Tasmanian real estate is benefiting from rising prices elsewhere in the country, and a growing appreciation of the state's natural and cultural advantages.

“Whilst national focus has been on the mainland markets, Tasmania has quietly slipped under the real estate radar," said Tony Collidge, president of the REIT.

“For the first time in more than a decade, we could achieve annual results exceeding 11,000 sales worth almost $4,000,000,000."

"The March and June 2017 Quarters have seen real growth in not only the number of sales but also prices. The results appear to be spreading across the broader state and not just the major populated areas," he said.

Collidge said it was pleasing to see the West Tamar, Meander Valley, Northern Midlands, Circular Head, Derwent Valley, Central Highlands and Southern Midlands all record increased sales.

"The transformation has occurred as a result of a shortage of properties for sale and for rent coupled with an increase in population growth, increase in employment, increased consumer sentiment and positive economic conditions," said Collidge.

"We still provide the cheapest and best value accommodation in Australia," said Collidge, concluding that the Tasmanian market may "still have a way to go."

Sandy Bay, Hobart, the state's most valuable real estate

As of 30 June 2017, Sandy Bay's median house price of $850,000, the highest in the state.

Source: REIT.

Jo Brownless agent with Fall Real Estate sold a four-bedroom house at 105 Princes Street, Sandy Bay, for exactly $850,000.

"Sandy Bay's always been a hot spot," Brownless told SCHWARTZWILLIAMS. 

"It's got a lot of great schools, it's got the university, it's close to the CBD, and is on there River Derwent," she said. 

Brownless said there was strong interest in Hobart real estate from interstate.

"We're seeing plenty of interstate interest," she said. "I receive two to three calls a day, and many emails, from people who are looking to relocate," said said. 

Buyers come from all over the country, and from overseas she said. Some buyers are even coming from Queensland, said Brownless, and are attracted by the more temperate climate.

She said she also sees young buyers from interstate turning to Hobart to "get a foot in the property market". Other interested parties include downsizers, side-steppers, doctors and medical staff, and holiday-makers.

Brownless said Hobart real estate also holds a lot of appeal for investors. "We've got some of the best returns in the market," she said. 

Launceston market catching up with Hobart

Median prices in East Launceston raced 54.9 per cent higher in the June quarter alone to a median of $612,000. George Town, in Launceston, saw prices nearly double in the year to June 2017, to a median of $240,000.

Source: REIT.

Source: REIT.

The Launceston market "has been moving", Jeremy Wilkinson of Harcourts told SCHWARTZWILLIAMS.

The Launceston market tends "to follow the trends of the mainland and Hobart", he said.

"We are probably 12 to 18 months behind Hobart," he said.

Launceston property has great appeal for investors, he said. Yields are generally around the 6 per cent mark, and can sometimes even reach seven and eight per cent, he said.

Though Tasmania's appreciation hasn't been as strong as in other states, it's not far behind, said Wilkinson.

"There's been a highest number of sales in a long time," he said. 

Wilkinson said the market is facing a shortage of stock. In May this year, properties that had been on the market for some time, even properties with high prices, sold, he said.

"In May and June it really came to the fore," he said. 

Interest from interstate is strong. "Last year 12-14 per cent of buyers were from interstate, today 30 to 40 per cent come from interstate," he said.

Queenstown on the West Coast: affordable, strong capital growth recorded

Queenstown, a tiny town that lies on the West Coast of the island, has some of the most affordable real estate in Tasmania, with a median price of $110,000. The town achieved 77.4 per cent growth in median prices in the year to June 2017.

A charming, five-bedroom home at 2 Coalville Street, Queenstown, sold for onlly $185,000 in April through Jenelle Carey of Harcourts. (See images in slide show.)

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