The Real Estate Institute of Tasmania has delivered an extremely positive September Quarterly report, which confirms that market activity has returned to pre COVID-19 levels.
The state is now on track to achieve a ninth successive record year of accumulated sales value.
During the September quarter, Tasmania saw 2959 property sales worth $1.1 billion.
Transactions were up 39.8 per cent, with house sales up 32 per cent to 1807, units up 39.1 per cent to 388 and land sales increased 70.1 per cent to 723.
First Home Buyer sales also increased 48.4 per cent over the quarter, to 518 sales.
House sales numbers and median prices across all major population centres increased. Greater Hobart’s median price grew to $545,000,
Launceston to $383,500 and the North West Centres to $330,000.
The rental market is healthy, with vacancy rates steady and median rents for houses increasing across the state.
“Throughout 2020, the Tasmanian real estate market has been driven by Tasmanians who accounted for more than 90 per cent of all transactions,” the report notes.
“The lack of properties for sale has seen unprecedented pressure placed on prices which continue to rise.
“Many buyers have given up on trying to find an established home and have turned to buying vacant land in the hope of building the home they want.
“The fact that 1705 land sales have occurred this year should provide confidence to the government and the building industry for the future ahead.
“On the flip side, a decrease in investment in rental property is of real concern and will place pressure on this already overwhelmed resource.
Obviously the legislative COVID-19 protections for tenants have severely impacted investment in rental property.”
The report ends on a positive note.
“There is no evidence to suggest that prices on owner occupied property will decrease in the immediate future. We have a strong, confident and resilient market and remain positive on the future ahead.”