Stunning spring selling season supplies superb sales in market’s top end

Luxury homes sales have spiked in Tasmania and obliterated past records for properties worth $1 million or more – often, much more. SEE THE BIG SALES >>

Jarrad Bevan

@JarradBevan

3 min read

November 28, 2021 - 5:00AM

News Corp Australia Network

Is this the fastest price growth in history?

THE prestige end of Tasmania’s property market has experienced a bumper spring with 251 homes added to the gigantic list of properties sold this year for $1 million or more.

And local agents say this is no blip on the radar, it’s normal.

While it was clear by autumn that 2021 was going to be one for the record books, few would have forecast that the Tassie property market’s top end would demolish its previous benchmarks by as much as it has.

With 93 sales in September, 87 in October and 70 in the first 26 days of November, the state’s house or apartment $1m-plus sales have zoomed past 680 this year.

The previous benchmark, set just last year, was 256 sales over the magical million-dollar line, according to Real Estate Institute of Tasmania statistics. Prior to 2020, the high was 181.

Peterswald for property director Harry Coomer said the capital growth in Tasmania had been unreal with 20-30 per cent added to home prices this year.

He said to get a foot in the door of the pointy end of the market was undoubtedly expensive, but no more so than other capital cities.

“In any city, walking distance to the CBD would put you in the $1m-plus price range,” he said.

“For our inner-city ring suburbs, to find a reasonable home, you would want to have a $1m-plus budget.”

Peterswald for property director Harry Coomer.

No.311 Davey St, South Hobart, was sold within days of hitting the market and for a cracking price.

Mr Coomer said the shortage of homes for sale had helped keep sale prices strong.

“With interest rates so low, people might feel that they can be more aggressive with their lending,” he said.

“Some people might feel comfortable holding a larger mortgage given the growth of the Hobart market.”

Petrusma Property consultant Stuart Benson said the “comfort” people have with high levels of debt can be surprising.

“However, I think the growth we are seeing in the upper end has been pushed higher by the activity in the bottom and middle of the market surging upward.

“Entry level homes can be $500,000 or $600,000 now and that’s not a cheap proposition.

“But what was once a $500,000 home is now $800,000. Price brackets are all pushing higher.”

Petrusma Property property consultant Stuart Benson and executive assistant Kate Priest.

It’s easy to see why so many buyers had the eyes on No.584 Oceana Dr, Howrah.

Mr Benson said people who bought around the time of the global financial crisis would have seen growth to a degree they would never have expected possible.

“Now they can afford the aspirational home, the acreage or beachside property, without taking on much extra ‘debt stress’,” he said.

“I can’t see our $1m-plus bracket declining. Even with significant interest rate pressure, it is hard to see a noteworthy reduction.

“Often owners in the upper part of the market are selling because they want to, not because they have to.”

Looking ahead, Mr Coomer believes Tasmania will record steady growth through to the middle of next year.

“Winter could be our test,” he said. “Perhaps interest rates will rise by then, which might change the feel of the market.

“With borders opening and Australia returning to the closest thing we could expect to ‘normal’, I wonder if next year Tasmania will still be seen by interstate buyers in the attractive light that it is right now?”

SOME OF TASSIE’S TOP SPRING SALES

Source: CoreLogic, realestate.com.au

251 Silver Hill Rd, Cygnet – $1.425m – Harcourts Huon Valley