Tasmania

The Smartline Report – December Edition

The month in review: Tasmania

By Herron Todd White
December 2016

Glenorchy and Claremont, approximately 10 and 15 kilometres north-west of Hobart respectively have been strong performers throughout 2016 with the majority of residential sales coming from the $250,000 to $325,000 price range. These homes are typically older style homes or units under 150 square metres. For homes in the $326,000 to $450,000 price bracket most of the sales have occurred in Kingston, approximately 12 kilometres south of Hobart and Howrah, approximately 12 kilometres east of Hobart. In Kingston and Howrah buyers have typically purchased either modern style homes from around 150 square metres of living area or larger, older style homes. The most popular suburb for purchasers with a budget over $450,000 is Sandy Bay where the suburb’s top sale of $3.85 million occurred for a 5-bedroom, 5-bathroom modern architect designed house sitting on a 1,472 square metre parcel of land.

In the north of the state, the most sales below $250,000 occurred in George Town however the majority of these sales were well under $180,000 and were marketed for extended periods. Newstead and Riverside is where most of the sales have occurred for residential dwellings in the $251,000 to $350,000 price bracket. The dwelling sales from Newstead and Riverside are typically older style, renovated houses, ranging between 120 and 180 square metres. East Launceston had the most sales over $450,000. The top sale came from Launceston which was an older style 4-bedroom, 2-bathroom house constructed in 1880 on a 1,440 square metre parcel of land which sold for $2 million.

Due to challenging employment opportunities, the north west property market should continue to be approached with caution. The most sales across all price brackets occurred in the Devonport area, the largest population centre. Properties sold for $220,000 and under were of an older style up to 100 square metres of living area.

Increases in investor activity throughout the greater Launceston and Hobart regions have led to higher sales volumes within the lower price range for properties under $350,000. The increase in investor activity has contributed towards the average time it takes to sell a house decreasing from 45 days to 29 days within the greater Hobart region and 67 days down to 57 days within the greater Launceston region. The north west coast has experienced a 4.9% downturn in sales which has increased the average selling time to 90 days.

A shortage of properties for sale throughout the north and south of the state, low vacancy rates and great gross rates of return for rental properties have also contributed towards some slight rises in market prices. Housing in Tasmania is amongst some of the most affordable in Australia which offers excellent purchasing opportunities for people looking to buy or invest.

In the September quarter, five properties sold to foreign purchasers at a median price of $349,000. There were also 16 property sales recorded in excess of $1 million of which 15 came from the south of the state.

In February we suggested newly constructed homes and vacant land sales may be the ones to watch out for due to both the halving of the grant after 31 December 2015 and the fact that purchasers can often gain better value by forgoing the grant and purchasing established or near new residential property. From 1 January 2016 Tasmania’s First Home Builder’s Boost Grant was reduced from $20,000 to $10,000 and was available to first home buyers who purchased new homes, off the plan purchases and owner-builder homes. The $20,000 grant was resurrected by the State Government when it handed down the state budget and was retrospective for those who received grants from 1 January 2016. It appears both vacant land sales and newly constructed homes have remained steady throughout the state which can be attributed to the First Home Builder’s Boost Grant reinstatement, low interest rates and overall market confidence.

In the south many areas are experiencing stronger buyer demand due to reduced stock listings.

11 Ellington Road, Sandy Bay recently sold for a whopping $3.85 million. The property consists of 5-bedrooms, 5-bathrooms and sits on a 1,472 square metre parcel of land.

30/1 Castray Esplanade, Battery Point, a 3-bedroom, 4-bathroom apartment, sold in June for $2.5 million. The apartment is located in what was once a group of silos prior to redevelopment and is situated at the southern end of Salamanca which is the state’s most popular tourist destination.

20 York Street, Launceston in the state’s north recently sold for $2 million. The house was constructed in 1880 and consists of 4-bedrooms, 2-bathrooms and a 2-car garage with an adjoining storage room. The house sits on a large land parcel of 1,440 square metres.

Find out more information and to chat with a local Mortgage Broker in Tasmania.

www.smartline.com.au

Please note that information in this publication is subject to change without notice. Smartline assumes no responsibility for any errors, omissions or mistakes in this document. © Smartline Home Loans P/L 1999 – 2016. Australian Credit Licence Number 385325

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DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.