While dwelling values fall across the nation, prices in Hobart are steadily rising.
Hobart has been making headlines with rising house prices and a growing reputation as a destination for Australians to get away from the hustle and bustle of the mainland for the culinary delights and natural splendour of Hobart.
Tasmania left the other capital cities in the dust, with growth rates at 12.7 per cent. Meanwhile, the volume of stock available for sale in Hobart dropped buy 30. 7 per cent, according to data from CoreLogic.
President of the Real Estate Institute of Tasmania (REIT) Tony Collidge, told WILLIAMS MEDIA home owners are essentially delaying selling their homes in the hopes that prices will continue rising.
"This is a situation where you've got growing demand but very little in the way of stock available for sale. I expect this will be the last year of significant growth for the region, despite some forecasters predicting otherwise," he said.
The high demand for real estate has driven up rents, which has increased by 12.2 per cent, making it difficult for first-time home buyers to enter the market.
Tony Collidge told WILLIAMS MEDIA now is not a great time to be a tenant.
"With far fewer jobs and a much smaller economy, these increasing values makes it extremely hard for first-time buyers to enter the market," he said.
"We've got a growing population, an influx of university students, a booming tourism market and increased demand for social housing. These demands on the state to service all these housing needs is nearing breaking point," he said.
Despite the increases in house prices, Tasmanian property prices seem quite minimal in comparison to those in Melbourne and Sydney, making it an ideal option for those priced out of the mainland capital city markets.
"Tasmania is a very desirable location to visit, live and study. It's a beautiful place to live," he said.
This sentiment is echoed by Knight Frank Hobart agent, Pam Corkhill who told WILLIAMS MEDIA more people are choosing to invest in the area.
"As an agent, the feedback I'm getting from buyers is that Hobart is a fantastic place to live, with house prices quite minimal in comparison to some of the major cities. It's a quick ferry ride from the mainland and such a stunning part of Australia to live and work in," she said.
Read more about Tasmanian property market:
Hobart leads price gains in December quarter: ABS data