Momentum shifts in Aussie property market
Hobart has become the country's new booming property market.
New figures from the Australian Bureau of Statistics show dwelling prices in Hobart rose faster than any other capital city in 2017, up 13.1% for the year.
Melbourne saw the second-fastest house price growth at 10.2%, followed by Canberra at 5.7%.
"Home prices in Hobart are now the fastest growing of any capital city. Sydney has consistently topped the list in recent years, but has since slipped to fourth place in terms of growth," HIA senior economist, Shane Garrett, said.
Sydney saw more modest 3.8% growth, followed by Adelaide at 3.6% and Brisbane at 2.1%.
Meanwhile, dwelling prices fell 1.7% in Perth and 6.3% in Darwin over the year.
Garrett said Hobart's reversal of fortune was not entirely unexpected.
"History shows that house prices eventually grow fastest in the markets which have seen low growth in the recent past," Garrett said.
"Tasmania's capital had been stuck in the doldrums only a couple of years ago. Hobart's impressive turnaround will give hope to other markets around Australia," Garrett said.
While cities such as Adelaide, Perth and Darwin have seen weak prices in recent years, Garrett argued they could see similar turnarounds.
"People forget that between 2002 and 2012, Sydney home prices grew more slowly than any other capital city. History shows how this can turn around in a short space of time."
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