Hobart’s property prices are predicted to continue to surge over the next few years.

A NEW home prices forecast says growth in Hobart will be among the best in the nation for several years.

And it could put the heat on the major parties to ensure they have strong housing policies leading into the March State Election, experts say.

QBE’s Australian Housing Outlook Report, released today, tipped Hobart house prices to grow by nearly 11 per cent between 2017 and 2020.

Only Canberra houses (16.3 per cent) were expected to increase by more than Hobart houses (10.8), which would take Hobart’s median house price to $470,000.

The report singled out Hobart as the clear leader for unit values, with its forecast growth of 8.7 per cent far larger than the next biggest growth prediction of 3.2 per cent (Adelaide).

Real Estate Institute of Tasmania president Tony Collidge said Hobart residents could expect strong price growth for the next few years.

“At that point the community may be screaming out for more housing. Hopefully whoever is in power will have a plan in place to ensure there is accommodation available for those that want to buy here,” he said.

“It could be one of the biggest issues both parties will need to look at ahead of the next election.”

QBE Lenders’ Mortgage Insurance chief executive Phil White.

Real Estate Institute of Tasmania president Tony Collidge.

QBE Lenders’ Mortgage Insurance chief executive Phil White said Hobart usually captured 40 to 50 per cent of Tasmania’s population growth, but during the past five years it had accounted for 70 per cent of state growth. He said this was indicative of Hobart’s strong economy.

Mr White said these conditions underpinned house prices, and helped to drive Hobart’s home values growth.

“With the challenges in Sydney and Melbourne’s markets, Hobart is a smart lifestyle choice for people that are happy to move interstate,” he said.

QBE’s report noted Hobart had an “affordability advantage” over the other capital cities with the nation’s lowest median house price.

Mr White said Tasmania’s food, wine and tourism industries offered a strong growth opportunity for the state.

Mr Collidge said REIT figures showed local buyers far outweighed interstate buyers, although experts regularly pointed to “mainland immigrants” as the market’s driver.