A new billion-dollar benchmark is becoming the norm in Tasmania.
The magic number is $1.9bn.
In the Real Estate Institute of Tasmania’s latest quarterly report, released Friday, this figure was the total value of the property sold in the March quarter: $1.925bn.
This followed the previous quarter where $1.926bn worth of property was sold.
REIT president Russell Yaxley said Tasmania's property market got off to a hot start this year. Picture: Supplied
As recently as 2012, the total for the whole year was $2.07bn. And in 2002, the year’s total was $1.68bn.
This striking result was one of many positive outcomes for Tasmania in the first three months of the year, despite the Reserve Bank of Australia lifting the cash rate in February, March and May too.
REIT statistics show there were 2990 transactions statewide, an increase of 3.3 per cent on the previous quarter and a massive uplift of 24 per cent compared to the same time last year.
It was also the highest number of sales recorded in the past three years.
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Real Estate Institute of Tasmania president Russell Yaxley.
With prices rising 4 per cent over the quarter, Tasmania’s median house price sits at a record high of $676,250.
Units also achieved a benchmark median price of $550,000.
The number of land sales shot up from 248 to 432.
Home sales priced in excess of $1m dipped by 9 sales compared to the December quarter, settling at 291. However, they were up by 80 sales compared to the same time last year.
As usual, Tasmanian buyers purchased 77.4 per cent of homes in this price bracket.
Over the past year, homes sold faster on average in every region: Hobart’s time on market dipped from 38 to 23 days, while northern markets shifted from 41 to 21 days.
REIT president Russell Yaxley said the report’s findings reflect the strong results seen in the market so far this year.
“It is an example of the resiliency of our market,” Mr Yaxley said.
“The main population centres, Hobart, Launceston and the North West Coast have all set new record median prices.
“Demand has held firm, despite two rate increases in this quarter.
“An area that dropped off is the East Coast, which was down by 6.5 per cent.”
No.61B Beach Rd, Kingston Beach is listed with Elders Hobart at $1.1m-plus.
Fall Real Estate has No.193 Warwick St, West Hobart on the market for $825,000-plus.
The report showed that first-home buyer participation was up by 8 per cent quarterly, with 307 house purchases, 104 units and 88 blocks of land.
“FHBs were up by 11.6 per cent annually, which is good news,” Mr Yaxley said.
“The government’s first homeowner support has helped people buy homes. I’d expect demand may cool a bit with the coming changes, such as no more duty exemptions.”
With 695 investor purchases, this part of the market was up by 6.9 per cent quarterly and 129 per cent annually. It was the highest level of investor participation in the market since 2003.
The report found that interstate investors accounted for 69 per cent of sales, with a large proportion of the stock being sold to investors coming from other investors leaving the market.
“While our numbers are great, the influence of buyers from outside of Tasmania is pretty clear,” Mr Yaxley said.
“Our land sales is another highlight, with the median falling by $2000 while the number of sales surged by over 70 per cent.
“Cheaper land has been very popular with purchasers trying to break into the market.”
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