Our friends across the Bass Strait have something to smile about as houses become a smidge more affordable. The REIT have just released their latest Median where an overall of 1,690 house sales were recorded for the quarter with a state-wide median of $315,000 a tiny dip of 1.5% from the previous quarter’s release of $320,000.
The state saw a few areas decrease with Hobart’s median house price down $5,000 to $385,000, Launceston down $4,000 to $286,000 and the North West Coast down $25,000 to $235,000.
While real estate in Tassie overall has remained sturdy for the quarter, Hobart had 17 fewer house sales over the March quarter (compared to the previous benchmarking December quarter) while Launceston had less 46 and the North West Coast 36 fewer sales.
Although the housing market has taken a breath, the rising Unit Market was the star of the quarter which increased 17.3% to 325 sales with both the north-west (up 40%) and Hobart (up 31.9%) showing great improvement.
Those purchasing property in the March quarter were almost identical to December with:
- Investors taking up 14% of purchases
- First Home Buyers taking up 13% of purchases
- Second Home Buyers contributing to 53%
- 16% of sales were recorded for interstate buyers
- 1% going to overseas buyers.
- Local buyers still accounting for more than 80% of the market.
Demand for rental accommodation continues to grow with rental vacancy rates at their lowest level in many years, currently below 3%.
Average days on the market for a property listed for sale drifted out from 46 days in the December quarter to 61 days in March.
REIT President Tony Collidge said, “The underlying principles which control our market have not changed. At some stage the market had to take a breather. We operate in a local market, driven by local conditions, with property predominantly being purchased by locals. A monthly breakdown of sales shows momentum had returned to the market at the end of March after a sluggish January/February.
If we exclude the December 2015 results, our March quarter 2016 was the highest performing quarter over the past two and a half years. We have Australia’s most affordable real estate market at a fraction of the price of Sydney or Melbourne. Whilst 41 suburbs or towns currently experience their highest median price ever, more than 163 areas are still at prices below 2008 levels. We have an affordable market with a capacity for growth. I remain confident that the future of real estate in Tasmania is optimistic and positive.”