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Look what’s happening in our capital city property markets – Perth and Hobart

This is the third in our series that looks at the current state of play in the property markets of each of our eight capital cities.  Today we feature Perth and Hobart.

You can read my previous blog on the property markets in Sydney & Melbourne here.  I also discussed Brisbane and Adelaide here.

I will wrap up the series with Darwin and Canberra in a future blog


Perth

Just over 1.7 million people live in Perth.

Its population is projected to grow by about 38,000 new residents each year over the next decade.  The city holds just over 726,000 private dwellings, of which three out of four (78.6%) are detached, with a further 9% being apartments and one in eight being semi-detached in nature.

The median house price is just under $560,000.  Attached dwellings average about $460,000.  House prices are rising at present, albeit very slowly, at about 0.7% per annum.  Apartment values are rising only minimally higher at around 0.8% per annum.  New property prices are rising faster, up 1.9% on this time last year.

There are just over 1,000 properties for rent across the city, which equates to a 0.6% vacancy rate.  Average gross rental yields range from 4.5% to 4.8% respectively for detached houses and attached product.  Just over 90% of Perth’s renters pay less than 30% of their income on rent.

Just under 30% of the city rents their accommodation, whilst another 30% own their homes outright and 40% have a mortgage.

There are 2.6 people on average per dwelling.  Just under a quarter of the city’s residents live alone.  Another 28% live as couples without children at home.  Just over 40% of Perth’s homes have children living in them.  Four-fifths of the city’s dwellings have three or more bedrooms.

The time it takes to sell a property in Perth has remained fairly steady over the previous quarter, currently averaging 128 days.  Most established homes are being discounted to help make a sale, but the average private treaty discount rate is about 6%.  At present there are just over 14,000 houses and 3,000 attached dwellings for sale across Perth, which is just on 15% less than late 2011- an encouraging sign for things to come.

And on that note, Perth’s dwellings prices are expected to increase by around 7% per annum over the next three years.

And did you know that 60% of Perth residents were born in Australia and that 10% of the city’s workers travel to work by public transport.  Close to 22,000 established houses sold and settled in Perth over the past twelve months.

Hobart

Just over 200,000 people live in Hobart.

Its population is projected to grow by about 2,000 new residents each year over the next decade.  The city holds 94,000 private dwellings, of which four out of five (82%) are detached, with a further 10% being apartments and one in sixteen being semi-detached in nature.

The median house price is just under $326,000.  Attached dwellings average about $318,000.  House prices are falling at present, at about 1.2% per annum.  Apartment values, on the other hand, are showing a lot more grunt, rising to the tune of 14.3%** per annum.  New property prices are falling, down 4.3% on this time last year.

There are just close to 632 properties for rent across the city which equates to a 2.3% vacancy rate.  Average gross rental yields range from 5.2% to 4.5% respectively for detached houses and attached product.  Just on 92% of Hobart’s renters pay less than 30% of their income on rent.

Just under 30% of the city rents their accommodation, whilst one-third own their homes outright and 35% have a mortgage.

There are 2.4 people on average per dwelling.  Almost one quarter of the city’s residents live alone.  Just over 25% live as couples without children at home.  Around 40% of Hobart’s homes have children living in them.  Just under three-quarters of the city’s dwellings have three or more bedrooms.

At present there are just over 3,600 houses and 676 attached dwellings for sale across Hobart which is 22% more than late 2011.

And on that note, Hobart’s dwellings prices are expected to increase negligibly by up to 0.5% per annum over the next three years.

And did you know that 82% of Hobart’s residents were born in Australia and that just 5% of the city’s workers travel to work by public transport.  Just under 3,000 established houses sold and settled in Hobart over the past twelve months.

**  We question the validity of this figure.  Most likely it reflects what has been selling i.e. new apartments, against a recently settled older property sales set.  The Hobart apartment market is quite small and is influenced more than many other capitals by its current sales sample.

Data sources:  ABS 6416.0 & ABS 3101.0; 2011 Census; BIS Shrapnel; Australian Property Monitors; RPData-Rismark & SQM Research.

…………

Michael Matusik is the director of independent property advisory Matusik Property Insights and writes the  Matusik Missive which is free, however, reprinting, republication or distribution of any portion of this material, or inclusion on any website, is strictly prohibited without the written permission of Matusik Property Insights and may incur a charge.

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Michael is director of independent property advisory Matusik Property Insights. He is independent, perceptive and to the point; has helped over 550 new residential developments come to fruition and writes his insightful Matusik Missive


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