Tasmania's housing market has started to witness its market activity return to pre-COVID-19 levels, according to the Real Estate Institute of Tasmania (REIT).
The state appears to be on track to hit its ninth consecutive record year of overall sales value, which is expected to go over $4.1bn.
Over the September quarter, both house and unit segments reported growth in sales, up by 32% and 39.1%, respectively. Land sales also posted a significant gain at 70.1%.
The state also recorded increased activity from first-home buyers, with sales to the segment increasing by 48.4%.
If there is one segment that has shown weakness during the period, it would be interstate buyers. They comprised less than 10% of all sales in the quarter, 70.7% below the pre-COVID-19 activity levels in the segment.
REIT CEO Mark Berry said mainland buyers typically comprise 20% to 23% of total sales. However, throughout 2020, local buyers have driven the local market activity, accounting for more than 90% of transactions.
"The lack of properties for sale has seen unprecedented pressure placed on prices which continue to rise," he said.
Berry said the limited supply of homes has led to many buyers shifting their focus to buying vacant land.
"The fact that 1,705 land sales have occurred this year should provide confidence to the government and the building industry for the future ahead," he said.
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