The month in review: Tasmania
By Herron Todd White
The recent interest rate cut is likely to have a stabilising rather than stimulative effect on Tasmania’s residential property market.
Recent government economic data indicates that the state continues on a positive note with a relatively stable labour market.
Sales volumes peaked during the June quarter of 2014, reportedly the strongest sales in four years. Residential sales volumes have stepped down in both subsequent quarters.
This month available government sales data for existing dwellings over the last two quarters was used to identify potential trends in residential market bracket sales volumes. Each region of Tasmania (south, north and north west) was categorised into four sub markets of first home buyer, middle market, upper middle market and luxury or executive. Bracket adjustments were made for regional economic variations.
In the south, the luxury or executive residential dwelling market was the only sub market to buck
the state sales volume trend. Residential sales volumes in this bracket rose during the December quarter. The majority of these sales occurred in the suburbs of Sandy Bay and Battery Point. These suburbs are located alongside each other near to the city and fronting the Derwent River. In the south, consistently over the two quarters, the most sales occurred within the middle bracket. This data would be consistent with the notion that first home buyers were preoccupied during this period building homes to take advantage of the generous $30,000 first
home builder’s boost.
The north west was on trend for this period with sales volumes in all market brackets stepping down through the two quarters. Sales within the luxury market bracket were spread across various regions within the north west with no apparent concentration in any particular area. Once again, the middle bracket was where the greatest number of residential sales occurred. The top sale for this region was $1.5 million at Hawley Beach, a weekender and holiday spot popular with all Tasmanians. Hawley Beach is a beachside village located approximately 20
kilometres east of Devonport and 80 kilometres north-west of Launceston.
Tasmania’s northern region was also on state trend with sales volumes in all market brackets stepping down from the June quarter, although in the luxury bracket this was negligible. The first home buyer bracket in the north showed the greatest number of sales during this six month period. Like the north-west, sales within the luxury bracket were spread across several areas however the highest sales occurred in East Launceston and Relbia. The highest residential sale was at Relbia which is a well sought after rural residential suburb of Launceston.