Tasmania's property market is showing signs of stability as first-time homebuyer numbers reach their highest since March 2021, with most purchases in southern Tasmania. Tasmania emerges as an affordable option, with median house prices reaching USD 600,000 - 2.4% lower year-on-year. A recent report from the Real Estate Institute of Tasmania reveals increased market confidence, as first-time homebuyers and investors return. With 2,644 properties sold, totaling USD 1.62 billion, sales rose across all property types. Greater Hobart saw a 16.4% rise in house sales, with median prices up to USD 735,000. First-time buyers reached a high since March 2021, while mainland buyers rose 23.3%. The market may have bottomed out, signaling potential growth similar to mainland trends.
As interstate housing prices soar, Tasmania once again stands out for offering some of the most affordable property values in the country. Mainland Australia's property markets have surged by 8.5% post-Covid in the past year, contrasting with Tasmania's slight decrease of 2.4%.
According to the latest quarterly report from the Real Estate Institute of Tasmania, the statewide median house price has now reached USD 600,000, just 4.2% below the record high of USD 626,000 set in the June 2022 quarter. Michael Walsh, president of REIT, expressed satisfaction at the improved confidence and sentiment evident across the state.
Interstate market surges have made Tasmania an attractive, cost-effective alternative for mainland buyers as stated by him. He added that the easing of rents and the increase in available rental properties would help alleviate pressure on the rental market, though the lower, more affordable segment would likely remain tight.
Walsh indicated that the June quarter results suggest the market may have reached its lowest point, hinting that the correction experienced over the past three years could be over. We can expect an upswing similar to those in the mainland states was concluded by him.
The report showed that 2,644 properties were sold during the quarter, totaling USD 1.62 billion in value.
Sales of houses (1,837), units (440), and land (345) all increased compared to both the previous quarter and the same period last year. In Greater Hobart, there were 538 house sales, a 16.4% rise from March and a 4.3% increase from last year.
Hobart's median house price went up from USD 713,751 in March to USD 735,000 in June, which is USD 3,000 higher than the same time last year. The number of sales exceeding USD 1 million grew from 207 to 221 over the quarter but was 18 transactions fewer than in June 2023. Historically, most sales at this price level have been to local buyers, and this trend continued in June, with 80.5% of these transactions involving local purchasers.
The number of first-time homebuyers (479) continues to increase, reaching its highest level of purchases since March 2021. The majority of these sales, 233, were homes bought in southern Tasmania.
Investors acquired properties at a median price of USD 460,500, with 123 purchases in the south, 110 in the north, 84 in the northwest, 15 on the East Coast, and 10 on the West Coast.
Activity among mainland buyers rose by 23.3%, with 439 participants, of whom 296 bought property with the intention of relocating to Tasmania.
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