Hobart is one of the world’s top 20 places for property growth, proving itself to be a hot spot for buyers, according to realestate.com.au.
The latest Global Residential Cities Index by Knight Frank showed that Tasmania's capital finished in the 17th spot, with 9.6% growth in the past 12 months.
Hobart's rank was higher by 83 points than Canberra, which placed 100th with 1.8% growth. Adelaide was at the 103rd spot, followed by Brisbane (120th), Perth (133rd), and Sydney (149th).
Sydney was deemed one of the poorest performers. The capital's prices fell 7.8% in the previous year.
On the other hand, population growth and a cooler climate have been driving Hobart's growth over the past 12 months, according to Mike Speakman, an agent from Petrusma Property in Hobart.
"While prices have started to level off this year, Tasmania is proving popular with pre-retirees, young families and professional couples, particularly those working in the medical sector," said realestate.com.au.
Nearly half of the agency's inquiries are from interstates such as Sandy Bay, Battery Point, West Hobart, and North Hobart.
“Tassie has been rediscovered, it has just become such a desirable place to live. A common thread is people looking for a cooler climate, particularly those aged in their 50s on the verge of retiring, who say they just cannot stand the heat anymore in Sydney and Brisbane. They are finding the summers oppressively hot and these are people who have lived there for their whole lives," Speakman said.
The market slowdown, though, is not exclusive to Australia, according to Knight Frank.
Seventy-nine percent of countries logged price increases during the past year, but the number is down from 87% recorded in 2017.
Major world cities including London, Dubai, Moscow, Auckland, and Geneva all posted a decline in mainstream prices in 2018.