Forget Hobart, here are Tassie’s home value growth hotspots

1 month ago 17

Launceston suburb Newstead is the state’s pricing growth king. Picture: Roger Lovell

HOMEOWNERS in this Launceston suburb are sitting pretty.

About 3km east of Tassie’s northern capital city, Newstead has topped PropTrack’s September quarterly home values charts.

Home to over 5700 residents, Newstead houses have recorded solid pricing growth, 4.3 per cent, in the three-month period to reach a median of $692,757.

Its units sector rocketed sky-high with a whopping 20.2 per cent uptick. The median grew by $82,272 quarter-on-quarter.

Units in the suburb Launceston were up by 15.8 per cent, Ulverstone 11.1 per cent, Devonport 7.9 per cent, and Riverside 7.8 per cent.

The only Hobart unit suburb in the Top 10 was Oakdowns on the Eastern Shore, up 2.8 per cent.

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No.6 Newstead Crs, Newstead is for sale with In Situ, priced at “Offers over $1.6m”. Picture: Supplied

For Hobart houses, Midway Point performed the best with 2.3 per cent growth that took the median from $603,088 to $617,040.

The state’s largest quarterly fall for houses was recorded in Margate, sliding from $849,734 to $771,870 when compared quarterly.

The worst unit performance was in Lindisfarne, down by 5.6 per cent.

In Situ Property director Kristi Seymour said Newstead has always been a “favoured suburb” due to its proximity to Launceston’s CBD and several fantastic schools.

“It has wider, leafy streets and typically block sizes are larger than in neighbouring suburb, East Launceston,” she said.

In Situ Property director Kristi Seymour. Picture: Supplied

“Newstead features more brick housing options than the traditional 1900s weatherboard homes found in South, East and West Launceston.

“Alongside great schools, Newstead has excellent amenities, including parks, shops, doctors and public transport.”

Of the suburbs that met the PropTrack report’s criteria, and using an automated valuation model, 104 house suburbs were analysed with 47 recording quarterly growth figures, one sitting at exactly 0 per cent, and 56 had falling median prices.

There were fewer unit suburbs that met the minimum number of transactions, with 11 recording a price rise and 16 falling.

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Real Estate Institute of Tasmania president Russell Yaxley. Picture: Supplied

Real Estate Institute of Tasmania president, Russell Yaxley, said based on the current spring activity, he would expect to see these figures trend towards more growth in the coming quarter.

He said local factors can play a role in the overall performance of particular suburbs.

“There can be slight differences from suburb to suburb, some may have new developments or improved infrastructure, making them more attractive,” he said.

“It’s positive to see the north and northwest performing well. The investment from the state government over recent years is welcomed and makes living and working in these regions very attractive.

“There is still value for money in the north and northwest markets, and you can live in the best state of Australia.”

Belle Property has No.10 Kenyon St, Newstead listed at “Offers Over $1.15m”. Picture: realestate.com.au

No.23 Kenyon St, Newstead is priced at “Offers over $829,000”, it is listed for sale with The Agency. Picture: realestate.com.au

With three northern suburbs recording double-digit unit price growth, Mr Yaxley said affordability was a major factor.

“Affordability is playing a key role with first home buyers right now taking the opportunity to get into the market,” he said.

“It’s not too late to invest in Tasmanian real estate, there are plenty of opportunities for investors and the rental returns are still solid for investors statewide.”

PropTrack economist Anne Flaherty said Tasmania’s largest growth results during the pandemic property boom were in Hobart, and since then there has been a correction.

However, in the rest of the state, the corrections have not been as large as what’s been experienced in the capital city, she said.

“Another factor is affordability. Although prices have come down in Hobart, when comparing income to median prices, Hobart is still among the least affordable cities in Australia,” Ms Flaherty said.

“A lot of people would be looking to buy outside of Hobart for affordability purposes.”