Market Report: TAS real estate update, September 2018

The Tasmanian property market has recorded its eighth consecutive quarterly record for the value of property sold and the highest number of transactions in a decade, according to the latest research from industry peak body, Real Estate Institute of Tasmania (REIT).

Despite speculation the market couldn’t possibly sustain this momentum, Tasmanian property recorded its highest level of sales with 3,083 transactions in the June 2018 quarter and amassed a record cumulative sale value of $1,078,089,596.

Consequently, median house prices increased across Tasmania over the past 12 months with Hobart up 17.7% (to $506,000), Launceston growing by 16.1% (to $339,000) and the North West Centres increasing by 11.6% to ($278,000). Unit sales also recorded growth in both sales (+4.9%) and prices (+5.8%) over the period.

A perceived shortage in established dwellings for sale has seen a surge in the sale of vacant land. Land sales in 2018 (1088 lots) are 20.4% higher than at the same time last year. Interestingly first home buyers acquired 170 lots while upgraders purchased 560. Investors and developers acquired the balance.

Investor activity grew slightly over the quarter (up by 1.0%) to 23% of all transactions in Tasmania, noted the REIT research. Launceston retained its crown as residential investment capital of Tasmania with 33% of its total sales snapped up by investors. Hobart was second with 28%, and the North West with 23%. The median purchase price for investors was $305,000 in the June quarter.