to other parts of the country, and slower migration abroad.
Perth is still weak, with prolonged border closures blocking interstate migration and reducing housing demand. Next year, prices are expected to rise by only 3-6%.
Hobart, on the other hand, is the capital with a projected growth of 9-12% in 2022.
This is due to several factors.
View of the sunset from Mount Wellington in Hobart.
First, unlike other states, Tasmanian life has been almost as usual for the past two years, with few blockades and restrictions.
Second, the city offers three important attributes that Australians are looking for. It’s affordable, sea changes, and space. These are attributes that are difficult to obtain in Sydney and Melbourne.
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Third, Hobert offers investment opportunities. Investors are flocking to the city as real estate prices are low and growth is expected to increase over the next few years.
However, with even stronger price increases expected in Hobart, which suburbs are most likely to benefit?
Hard to predict, the following suburbs have shown the strongest performance in the past year.
In Lena Valley, the median unit showed the highest growth. The city center and beautiful views are just a short drive away and you can enjoy the atmosphere of the suburbs.
Sandy Bay and Bellerive, where home prices have risen sharply, boast similar characteristics to those who are attracted to the seaside lifestyle.
Properties in Old Beach, Berrydale and Rosetta, north of Hobart, have also increased in value throughout the year.
Price increases in Hobart and Brisbane are expected to remain strong as demand continues to shift from Sydney, Melbourne and Perth.