Tasmanian property boom rolls on: $1b property sales record June quarter
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Aug 6, 2018
Tasmanian property boom rolls on: $1b property sales record June quarter
Tasmania's property boom rolls on as the island state records $1b property sales record for the June quarter, according to the Real Estate Institute of Tasmania (REIT).
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Knight Frank Hobart48 Flinders Esplanade, sold for $1.95m by Tom Triffitt of Knight Frank Hobart as featured on Luxury List.
Amid speculation the market wouldn't be able to sustain its momentum, Tasmania continues to buck the national trend after setting a new record for the value of homes sold in one quarter.
More than $1b worth of properties were sold between the months of April and June.
Figures from the REIT reveal that 3,083 properties were sold for the June 2018 quarter - the highest number since March 2004.
REIT President Tony Collidge tells WILLIAMS MEDIA the strength of the market is reflective of the economic conditions.
48 Flinders Esplanade, Taroona sold by Tom Triffitt for $1.9m through Knight Frank Hobart as featured on Luxury List.
“The strength of our real estate market is a reflection of the strong economic conditions which have created confidence, jobs, and positive population growth. There isn’t the necessity for people to have to move to the mainland for work and Tasmania is now being considered as a lifestyle destination for those seeking to escape the mainland capitals," Mr Collidge said.
Mr Collidge says that while most the momentum is coming out of Hobart, activity in other parts of the state remain strong.
While the number of house sales in Hobart retreated, Launceston and the North Coast recorded significant gains, which Mr Collidge says is reflective of confidence in their market places.
"In Hobart we are starting to see buyer intensity cool. Some properties are taking longer to sell; enquiry levels are dropping. But this is all part of a transitioning market. I expect to see price growth slow and stabilise towards the end of the year," Mr Collidge said.
48 Flinders Esplanade, Taroona sold by Tom Triffitt for $1.9m through Knight Frank Hobart as featured on Luxury List.
However, he said a shortage of properties will ensure price levels won't drop off.
"The shortage of properties for sale across all sections of the state will continue to ensure that the market and price levels won’t drop away.”
The report found local buyers dominate the Tasmanian market, accounting for 76 per cent of the transactions occuring over the June quarter.
Foreign and interstate buyers accounted for the rest.
While investor activity remained subdued, Launceston retained its crown as the 'residential investment capital' with 33 per cent of its total sales snapped up by investors. The median purchase price for investors was $305,000.
The report found that Hobart is the most popular city for first home buyers, with the median price sitting at $340,000.
48 Flinders Esplanade, Taroona sold by Tom Triffitt for $1.9m through Knight Frank Hobart as featured on Luxury List.
Interstate buyers acquired 479 properties over the quarter at a median price of $348,000, while foreign investors acquired 21 properties for a median price of $392,000.
A perceived shortage in established dwellings for sale has seen a surge in the sale of vacant land, with land sales 20.4 per cent higher than at the same time last year.
Interestingly, first home buyers acquired 170 lots while 560 purchases were made by existing home owners looking to upgrade.
The rental market has softened, with vacancy rates easing in Hobart and the North West while Launceston remained stable, and rents flattened out respectively.
Sandy Bay came close to being Tasmania's first million dollar suburb with 27 sales at a median price of $970,000.
Related reading:
Is it really a case of "buyer beware" in Tasmania?
Hobart housing demand higher than anywhere in Australia
"People are hurting" says Tony Collidge, REIT, on strong growth in the Tasmanian housing market
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