The strong demand in Tasmania has continued to propel the growth in property prices, the latest reports from the Real Estate Institute of Tasmania (REIT) and Domain show.
The REIT quarterly report indicated that Tasmania's median prices for houses, units, and vacant land has reached new highs over the June quarter, hitting $510,000, $425,000, and $186,250 respectively.
REIT president Mandy Welling said there is a "dire shortage" of established homes for sale, which placed further pressure on prices, with Hobart, Launceston and North West Centres all reaching their highest median prices on record.
"The popularity of Tasmania as a safe haven and lifestyle destination is accelerating and we can expect mainland demand for our property to grow,” Ms Welling said.
“This will place even more pressure on an already overwhelmed market.”
These findings were consistent with the quarterly results recorded by Domain.
According to the Domain report, house prices in Hobart jumped another $40,000 to reach $646,301 during the quarter.
On an annual basis, house prices were $143,000 higher, recording an annual gain of 28.4% - the steepest increase in 17 years.
The current trajectory at which prices are going in Hobart has already exceeded the boom time results in 2017-2018.
"There is no relief in sight for first-home buyers as entry-level house prices experience the biggest jump over the quarter and year,” the Domain report said.
“Supply remains low compared to buyer demand which is ultimately placing continued pressure on prices.”
Ms Welling said there is a need for the government to expedite major private building and development projects to ensure future supply to meet the still growing demand.
“Any stamp duty windfall should be channelled into public housing to help ease the burden currently carried by the private rental sector,” she said.
“Unfortunately, in the immediate future I see prices and rents having no other option than to continue to move upwards.”