‘Look forward to an upswing’: June results show active market

Mainland Australia’s post-Covid property markets have seen property prices increase by 8.5 per cent over the past 12 months, while Tasmanian prices contracted 2.4 per cent.

In its new quarterly report, the Real Estate Institute of Tasmania found the statewide median house price has reached $600,000.

This is only $26,000 or 4.2 per cent lower than the record median price of $626,000, recorded in the June 2022 quarter.

REIT president Michael Walsh said it was pleasing to see an improvement in confidence and sentiment across the state.

He said growth in first home buyers numbers and the re-emergence of investors in the market was good news.

“Surging markets interstate have provided opportunities for mainland buyers to see Tasmania as an appealing, affordable alternative,” he said.

REIT president Michael Walsh.

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“An easing in rents and increased availability of properties for lease will help ease the pressure on our rental sector. Unfortunately, things will remain tight at the lower, more affordable end of that market.”

Mr Walsh said the June quarter results provide confidence that the market has bottomed out and the correction that has endured over the past three years “may be at an end”.

“We can look forward to an upswing in line with those of the mainland states,” he said.

The report revealed that there were 2644 property sales in the quarter, at a cumulative value of $1.62bn.

House (1837), unit (440), and land (345) sales were all up compared to the previous quarter and the same time last year.

Greater Hobart recorded 538 house sales over the quarter, which was up 16.4 per cent on March and 4.3 per cent on last year.

Hobart’s median house price increased from $713,751 in March to $735,000 in June. This was $3000 more than the same time last year.

No.21 Cromwell St, Battery Point is on the market for $2.79m-plus.

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The historic No.8-8a Gordon St, Sorell is heading to auction on August 24.

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The number of sales in excess of $1m increased from 207 to 221 over the quarter, but was down 18 transactions on June 2023. Historically, local buyers were responsible for the majority of sales at this level, which was the case in June for 80.5 per cent of these transactions.

First homebuyer numbers (479) continue to rise recording their highest number of acquisitions since March 2021.

Most of these sales, 233, were homes purchased in southern Tasmania.

Investors bought property at a median price of $460,500, with 123 sales in the south, 110 in the north, 84 on the northwest, 15 on the East Coast and 10 on the West Coast.

Mainland buyer activity grew 23.3 per cent to 439 participants. Of these, 296 acquired property to relocate here.