Tassie back in buyers’ good books
The state’s renewed popularity with domestic and mainland buyers, alongside strong first home buyer participation, has led Tasmania to record its highest number of transactions in two years.
The Real Estate Institute of Tasmania’s (REIT) June Quarterly Report has shown that Tasmania’s median house price registered $600,000 over the quarter, only 4.2 per cent lower than the state’s highest ever median price of $626,000 recorded in the June 2022 quarter.
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The institute reported that Tasmania underwent 2,644 property transactions over the June quarter, marking a 16.1 per cent increase on the March 2024 quarter, and registering as 10.4 per cent higher than the same time last year.
With sales over the quarter cumulatively valuing $1.62 billion, up 19.4 per cent on the June quarter of 2023, the institute also relayed that the number of sales in excess of $1 million rose from 207 to 221 over the quarter, but was still down 18 transactions from this time last year.
Notably, local buyers were described as being responsible for 80.5 per cent of the transactions exceeding $1 million.
Investor numbers in the state were also recorded to have undergone a “small resurgence over the quarter”, purchasing property at a median price of $460,500.
In addition to the renewed domestic activity within the state, the institute highlighted the 8.5 per cent increase in mainland Australia’s property prices, stating that Tasmania’s price contraction of 2.4 per cent over the June quarter has caught the eye of weary mainland Australian investors.
As a result of the relative affordability of Tasmanian property, the institute stated that “Tasmania now finds itself in the enviable position of once again offering some of the best value for money property across the nation”.
This sentiment was echoed by REIT president Michael Walsh, who stated that “surging mainland markets have provided opportunities for mainland buyers to see Tasmania as an appealing affordable alternative”.
Through this increased interest, mainland buyer activity in the Tasmanian market grew 23.3 per cent to 439 participants, where 296 purchased property to relocate to the state, 143 purchased as an investment, and 43 of these buyers paying over $1 million for a property.
Sales of houses (1,837), units (440), and land (345) were all recorded as above the previous quarter, increasing by 12.9 per cent, 37.5 per cent and 15.8 per cent respectively over the March quarter.
Greater Hobart was revealed to have undergone 538 house sales over the quarter, this volume up 16.4 per cent on the March quarter, and by 4.3 per cent over last year.
Hobart’s median house price also rose from $713,751 in March to $735,000 in June, with this latest value also noted as being $3,000 more than the same time 12 months ago.
While Launceston reported the highest number of house sales (271) since the March 2022 quarter, the institute detailed that the city’s median house price fell 3.1 per cent to $560,000, down from the March 2024 quarter’s record of $578,000.
Within the North West Centre market, 225 houses were sold which registered as a 10.3 per cent increase in auction volume over the previous March quarter, and 5.1 per cent on the last June quarter.
Median house prices in that market also increased to a record high of $498,000 over the quarter, marking a $28,000 increase over the previous quarter, and a $38,500 increase over the last June quarter.
Commenting on these findings, Walsh stated that he was “pleased” to see an “improvement in confidence and sentiment across the real estate market in Tasmania”.
“The June quarter results give me confidence that the market has bottomed out and the correction that we have endured over the past three years may be at an end, and that we can look forward to an upswing in line with those of the mainland states,” said Walsh.
Tasmanian rental market
The institute cited “weakening demand across the rental sector” was behind the rent decreases occurring across all regions of Tasmania.
Rental costs in the South were said to be down $25 per week to a median of $525.
While Launceston moved down $5 per week to $475, the North West declined $15 per week down to $400.
With these weakening rental rates, the REIT stated that “rental availability continues to grow” as vacancy rates have risen to 2.5 per cent in the South, 2.3 per cent in the North, and 2.2 per cent in the North West.
Weighing in on the state of the rental sector, Walsh said that “an easing in rents and increased availability of properties for lease will help ease the pressure on our rental sector”.
“Unfortunately, things will remain tight at the lower, more affordable end of that market,” he concluded.