New Norfolk homes top Tasmania’s regional town ladder with every sale turning a profit

Every home in one regional Tasmanian town sold made a profit, while barely any homes in Greater Hobart were sold at a loss in the June quarter. SEE THE LATEST PROPERTY UPDATE >>

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THE majority of Greater Hobart homes sold in the June quarter made a profit, a report has revealed.

But one council area took profitmaking sales to the extreme with every single transaction making money compared to the last time these homes changed hands.

Which municipality? The Derwent Valley.

CoreLogic’s new Pain & Gain report shows that while Derwent Valley sellers did not make as much money as other council areas, 100 per cent of June quarter sales made a median profit of $55,013.

Petrusma Property senior consultant Tegan Rainbird said this corner of the market was “thriving”.

“Every property is selling with offers in competition,” she said.

Homes in the Derwent Valley netting a massive profit.

“The demographic is mostly first home buyers, although because you can secure a superior property for your money, we are noticing more buyers are moving out further from the northern suburbs.

“Buyers certainly love the price point.

“New Norfolk enjoys all the conveniences of other city suburbs with a buzz around local cafes, the new distillery and upgrades to parks and events like the weekly New Norfolk fresh produce market.”

New Norfolk and the Derwent Valley are ‘thriving’.

Director of New Norfolk Distillery, Tarrant Derksen – just one of the area’s many attractions. Picture: PATRICK GEE

PRD Hobart property consultant Paul Reed believes the Derwent Valley will continue to grow each year and may emulate an area like Brighton with strong year-on-year growth if demand and affordability continue.

PRD consultant Paul Reed sees a bright future for the Derwent Valley.

Mr Reed said the market was extremely competitive as demand is far outweighing supply.

“Open homes are seeing good numbers and receiving multiple offers above the price guide at a first open home is normal,” he said.

“While dominated by local buyers, investors also see The Derwent Valley as a good area to get into with rental returns often higher than suburbs closer to Hobart’s CBD.”

Of Hobart’s seven municipalities, the report revealed only one area — Kingborough at 89.2 per cent — where gross profitmaking sales were below 90 per cent.

Alongside the Derwent Valley’s perfect strike rate, Glenorchy was next best at 99.2 per cent followed by Brighton (97.9 per cent), Clarence (97.1 per cent), Sorell (96.2 per cent) and Hobart (95.3 per cent).

The report placed Hobart at No. 1 for the highest median profits ($316,500) followed by Kingborough ($248,000) and Clarence ($231,750).

Across Greater Hobart, the total value of the quarterly profits was over $149 million compared to $3.49 million in loss-making sales.

Nationwide, Hobart recorded the lowest rate of loss-making sales among the capital cities. A crown it has held since early 2018.

The average across the other capitals was about 20 per cent loss-making resales compared to 3.2 per cent in the southernmost city.