A Review of Key Indicators Across Major Australian Cities
Across the greater Australian cities, Hobart continued to experience the
highest annual capital growth in 2019. Apartments saw growth of 19% while houses grew by a further 15.6%. Over recent years, Tasmania’s capital city has lured not only tree-changers from the mainland attracted to the lifestyle but has grown its university student base by more than 60% over the past three years. As a result, Hobart also saw the highest growth in rents in 2019 of all the greater cities, recording a rise of 9.5% in the weekly rent for houses and 7.9% for apartments. Although this may slow to a more sustainable pace, given a 30 bps rise in the vacancy rate in late 2019.
Greater Melbourne has remained resilient in recovery mode following the relaxing of buyer lending restrictions, with apartment capital values in the last quarter of 2019 growing by 5.6% and houses by 5.0%— to record total 2019 growth of 12.2% and 8.7% respectively. Greater Melbourne upholding the strongest annual population growth of all Australian capital cities, supported this performance.
In Q4 2019, Sydney wasn’t too far behind Melbourne for capital growth with houses rising 5.7% and apartments by 4.3%. Although some pockets of oversupply in the middle and outer ring suburbs have elevated vacancy above 3%. This has meant rents fell 2.8% for houses, and 3.8% for apartments throughout 2019.