Despite the economic impacts of COVID-19 across Australia, Tasmania's residential property market was able to minimize risk and dodge most bullets, allowing it to record its ninth consecutive year of growth .
The latest report from the Real Estate of Institute of Tasmania (REIT) showed that the state has broken several housing records over the past year.
The state achieved a record cumulative sales of $6.2 billion in the past year for more than 12,100 properties, the most transactions since 2003.
On an annual basis, home sales in Tasmania increased by 41.9%, supported by gains seen in the three main population centres.
New Benchmark Median Prices Hit All Segments, Increasing 23.85% to $520,000 for Homes; 23.4% to $432,000 for units; and 31.3% at $210,000 for the land.
All three population centers in the state posted stellar median price gains during the year:
Greater Hobart – up 24.9% to $699,500
· Launceston – up 24.3% to $491,000
Northwest Centers – up 22.8% to $399,000
REIT Chairman Michael Walsh said the gains reflected the "strong and robust" nature of Tasmania's residential real estate.
"A severe shortage of properties for sale and for rent, combined with an unprecedented demand for residential housing to live in and to rent, has driven prices to new highs," he said.
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"The likelihood that we will not be able to supply the inventory we need in the immediate to medium future will most likely result in continued upward pressure on prices and rents."
Who are the home buyers in Tasmania?
First-time home buyers have remained active in the Tasmanian housing market.
In fact, first-time home buyers remained about the same as last year, but there seems to be a shift in what they are buying.
The figures show that land sales to first time home buyers fell by 28.3%, while house sales increased by 4%.
Interestingly, unit sales among first-time home buyers grew the most at 12.6%.
Investors buying property in Tasmania also increased over the year, up 33.9%. However, this was still below the levels seen in 2017.
Mainland shoppers increased by 54.1%, but accounted for only 18.1% of all shoppers in Tasmania.
Among mainland buyers, 38% were investors who bought a property at a median price of $412,000.
Mr. Walsh said the significant increase in property prices over the past three years should force the local government to review its housing policies.
"The real estate industry is acutely aware of the pressure many are facing in this current market and the resulting decline in affordability," he said.
“Finding a balance between demand and supply is an issue that we will unfortunately have to deal with for some time to come. »
Mr Walsh said the price increases have brought significant benefits to the government in the form of stamp duty and property tax revenue.
"These winnings provide an opportunity for the government to use these funds to help young and disadvantaged people not only find housing, but also realize the Australian dream of owning their own home", a- he said.
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Photo by @sunny0725 on Unsplash
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