Property market heats up as sales swell, values climb

New data from the state’s peak real estate body shows a market gaining momentum.

The June Quarterly Report by the Real Estate Institute of Tasmania reveals property transactions are on the rise and the total value of sales has climbed to a 12-month-high.

In the three-month period, there were over $1.592bn worth of home and land sales, eclipsing the previous three quarters that were each in the $1.4bn-plus range.

The June quarter’s 2578 transactions was more than a 7 per cent increase over the previous quarter, and higher than each of the quarters in the last 12 months.

REIT president Russell Yaxley said sales activity is a strong indicator of the market’s momentum.

“It’s always a positive sign when homes are being priced correctly and they are finding buyers ready to make their move,” he said.

“New stock has been hard to come by recently, but this may shift with the arrival of spring.”

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While Tasmania has experienced a drought on the investor front for years, June marked a resurgence — however, with an asterisk.

Mr Yaxley said the rise had been “counterbalanced” by investors selling their rental homes.

Investor activity increased by 41.5 per cent over the quarter to record this part of the market’s strongest result in three years.

These 429 sales were 25.4 per cent more than June 2024’s figure. More than half of these sales, 231, were acquisitions made by interstate-based purchasers.

A further 290 interstate buyers purchased to live in Tasmania.

Mr Yaxley said some of these investors, who entered the Tasmania market when there was last an opportunity for capital growth, may have reached the end of their cycle.

“It could be that the time is right for them to cash out,” he said.

“It’s interesting that at the same time other investors see Tasmania for the opportunity it offers.

“We want a positive environment for investors in Tasmania. Rental property sales outpacing rental supply is something we cannot afford.”

Meanwhile, first home buyers acquired 457 properties in June, 10 more than the previous quarter but 22 less than the same time last year.

The majority bought houses (344), then units (65), with 48 purchasing land.

Purchases by internationals accounted for just 10 sales in the quarter.

There were 215 homes sold in excess of $1m. This was about even with the previous quarter — four more sales — but six fewer than the same time last year.

Locals were responsible for four out of every five sales in this price range.

Hobart’s median house price was $730,000 in June. A 0.7 per cent fall in the median was attributed to the increased volume of sales in the city’s more affordable suburbs.

House sale numbers in Launceston were up 5.7 per cent over the quarter but were down 10.7 per cent on last year.

Its median price, $550,000, dropped by $25,000 over the quarter and was $10,000 less than the same time last year.

While Hobart home values surged higher around and before Covid, a softer market in recent years has seen Hobart’s pricing advantage return when compared to other capitals.

“The lifestyle and the price advantage that we have compared to elsewhere — plus good schools, food, and community — you can see why people would want to live here,” Mr Yaxley said.

JUNE QUARTER

Total sales 2578

Total value of sales $1,592,903,804

Hobart’s median house price $730,000

Hobart’s median unit price $577,500

Hobart rental vacancy rate 1.8 per cent

Median rent three-bedroom Hobart house $560 per week

Highest median price Battery Point $1.38m

Lowest median price Queenstown $210,000

Most land sales Huon Valley 28

Source: REIT