Launceston and North East units moving quickest in Australia’s regional market

A regional property market in Tasmania has seen the highest spike in sales prices around the country, with COVID-19 travel restrictions creating more opportunity for local buyers.

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TASMANIA has the hottest regional unit market in the country, with flats in Launceston and the North East showing the highest yearly growth and shortest time on market.

The North and North East region had the highest yearly growth in regional units, up 14.8 per cent, selling on an average of 26 days according to CoreLogic’s March-July regional review.

Agents on the ground say the shift in who can buy, due to coronavirus, is giving locals a better chance at securing properties, rather than interstate and Asian buyers.

Sharin Imlach from Harcourts Launceston said units were selling off-market or above asking price.

“I’m finding people are buying these not as investments but to actually move into,” she said.

“I definitely think since COVID and because we’ve had limited – or nobody coming into the state our local buyers are having the opportunity to be able to purchase.

7/47 Welman Street, Launceston, Tas 7250 recently sold for $307,000.

Ms Imlach said the property was an example of many that have been selling well.

“Whereas they were getting a pipped at the post … interstate buyers were coming in cashed up, also the Asian market, foreign buyers were buying a lot of the investment properties which now has stopped due to COVID.

“Our local buyers, first home buyers and investors are getting that opportunity to get into the market and of course with the interest rates so low it’s working out really working out for them.”

BEST AND WORST PERFORMING REGIONAL UNIT MARKETS – JULY 2020

• Highest Yearly growth: Launceston and North East, Tas: 14.8%
• Lowest yearly growth: Hume, Vic: -11.1%
• Highest change in sales vols: Latrobe – Gippsland, Vic: 34.6%
• Lowest change in sales vols. Launceston and North East, Tas: -23.7%
• Shortest days on market Launceston and North East, Tas: 26 days
• Longest days on market: Wide Bay, Qld: 105 days
• Lowest vendor discounts: Ballarat, Vic: -2.1%
• Highest vendor discounts: Townsville, Qld: -6.2%

Justin Goebel from LJ Hooker, Launceston said he was inundated with enquiries for a bargain-priced $166,000, two bedroom apartment at 3/11 Leslie Place, South Launceston.

“It was at a price point where you can’t pick up much ... within the first 24 hours I had about 20 enquiries on it,” he said.

Unit 3/11 Leslie Place, South Launceston, Tas 7249 recently sold for $166,000.

“There’s a few selling before they go to the market and bits and pieces as well, the market is moving quite well in Launceston.”
Both agents say a mix of buyers are looking; first-home buyers, downsizers, and local investors, as well as the ever-present interstate market.

However both believe more locals are able to purchase, with coronavirus restrictions keeping potential interstate buyers at arms length.

Mr Goebel said the property did need some work, however at the price point it was at, sold well.

“We’re finding investors from the mainland are still enquiring as something as such because of the opportunity to develop out the back,” Mr Goebel said.

“Since COVID hit the locals have had a little bit more of a chance to purchase around here, which is good in a way, because in the lead up to COVID there was a lot of interstate activity.

“It’s still there but locals are getting their foot in the door a lot more.

“It was to the point before COVID hit that locals were missing out all the time due to people buying without even inspecting the properties.”

BEST AND WORST PERFORMING REGIONAL HOUSE MARKETS – JULY 2020

• Highest yearly growth: Illawarra, NSW: 12.0%
• Lowest yearly growth: Bunbury, WA: -6.3%
• Highest change in sales vols: Illawarra, NSW: 14.0%
• Lowest change in sales vols: Launceston and North East, Tas: -13.8%
• Shortest days on market: Ballarat, Vic: 30 days
• Longest days on market: New England and North West, NSW: 99 days
• Lowest vendor discounts: Ballarat, Vic: -2.4%
• Highest vendor discounts: Townsville, Qld: -5.9%

The latest report from CoreLogic shows regional housing values have held firm through the coronavirus pandemic, with dwelling values across the combined regional areas of Australia slipping by only 0.1 per cent between March and the end of July, while capital city home values are down two per cent over the same period.

Head of research Tim Lawless said the increase in unit values in Launceston and the North East tipped mainland areas such as Illawara and Ballarat.

“Regional areas offer up a variety of advantages and risks compared with their capital city counterparts,” he said.

“On the positive side, housing prices tend to be lower, providing a more affordable entry point to the market, population densities are generally lower which is something that might be even more appealing as we move through this pandemic, and in many examples, regional areas will offer some lifestyle advantages, either via the locations proximity to the coastline or wide open spaces.

“On the downside, regional economic conditions can be more volatile, especially those areas that are heavily dependent on a single industry for economic prosperity, and some areas may not show the same level of amenity and access to essential services as a capital city or major centre.”

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Originally published as Launceston and North East units moving quickest in Australia’s regional market