The Australian Bureau of Statistics (ABS) Index of Established House Prices found property values in Hobart, Tasmania increasing by 0.8 per cent in the December quarter, according to the Housing Industry Association (HIA).
Tasmania executive director Stuart Clues said this bucked the general trend in the Australian property market, which saw a national drop of one per cent across capital cities.
"Lower interest rates will feed into an improved environment in 2012, although we won't see a return to widespread strong house price growth this year," Mr Clues said.
He added that the property market in Tasmania is as strong as it has ever been, with free capacity for builders, falling interest rates and strong rental demand making the area a haven for investors.
State premier Laura Giddings recently praised the development of a $350 million (£240 million) residential project on the island, which she called a sign of confidence in the Tasmanian economy.
Posted by Steve Douglas
