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Momentum shifts in Aussie property market

Posted: 21 March 2018 1:36 pm
News

house bank balanceHobart 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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Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
St.George Basic Home Loan - LVR 60% to 80% (Owner Occupier, P&I)
2.64%
2.66%
$0
$0 p.a.
80%
Up to $4,000 refinance cashback.
A competitive variable rate loan from St.George. Refinancers borrowing $250,000 or more can get up $4,000 cashback for their first application (Other terms, conditions and exclusions apply).
Westpac Flexi First Option Home Loan - Basic Variable Rate (Owner Occupier, P&I)
2.29%
2.72%
$0
$8 monthly ($96 p.a.)
95%
Up to $3,000 refinance cashback.
A flexible and competitive variable rate loan. Eligible borrowers refinancing $250,000 or more can get $2,000 cashback per property plus a bonus $1,000 for their first application. Other conditions apply.
UBank UHomeLoan Variable Rate - Discount Offer for Owner Occupiers, Variable P&I Rate
2.49%
2.49%
$0
$0 p.a.
80%
Enjoy flexible repayments, a redraw facility and the ability to split your loan. Plus, pay no application or ongoing fees.
Suncorp Back to Basics Home Loan - Better Together Special Offer $150k+ LVR ≤ 80% (Owner Occupier, P&I)
2.68%
2.69%
$0
$0 p.a.
80%
$2,000 to $3,000 refinance cashback.
Get a competitive variable interest rate with no application fee or ongoing fees. Refinance to an eligible Suncorp loan and get a cashback of $2,000 or $3,000, depending on your loan amount. Other conditions apply.
Athena Celebrate Home Loan - 60% LVR  Owner Occupier, P&I
2.39%
2.39%
$0
$0 p.a.
60%
A very low variable rate for home buyers with 40% deposits or equity. This rate takes effect from 30 September for new and existing customers. You can get this rate if you apply today.
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