In the ANZ’s latest report, Australian housing: a strong 2021, the bank’s economists forecast a buoyant year ahead for the Hobart housing market.
Alongsideand Brisbane, the southernmost capital’s forecast was for more than 9 per cent growth.
ANZ economists Felicity Emmett and Adelaide Timbrell say an early COVID-19 vaccine rollout and the resulting lift in sentiment may drive “larger price gains than we anticipate”.
“That said, we think regulators would be quick to step in with macro-prudential measures if the market looked to be overheating,” the economists said.
Felicity and Adelaide said Hobart’s property market – alongside Adelaide, Darwin and Canberra – had maintained an upward pricing trend through the pandemic.
They said house prices were turning higher, helped by lower interest rates, substantial government stimulus and a bounce in confidence as the second wave of the pandemic comes under control.
“These factors seem to be offsetting weak fundamentals of high unemployment, very low population growth and a fractured rental market,” the economists said.
In the latest NAB residential property survey, the forecast for Hobart was also strong, with a nation-leading 5.1 per cent growth expectation next year, followed by 7.1 per cent and 7.4 per cent in the following years.