Tasmanian property market starts to shine

by Madelin Tomelty18 Jan 2017
The Real Estate Institute of Tasmania’s (REIT’s) Tony Collidge has said that Tasmania is “well and truly” becoming a seller’s market, following two strong quarters, according to The Mercury.
 
While the island state’s property market’s September quarter results showed a slight decline in the number of sales despite a critical shortage of property listings, the last two months were particularly strong, Collidge said. “There is an increasing number of investors trying to get into the market but they will be fighting with first home buyers for properties and that will put pressure on the lower end of the market,” he said. “Anything under $300,000 at the moment is really saleable.”
 
The median price for Greater Hobart houses has increased annually by 7.8% to $385,000 and houses are selling much faster, according to Collidge, who said the city of Launceston is becoming the “investor capital of Tasmania”. “Increased investor activity in the area has seen more sales in the lower price ranges and this has been largely responsible for a decreasing in Launceston’s median price,” he said.
The average number of days on market for properties in Launceston has also dropped from 67 days to 57.
 
The majority of property sales in the September quarter were to local Tasmanians, with approximately one in five (21%) sold to interstate buyers and only a handful sold to foreign buyers (five properties). Collidge said there was strong and growing demand for property in the state and rental properties were experiencing very low vacancy rates and excellent rates of return.