Hobart Highlight Report Q1 2013
The Tasmania residential property market as a whole has experienced fluctuation over the past five year period, in particularly since 2009 with the Australian government introducing record low interest rates and stimuli packages aiding home-owners entering the market.
Tasmanian applications for housing finance declined 3.6 per cent in 2012 and new home construction similarly saw continual decline, with dwelling approvals down 25 per cent, a trend expected to continue as house price levels adjust downwards.
Nationally, the Tasmanian market is looking weak and is presently only experiencing +0.2% population growth in the 2012 calendar year, compared with the average +1.6% growth seen nationwide. Hobart, within an Australian Capital Cities market remains to be underperforming as the only Australian Capital City to see a fall in home values at the period ending December 2012.
Tasmania entered Q1 2013 with again the highest rate of unemployment nationwide at 7.3 per cent, a rate comparable to various troubled international economies. Similarly, the national unemployment rate, not including Tasmania, remains around 5.8 per cent with increasing unemployment in South Australia and the Australian Capital Territory recently affecting the figure.
Considering the flailing economy, low transaction numbers and no identifiable source of growth in Tasmanias short term future, the outlook certainly looks to be tough. This being said, a number of positive outcomes and forecast can be seen within the sub-markets of Hobart and this Highlight Report will look to focus on Hobarts immediate and long term economic future.