“There has been a major change in the pattern of house price growth across Australia’s major cities” said HIA Senior Economist, Shane Garrett.
The ABS released its figures on home prices earlier for the December 2017 quarter.
“Home prices in Hobart are now the fastest growing of any capital city. Sydney had consistently topped the list in recent years but has since slipped to fourth place in terms of price growth.
“Tasmania’s capital had been stuck in the doldrums only a couple of years ago. Hobart’s impressive turnaround will give hope to other markets around Australia. The home building industry in cities like Adelaide, Perth and Darwin have been hurt by weak prices over recent years.
“History shows that house prices eventually grow fastest in the markets which have seen low growth in the recent past.
“People forget that between 2002 and 2012, Sydney home prices grew more slowly than any other capital city. History shows how this can turn around in a short space of time, concluded Shane Garrett.
During 2017, dwelling prices rose fastest in Hobart (+13.1 per cent), followed by Melbourne (+10.2 per cent) and Canberra (+5.7 per cent).
Home price growth was more modest in Sydney (+3.8 per cent), Adelaide (+3.6 per cent) and Brisbane (+2.1 per cent) over the course of the year.
Dwelling prices continued to fall in Perth (-1.7 per cent) and Darwin (-6.3 per cent) during 2017.