It has taken a long time, but house sales are picking up pace in Tasmania, according to REIT’s March Quarter Property Report.
In fact, house sales across the state increased by 12.1% over the March quarter. The result was the highest number of sales in five years.
In Hobart, they were up 20.5% on last year, while Launceston saw a 24.9% increase. However, sales in the North West Centres dropped by 4%.
Even though Tasmanian house sales overall were on the up, the median house price only increased by 1.6% to sit at $310,000 for the quarter, said REIT President Tony Collidge.
The results also saw more investor activity, with figures up 2% to 16% of all sales. Mainland buyers increased to 17% of all sales and sales to foreign purchases remained at 1%.
“These figures are indicative of the Melbourne and Sydney markets being near the top of their run, with many mainland investors looking for other destinations to invest, and the positive signs within our property market, good returns, low vacancy rates and a turnaround in activity have made Tasmania an area worth considering,” said Collidge.
“The Municipalities of Hobart (161 sales), Clarence (211 sales), Glenorchy
(130 sales) and Kingborough (129) dominated the southern market. Launceston recorded 286 sales, up 15.3% on the last quarter, while Devonport
(59 sales) and Burnie (43 sales) led the way on the North West Coast.”
Collidge believes the real estate market has bottomed out across most areas of the state and is now heading for an upward trajectory.
“Several suburbs across the state are near, or have achieved their highest ever median prices and the increase in sales activity is reducing stock supply which could shortly place upward pressure on house prices,” he said.
“Increased consumer confidence, low interest rates and government stability are all factors contributing to our current positive market outcomes.”
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