Hobart may soon lose its title as the cheapest capital city housing market in Australia

Auscape/UIG via Getty ImagesSalamanca markets on a Saturday morning with Mount Wellington beyond.

Hobart has long been Australia’s cheapest capital city housing market with values sitting well below the levels seen in the mainland capitals.

However, that could about to change, as seen in the chart below posted Cameron Kusher, Research Analyst at CoreLogic, on Twitter today.

CoreLogic, Twitter

With house prices in Australia’s southernmost capital soaring by 13.6% in the year to April, it’s meant the median house price in Hobart, at $452,935, is now less than $10,000 below the median price in Adelaide, South Australia’s capital.

Somewhat remarkably, the median price in Hobart is now only $25,000 below the current median in Perth, a market that was absolutely flying at the peak of Australia’s twin mining booms.

On the current trajectory, Hobart prices could move past both Adelaide and Perth in the not too distant future.

Relative affordability to Australia’s other capital cities, especially Sydney and Melbourne, along with a booming tourism industry and firmer population growth, are all factors that have contributed to demand outstripping supply in Hobart’s housing market in recent years.

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