Interstate buyers and the demand for prestige properties have boosted sales in Tasmania, with Harcourts Group reporting a record $98.1 million in sales during June.
“It was our biggest month ever, and represents an increase of almost three per cent over our previous record month,” said Harcourts Tasmania CEO Tony Morrison.
“There have been some significant residential sales to attribute this growth too. Despite the number of sales listings on the decline in much of Australia, our market marches to a different beat and is rarely on the same track.
“In fact, we have seen a steady increase in listings in a number of suburbs, along with other strong indicators of a strengthening residential real estate market.”
One example is the property at 93 Lachlan Parade in Riverside, which sold in 30 days for a record price in the suburb. According to Jayne Harwood, General Manager Harcourts Launceston, the market is seeing a decrease in average days on market.
Harcourts Launceston is also bucking the national trend of a slowdown in listings, with the office maintaining an increase similar to that reported by other Harcourts offices in the state. This is in line with the overall Harcourts Group Australia national figures which show an increase in both new listings and sales for the previous 12 months.
Nick Bond, owner of Harcourts Huon Valley and Harcourts number 11 ranked sales consultant nationally, agreed that strong buyer interest from interstate is contributing to record prices.
According to Mr Bond, buyers from Victoria and New South Wales are competing for larger properties in prestige areas, such as the home at 671 Silver Hill Road in Lower Wattle Grove which eventually sold to an out-of-state buyer.
“There has been a lot of discussion lately about affordability in capital cities, with Hobart often mentioned as relatively good value compared to Sydney or Melbourne,” said Mr Morrison.
“These are two examples of transactions in which buyers have seen good value, not just in Hobart but across Tasmania, and paid accordingly to secure the properties.”
According to CoreLogic, of the combined capitals Hobart posted the strongest growth in June with a 2.8 per cent increase in dwelling values on the previous month, followed by Melbourne on 2.7 per cent and Sydney on 2.2 per cent. Sydney remains the most expensive city with a median dwelling value of $880,000, while Hobart is the most affordable on $355,000.