Having recorded a –0.1% decline in values throughout April, Hobart’s median house prices swings in at $484,645 as per CoreLogic’s Home Value Index.
With tourism being suspended by the health crisis, a number of holiday rentals have entered the long-term playfield. According to Herron Todd White’s residential report for May, ‘This may actually have a positive result in Hobart by easing the housing shortage with additional supply’.
Head of research at Select Residential Property, Jeremy Sheppard says, “Tasmania is in a healthy supply and demand situation.”
“Although the overall state looks inferior to the capital, Launceston is a notable exception with a [demand and supply ratio] in excess of Hobart,” he shares.
Sheppard adds that the Apple Isle’s vacancy rates of the past year or two are setting back into “a position of normality”, but he also notes, “They’re still lower than most of the mainland state capitals.”
Home sales down, land sales up
Overall, while homes sales are down in Tasmania, land sales continue to increase.
Figures from the Real Estate Institute of Tasmania (REIT) showed that the sales of vacant land increased by 1.6% on an annual basis in April.
“This is good news with the potential to assist the building industry as they have noticed a downturn in new building approvals,” says Mandy Welling, REIT president.
On the other hand, home sales have declined by 27.5%. Hobart, Launceston, and North West all reported substantial drops in home sales at 36.8%, 39%, and 12.3%, respectively.
Of the three, only the North West region managed to keep its prices stable. Hobart and Launceston registered respective price declines of 13.8% and 0.8%. Across the state, prices dipped by 2.2%.
Welling says despite the drop in sales activity and prices, buyers are still active in the market. In fact, properties are selling 1.7% above their list prices. This could indicate that there is still competition in the market.
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