Sizeable 10.5% increase in Tasmanian June quarter property activity: REIT

Sales activity in Tasmania has jumped in the lead-up to spring led by a surge in Launceston sales, according to the Real Estate Institute of Tasmania.

It found there was a “dramatic” 10.5% increase in property sales in Tasmania for the June quarter with sales up 19.2% for the year, though price increases were small.

Launceston house sales activity led the charge for quarter, up 34.4% and 11.8% for the year, recording the biggest increase in two years.

Hobart house sales jumped 18% for the quarter and 37.4% for the year – the biggest quarterly increase in three years, according to REIT president Adrian Kelly.

“Although it could be argued these figures are skewed due to the low volume of sales, the figures still remain positive, particularly given the market conditions over recent years,” Kelly says.

Running against the trend, the North-West centres had a slight decrease in house sales, down 1.7% for the quarter but up 7.5% for the year.

The median house price in Tasmania increased 2.5% for the quarter, up 3.2% over the year.

Kelly says these are positives signs for Tasmania’s real estate market, especially at a time with historically fewer properties coming onto market.

“Whilst sellers feel it is a good strategy to wait until spring before listing their property I suggest they discuss this approach with their agent, as selling in winter when there are fewer properties available for purchase can sometimes work in their favour,” he says.

As activity increased, time on market decreased. The average time to sell a house in Tasmania was two weeks quicker in the June quarter, now at 75 days.

First home buyers remained steady over the quarter, accounting for 19% of house sales while second home buyers still holding a majority of the market at 55%.

Launceston was the most popular with interstate buyers, making up 20% of sales for the quarter.

Kingston, in outer Hobart, is one of the suburbs with the highest turnover rates.

In February a newly built four bedroom house on 755 square metres at 1 Kelp Street (pictured below) sold for $537,500 through agent Dion Flanagan from Charlotte Peterswald Real Estate. The site last traded for $110,000 in 2005. According to RP Data it spent just 30 days on market.

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And in May, a 1980-built four bedroom house on 2.13 hectares at 72 Leslie Road sold for $510,000, according to RP Data. It last sold for $230,000 in 1997. It spent 269 days on market.