In the year to 30 September, Hobart property prices were the fastest growing in the country, rising 14.3 per cent, according to the CoreLogic Hedonic Home Value Index. Hobart prices rose 1.7 per cent in the month of September, and 3.4 per cent for the quarter.

Sydney prices recorded the first monthly decline in 15 months, with prices edging 0.1 per cent lower. Sydney prices are up 10.5 per cent for the year, and 0.2 per cent for the quarter.

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Melbourne property prices were the second-fastest growing for the year to September, rising 12.1 per cent for the year, and gaining 0.9 per cent in September alone.

CoreLogic Hedonic Home Value Index as at 30 September 2017

Source: CoreLogic.

Jim Playsted, agent with Knight Frank Hobart, told SCHWARTZWILLIAMS, the Tasmanian property market has "changed forever".

"It's never going to go back to the way it was," he said.

"There's massive imbalance in the market," said Playsted. "We've had way more buyers than sellers."

Retirees are one of the strongest segments of the market, he said.

Hobart offers something for everone within five kilometres of the CBD, he said, naming Battery Point, Newtown, West Hobart, and South Hobart as the standout suburbs.

While Hobart's growth overall might be in the mid teens, Playsted said many of the top suburbs are seeing annual growth of around 20 per cent.

Playsted said that most of his sales are through expression of interest, where offers are submitted in a sealed envelope. In most cases the top two offers are from interestate or overseas, said Playsted, which makes it "pretty hard" for local buyers.

Tasmania's top sale last week was a three-bedroom home at 141 Harveys Farm Road, Bicheno, which sold for $1,050,000 though Robert Evans of LJ Hooker Bicheno.

Tim Lawless, head of research with CoreLogic, wrote, "Despite the strong capital gains, the cost of housing remains substantially lower (in Hobart) than any other capital city with a typical house value of $412,340 and a median unit value of just under $320,000.

Auction markets

Auction markets stalled over the long weekend, with volumes constrained by both the holiday weekend and the AFL and NRL grand finals. Only 953 auctions took place.

Capital city auction clearance rates

Source: CoreLogic.

REINSW deputy president Leanne Pilkington told SCHWARTZWILLIAMS, "As expected the long weekend coupled with AFL and NRL grand finals saw a drop in auction numbers for the weekend, with preliminary clearance rates hovering just under the 70 per cent mark.

"The Northern Beaches and Inner West are still showing the high demand of 2016 achieving 80 per cent plus results.

"There has been a minor 0.2 per cent drop in values in the last month, although the annual figures are reporting a gain of 10.5 per cent, and a 16.2 per cent increase in stock on the market over same time last year which is great news for buyers."

Read more bout Hobart's property market:

Hobart vacancy rates at record low: SQM Research

Tasmanian real estate boom spreads island-wide

The best Tasmanian architecture