Tasmanian property market leads the nation

Tasmanian property market leads the nation

15 December 2017

With 2017 sales up 11.6 per cent on last year, the Tasmanian real estate market continues to flag itself as Australia’s premier property market, says the Real Estate Institute of Tasmania.

The Real Estate Institute of Tasmania’s September 2017 Quarterly Report confirmed that the Tasmanian real estate market remains Australia’s fastest growing, grossing $3.8 billion.

If the market continues to perform at its current level over the final quarter of 2017, these results will be the highest number of sales in the past decade and the highest ever accumulated market value of sales.

The REIT report showed 2,414 sales worth $756.6 million for the same quarter last year. In 2017, these figures increased to 2,700 sales worth $914.2 million.

Hobart suburban median price levels were $436,250, their highest ever and up 13.3 per cent for the year.

Launceston house prices also demonstrated strong growth, gaining 13.2 per cent for the year to a median price of $300,000.

Meanwhile, unit sales increasing a whopping 24.9 per cent over last year. Hobart (238 sales) was up 34.5 per cent, and Launceston (68 sales) increased 25.9 per cent. The median unit price has increased from $250,000 in 2016 to $277,750 in 2017.

REIT data suggests that several of the major real estate market analysts who suggested Tasmania’s market was being driven by mainland investment were incorrect.

According to local REIT president, Tony Collidge, Tasmania’s real estate and rental markets continue to be driven by strong local demand.

Favourable economic conditions, a robust tourism market, and consumer optimism are also fuelling positive growth within the state.

“I envisage the shortage of rental properties and properties for sale will see demand continue to push rents and prices higher,” Mr Collidge said.

“Still, it is relevant to remember that our property prices are the least of all capital cities and well below most parts of Australia.”

“Hobart’s median price over the past 17 years has risen in similar proportion to all other mainland capital cities and is still $53,000 below Adelaide, and $753,000 behind Sydney,” he said.

“Unless we can find a way to fill the gap between demand and supply, prices will continue their upward movement for some time to come,” he added.

Tasmania joined New South Wales and Western Australia as key drivers of growth in building approvals, according to the ABS data, who reported earlier this year that Australian building approvals rose by 1.5 per cent in September, defying expectations of a more pronounced slowdown.

Although Hobart has recorded double-digit value growth in dwelling values over the past 12 months, Tasmania remains Australia’s most affordable state.

Image: Tourism Tasmania & George Apostolidis