Prices heading north in one capital and south in another

Prices heading north in one capital and south in another

13 January 2015 by Staff Reporter 0 comments

Australia’s weakest capital city is set to continue its poor performance in 2015, according to a leading market commentator.

SQM Research managing director Louis Christopher said Darwin is currently the weakest capital city market, with climbing vacancy rates as a particular problem.

“Darwin is a classic example of what I call a ‘shallow’ housing market. 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,” he said.

Mr Christopher also put Hobart in the spotlight, but said the outlook for the city was more positive than for Darwin.

“Yes, I understand that it has historically been a weak economy, has experienced weak-to-negative population growth and, subsequently, a weak housing market,” Mr Christopher said.

“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 said the rental market in Hobart was becoming increasingly tight for renters and the city was transforming into a landlord’s market.

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2016

With a combined sales volume of $13 billion in 2016, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
William Phillips on how agents can expand their database and grow their business

In this episode of Secrets of the Top 100 Agents, host Tim Neary is joined again by William Phillips to discuss the real estate database and...

View all podcasts

Are dodgy agents being punished enough?

Yes (8.6%)
No (55%)
Only in some states (2.3%)
Not all dodgy agents are being found out (34.1%)

Total votes: 220
The voting for this poll has ended on: April 15, 2017
upcoming events
REB Awards
Sydney The Event Centre 12 Sep
REB Awards
Sydney The Event Centre 12 Sep
Melbourne The Event Centre 14 Oct
Brisbane The Event Centre 18 Dec
View all events
Do you have an industry update?