As we entered 2024, there was a collective hope among Tasmanians that the challenges of 2023 were behind us. Despite high interest rates, housing and rental affordability issues, and the high cost of living, there are signs of recovery in the real estate market. Some indicators in this latest Tasmanian property market update suggest we have weathered the storm, recording stronger results than the previous quarter, and the same period last year.
Northern Tasmania Real Estate Market Trends
Northern Tasmania accounted for 24.3% of the state’s residential real estate activities, setting a new record median price for house and unit sales. Key highlights from the March Quarterly Report include:
- Property Transactions: 554 transactions valued at $331 million, up 18 sales from the December quarter, but 5 less than the same time last year.
- House Sales: 414 sales with a median price of $570,000, an increase of $8,000 over the quarter and $21,000 over the year.
- Unit Sales: 69 sales, with a record median price of $475,000, up $32,500 from March 2023.
- Land Sales: 59 sales, with a median price of $260,000, up $30,000 from the previous quarter but down $15,300 from last year.
- First Home Buyers: 117 buyers, with 89 acquiring houses, 19 units, and 9 land plots.
- Investor Activity: Increased from 64 in December to 69, though down 12 from the same time last year, with a median purchase price of $465,000.
- Mainland Purchasers: Increased from 58 in December to 75, with a median purchase price of $542,500.
- Rental Market: Northern Tasmania has the state’s lowest vacancy rate at 2.1%, up from 1.8% the previous quarter, with rents rising to $480 per week for a three-bedroom house.
Michael Walsh, REIT President, expressed optimism about the market’s recovery, noting that the downturn in 2023 allowed many young first-home buyers to enter the market.
Southern Tasmania Real Estate Market Trends
Southern Tasmania accounted for 47.5% of the state’s residential real estate sales, showing significant activity and value. Key highlights from the March Quarterly Report include:
- Property Transactions: 1081 transactions valued at $730 million, up 48 sales from the December quarter, and 93 from the same time last year.
- House Sales: 756 sales with a median price of $680,000, a decrease of $20,000 over the quarter due to lower-priced property sales.
- Unit Sales: 186 sales, with a median price unchanged from the previous quarter at $510,000 but down from $570,000 last year.
- Land Sales: 133 sales, with a median price of $255,000, down $15,000 from the previous quarter and $55,000 from last year.
- First Home Buyers: 220 buyers, with 143 acquiring houses, 56 units, and 21 land plots.
- Investor Activity: Increased from 119 in December to 127, up 53 from last year, with a median purchase price of $495,000.
- Mainland Purchasers: Increased from 99 last March to 144, with a median purchase price of $600,000.
- Rental Market: Southern Tasmania has a vacancy rate of 2.4%, up from 2.1% the previous quarter, with rents rising approximately $20 per week.
Michael Walsh, REIT President, noted the positive signs of market recovery, highlighting increased transaction numbers and rental availability, despite ongoing challenges such as potential interest rate relief delays.
Conclusion
In conclusion, both Northern and Southern Tasmania are showing promising signs of recovery in their real estate markets as we move further into 2024. With increased activity and stabilising prices, there is a growing confidence among homeowners and investors alike.
Sources: REIT March Quarterly Reports Press Release, Northern and Southern.
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