Powered by MOMENTUM MEDIA
realestatebusiness logo

Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

rpm logo latest

Weakest city to continue downturn

By Staff Reporter
05 January 2014 | 1 minute read

Australia’s 'worst capital city market' is set to perform poorly again in 2015, according to a leading market commentator.

Advertisement
Advertisement

SQM Research figures show Darwin is currently the weakest capital city market – citing climbing vacancy rates as a particular problem.

“Darwin is a classic example of what I call a ‘shallow’ housing market, said SQM property analyst Louis Christopher. By that I mean there is not a lot of market volume and depth, and therefore prices can rapidly swing one way or the other.” 

“Right now it’s swinging south, primarily due to the commodities downturn.”

Mr Christopher said the downturn is ongoing, with “no signs of it stopping any time soon”.

He also put Hobart in the spotlight, but said the outlook for Australia’s most southern capital was a little more positive.

“Yes, I understand that it has historically been a weak economy, has experienced weak-to-negative population growth and subsequently a weak housing market,” he explained. “Taking all this into account, we think prices are well undervalued by historical standards and are primed to move upwards from here.

“I think the lower Australian dollar helps the Tasmanian economy on many levels. Right now, the market indicators suggest there is movement.”

Mr Christopher added that Hobart's rental market was becoming increasingly tight, with the climate increasingly favouring landlords.

Weakest city to continue downturn
Moneydowndrain
lawyersweekly logo

ABOUT THE AUTHOR


Listen to other installment of the Real Estate Business Podcast
Do you have an industry update?

top suburbs

12 month growth
Travancore
49.78%
Timboon
49.57%
Dolphin Point
49.51%
Nyah West
49.42%
Preston Beach
49.29%
Newington
48.97%
Killcare Heights
48.89%
Wundowie
48.77%
Homebush
48.44%
Glenside
48.28%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.