Hobart is approximately 1,696 square kilometres in size with a population of approximately 206,000. The predominant age group in Hobart is 15-24 years. Households in Hobart are primarily childless couples and are likely to be repaying between $1800 - $2400 per month on mortgage repayments. In 2006, 39.8% of the homes in Hobart were owner-occupied compared with 30.3% in 2011. (source: Australian Bureau of Statistics)
Traditional agent commissions in Hobart
Agent commissions in Hobart are currently the highest in Australia with no sign of this changing anytime soon. To sell a property in Hobart with a traditional agent you can expect to pay around 2.82% to more than 3% plus GST on average. When attempting to sell with a traditional agent we recommend attempting to negotiate commission and fees prior to listing.
On top of a commission, if you sell with a traditional agent, you would also generally pay additional advertising fees which can increase your total cost significantly. All up, your total cost is likely to be $14,000 - $20,000+ if you decide to sell with a traditional agent as opposed to as low as $694, if you sell your home yourself with the help of PropertyNow.
The real estate market in Hobart
As Tasmania is a beautiful and popular area, especially with tourism, it’s no surprise home values are where they are. Tourism increases both investment from overseas buyers and buyers within Australia, with the industry booming currently within this state.
Dwelling values in Hobart had a large jump between 2017-2018 showing a strong annual dwelling growth rate of 12.7% which is the highest for any Australian city. Things have continued to improve coming into 2020 with a growth rate of 4.2% over the last 12 months. As of January 2020 median dwelling price in Hobart is $474,186 with median house values at $509,177 and median unit values of $384,999, higher than previous years with a steady annual growth of 3.4% over the past decade.
Housing demand is looking strong and holding with rentals yields higher than some other capitals, with weekly rent sitting at $410 for houses and $450 for units. The gross rental yields are still climbing, up 4.9% for houses and 5.2% for units as of January 2020.
The average number of days on the market for sale properties in Hobart is fairly low by the standard of other cities - with 24 days on the market being the average for January 2020 (longer than the average of 11 days on the market back in 2018.)
Coronavirus and the Hobart property market
Property prices in Hobart during the Coronavirus fell by -0.1% during the month of April while the pandemic was at its height. This slight fall during this time was attributed mainly to employment, and the industry sectors most heavily impacted by COVID-19, such as accommodation and hospitality services which make up almost 13% of employment in that region.
Hobart property prices were up for the quarter though, growing 0.59% as of May 2020, with an annual growth of 5%, which was a step backwards from the March figures which showed and annual growth rate at 9.3%.
Selling property in Hobart without an agent
If you are in Tasmania, particularly Hobart, you need to know the specific laws that cover the buying and selling of properties. One law is the ‘Conveyancing and Law of Property Act 1884’ which applies to such circumstances. One of the requirements based on the above-mentioned law is that the selling or the intent to sell should always be in writing. Another provision explains the land sold that is held by lease:
“Where land sold is held by lease (not including under-lease), the purchaser shall assume unless the contrary appears, that the lease was duly granted; and on production of the receipt for the last payment due for rent under the lease before the date of actual completion of the purchase, he shall assume, unless the contrary appears, that all the covenants and provisions of the lease have been duly performed and observed up to the date of actual completion of the purchase." - Section 3.3”
A further provision that is important to be aware of, talks about the inclusion of conveyancing. In Tasmania, conveyancing is a must and part of the process of buying/selling a property. Section 6 states what is included in a conveyance of land.
Knowing what different rules and provisions are relevant to your own state, when it comes to purchasing or selling a property in Hobart is an important part of the process and one we’re here to assist you with.
By not paying an agent a hefty commission you give yourself more room to move on the sale price, giving yourself an advantage against similar properties in the market. You can also know for you sure that enquiries are being responded to as quickly as possible and are properly followed up. If you're not sure of how to price your property, we can provide you with a detailed breakdown of sale statistics for Hobart (or a specific suburb of Tasmania), as well as an estimated value of your property itself.
Review of private selling in Hobart
Amin Bhai sold his property privately via the help of PropertyNow. Amin wrote "Dear Jasmyn, Jesse, Thank you for your prompt, comprehensive assistance at all stages. You made PropertyNow an efficient, user-friendly, value-for-money vehicle for divesting my properties with total control, especially appreciated during difficult personal circumstances. Greatly appreciate this vehicle, the facilitators and the value. Many thanks Amin Bhai."