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Hobart named fourth-strongest property market in the world

Hobart has been named the fourth-strongest property market in the world, according to the latest Frank Knight Global Residential Cities Index.

The index, which tracks worldwide property prices across major cities, had Hobart in fourth place for the final quarter of 2021 with 33.7 per cent annual growth, behind Istanbul (63.2 per cent), Izmir (58.5 per cent) and Ankara (55.9 per cent).

Most of Australia’s largest cities were at the top end of the list with Canberra in seventh position (30.7 per cent), Darwin in 11th (25.5 per cent), Sydney in 13th position (25.4 per cent), Adelaide at 15th (24.8 per cent) Brisbane in 18th (22.1 per cent), Melbourne at 36th (15.8 per cent) and Perth in at 90th spot (7.6 per cent).

Knight Frank Australia Department Manager Residential Hobart, Mathew Chugg said the Hobart property market’s emphatic growth was thanks in part to its fortunes during Covid.

“The fast growth in the Hobart property market is due to many driving factors that have emerged over the last one-two years,” Mr Chugg said.

“Hobart has been the beneficiary of Covid, with a surge in popularity as many interstate purchasers have looked for more of a regional location to escape lockdowns and avoid restrictions in.

“As the capital city of a small island state, Hobart showed it could move quickly, shut borders and continue to live as normal.”

Mr Chugg said Hobart also benefited over the past 18 months from people being able to work from home.

“The change of working conditions has also had a large impact on the Hobart property market as people can now work from home,” he said.

“It also helps that Hobart is relatively easy to get to from other major cities, being only a one-hour flight to Melbourne and 1.5 hours to Sydney.”

The popular tourist destination also has many lifestyle factors that are attracting people to the city, Mr Chugg said.

“The lifestyle options Hobart has to offer are truly amazing, and we’ve seen an increased awareness of this over the last couple of years,” he said.

“World class food and wine, the most beautiful scenery, great educational options for families – all on your doorstep.

“Within a 30-minute drive, you could be on top of a mountain, on a remote beach or in a rain forest – a lifestyle that carries great appeal in the Australian culture. 

“Hobart must be one of the best places in the world to live, and the market supports this claim with its popularity and population continuing to rise.”

According to Knight Frank, house prices are rising at their fastest rate in almost 18 years, with 140 of those cities tracked seeing prices increase in 2021, up from 122 in 2020. 

Overall, the index grew by 11 per cent in 2021, with cities in the Americas registering the strongest jump, averaging 15 per cent annual growth compared to 11 per cent in the EMEA region and 9 per cent across Asia-Pacific.

Knight Frank believes the upcoming interest rate rises around the world will likely see a reversal of fortunes for many locations with cities riding the upcoming wave of monetary tightening better than national housing markets.

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Rowan Crosby

Rowan Crosby is a freelance journalist specialising in finance and real estate.