Tasmanians can share a sigh of relief following a promising quarterly update from the Real Estate Institute of Tasmania (REIT). Despite stubborn inflation and interest rate hikes, Tasmania has rebounded in the June 2024 quarter, recording its highest number of transactions in two years. Despite the ongoing economic challenges, 2,644 properties were sold across the state, signalling renewed buyer confidence.
Tasmania’s median house price for June 2024 stood at $600,000, just 4.2% below the peak of $626,000 in June 2022. Once again positioning our island state as an attractive market for mainland buyers seeking value. Interstate buyer activity surged by 23.3%, with a significant portion investing in properties for use as their primary residence.
The report also highlighted a strong performance in property sales across all sectors -houses, units, and land – marking increases both quarterly and year-on-year. Greater Hobart led the way with 538 house sales, a 16.4% increase from the March quarter, and its median house price rose to $735,000 from $713,751.
Launceston recorded its highest number of house sales since March 2022, although its median house price dipped slightly to $560,000, down 3.1% from the previous quarter. Meanwhile, the North West continues to gain momentum with the region reaching a record-high median house price of $498,000.
The market witnessed a resurgence in both investor activity and first-home buyers, with first-home buyers recording the highest volume of quarterly transactions since March 2021. However, in the rental market, increased stock availability and vacancy rates resulted in lower weekly rents across all regions and increased vacancy rates. Southern weekly rents were hit hardest with an average drop of $25 per week to a median of $525, whereas Launceston held firmer only dropping $5 per week on average, to a median of $475.
Overall, REIT President Michael Walsh expressed optimism about the market’s future, suggesting that the downturn may have ended, paving the way for a potential upswing in line with mainland trends.
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