Launceston and North East remained the top-performing region over the April 2020 quarter, securing the top spot for the second consecutive three-month period.
Over the three months to April, house prices in the region grew by 7.1 percent, while unit values went up by 13.6 percent. These figures were on an annual basis.
"Launceston and North East Tasmania have unsurprisingly seen an uplift due to a spillover of demand from Hobart, and a bullish sentiment towards Tasmanian property markets," said Eliza Owen, head of research at CoreLogic.
However, Owen said it is crucial to note that since the growth rates are on an annual basis, it captures much of the demand prior to the onset of the COVID-19 outbreak.
Sales figures reflect the impacts of the outbreak on Launceston and North East, with house sales declining by 11.3 percent and unit take-ups dropping by 9.5 percent. Overall, residential property sales were 11 percent lower than a year ago and 7.3 percent below the five-year average.
Affordability factor is key
Looking at the sales data for the April 2020 quarter, the most popular homes in the region have a median price range of $200,000 to $400,000. On average, houses stay on the market for 33 days, while units remain for 34 days before they get sold.
"This could represent a reversal of the housing demand dynamics we've observed over the past few years," Owen said.
Meanwhile, according to a study by RateMyAgent, Tasmania recorded the biggest drop in seller satisfaction levels amongst all states, from 55% during the fourth quarter of 2019 to 39% in the past four months.
Mark Armstrong, RateMyAgent chief executive, said this significant decline in satisfaction level could be attributed to the unstable jobs market in the state and dwindling demand due to the COVID-19 outbreak.
"Substantial demand for property in Tasmania comes from the mainland, and we saw this demand significantly decrease as COVID-19 travel restrictions were implemented. These two economic factors alone can prompt buyers and vendors to action on the uncertainty of the market," he said.
"While we still need to analyse the long-term effect of the pandemic and keep a close eye on economic conditions, we are seeing the industry begin to recover, particularly with the easing of restrictions and a slight drop in the national house price," he said.
Tasmania’s “Construction Blitz” Package
- The package is expected to deliver $3.1bn in construction value over the next two years across several sectors, including housing.
- Around 15,000 jobs will be generated.
- 2,300 new dwellings, including social and affordable housing, will be built across the state.
- $20,000 grant will be available to owner-occupiers targeting to build new houses.
Source: Tasmanian Government
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