The median house price in Tasmania is now almost back to its peak price, the Real Estate Institute of Tasmania's December quarter property report shows. The median house price for Tasmania was $315,000 in the December quarter, a 4.5 per cent increase on the previous quarter and the highest median house price recorded since the December 2010 peak price of $320,000.
The report, released today, also revealed nine Tasmanian municipalities recorded a median house price higher than the state median. These included Clarence ($370,000), Hobart ($475,000), Huon Valley ($349,000), Kentish ($333,500), Kingborough ($395,000), Latrobe ($344,500), Meander Valley ($320,000), Sorell ($325,000) and the Southern Midlands ($340,000). “It’s interesting to note the appearance of a wide range of regional areas in Tasmania making it onto the list of locations with higher median house prices compared to the state average," said REIT President Tony Collidge.
There was a 3.1 percent increase in house sales across Tasmania on the previous quarter. House sales in Hobart increased for both the quarter and the year, up 11.2 per cent and 2.4 per cent respectively. Launceston house sales were also up, recording a 5.1 per cent increase for the quarter, while the North-West centres bucked the trend, reporting an 11.5 decrease for the quarter.
Collidge said increases in median house prices were observed across most of the state, but the price distribution of sales differed significantly. “Hobart saw 31 per cent of all house sales occur below the $300,000 price point, while 59 per cent occurred between the $300,001 and $600,000 bracket, and 10 per cent of sales came in above that price, which included 10 sales up to and above $1 million dollars,” said Collidge. “While in Launceston, 58 per cent of the quarter’s sales were recorded below $300,000, 40 per cent between $300,001 and $600,000, while only 2 two per cent of all houses sold were above this price point. In contrast, the North West Centres saw 76 per cent of all house sales occur below $300,000 and the remaining 24 per cent fell into the bracket of $300,001 - $600,000."
First home buyers dropped from 17 per cent to 13 per cent of all house sales following the removal of the First Home Owners Grant on July 1 for purchasers buying established dwellings. Second home buyers picked up the 4 per cent loss in first home buyers and continue to hold over half the market, accounting for 57 per cent of house sales and a median house purchase price of $330,000.