Strong end to 2013 for Tasmania: REIT

According to the Real Estate Institute of Tasmania’s (REIT) latest report, December saw a 10.7% increase in house sales from the previous month in Tasmania.

In its December Quarter Property Report, released today, the REIT said that Tasmania experienced a 21.1% increase in properties sold over 2013 from the year prior.

REIT President Adrian Kelly said that house sales in Hobart, Launceston and the north-western centres increased over the entire year.

“Hobart house sales increased by 15.2% for the quarter, but of particular interest was Inner Hobart, which recorded a staggering 46.2% increase in house sales,” said Kelly.

“Launceston house sales also showed positive growth, up 23.2% after a 7.3% decline in the September quarter, recording an overall increase of 17.1% in house sales from the same time last year.”

Tasmania’s median house price increased slightly over the December quarter, up 3.4% from the September quarter. The REIT’s report noted that Tasmania had a strong June quarter in 2013, with a slightly softer September quarter.

“Fourteen municipalities saw an increase in both their median house price and sales for the [December] quarter,” said Kelly.

Sandy Bay, Acton Park and Glebe were the most expensive Tasmanian suburbs in December. The cheapest were Ravenswood, Beaconsfield and George Town.

First home buyers accounted for 18% of house sales in Tasmania for the quarter, with a median price of $265,000, an increase from the previous quarter. The Tasmanian government recently increased its first home buyers grant to $30,000. 

Although the proportion of house purchases made by first home buyers was up for December, second home buyers still comprise 51% of all buyers, according to the REIT report. The median house price for second home buyers was $334,000.

jrichardson@propertyobserver.com.au