The past 12 months have seen many areas in Tasmania, as well as the rest of the country, succumb to more subdued market conditions, resulting in many areas experiencing decreases in their median house prices over the year. However, there is reason to be optimistic, as the market lull has revealed several top areas in which to purchase real estate in Tasmania. Savvy first home buyers along with keen investors are taking notice of key areas in which to purchase well priced property. In the last six months alone, we have seen a 28% increase in the number of first home buyers in the market. With the home loan interest rate also reducing over the year, Tasmania’s property market has dropped its barriers of entry for first home buyers, and they have been entering the market in full swing to take advantage of these newly emerged ‘hot spots’.
Tasmania Hot Spots
Currently, the most active areas in Tasmania are mainly the regional cities and towns, which have become quite affordable due to drops in the median house prices of around 6-8%. Of these areas in particular, the northern suburbs of Hobart, Glenorchy and Chigwell and surrounding locations are showing good value for money.
Other areas to keep an eye on are on the northwest coast of the state, including Latrobe, Devonport, Ulverstone and certainly Burnie and the Circular Head region, including Smithton and Stanley are worth keeping in mind.
These areas also represent top investor buys at the present moment, with property being purchased between $150,000 to $250,000 with fairly good weekly rental returns. Within these regional areas you can find high quality homes, and those with waterfront or sea views are certainly showing good value, selling in the region of $400,000 to $600,000.
Median House Prices
We are of the opinion that prices in Tasmania have stabilised, and it would appear that prices will remain this way for the next 18 months or so, with good value buying remaining throughout this period. Interested buyers are encouraged to keep a close eye on the Tassie market if they are considering investing or relocating to this magnificent part of Australia.