Which Tassie suburbs are next to join the million dollar club?
Some suburbs are more exclusive than others, and some are hidden gems even astute investors haven’t cottoned on to yet. We reveal which Tassie suburbs will soon reach a $1m average house price. SEE THE LIST >>
Tasmania
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Despite dire COVID-19 fears, house prices continued to climb consistently across Tasmania with interest from interstate buyers only growing stronger in 2021.
Real Estate Institute of Tasmania president Mandy Welling has said some suburbs closer to Hobart have had significantly more luck cracking the $1 million median house price, while others still have a ways to go.
“Some areas are getting very close, but there are quite a few apartment blocks that will bring the median sales down,” she said.
But Ms Welling said Taswegians were starting to realise rural areas “offer an awful lot for the money”.
“Those areas were deemed as shack areas for the longest time,” she said.
Now, Ms Welling predicts by the end of 2021 some 20 to 25 per cent of suburbs will nab $1m sales at the top end of the scale “and we won’t be surprised by it”.
She estimated somewhere between five and seven per cent of suburbs were obtaining a median house price of $800,000 plus, but is closely monitoring factors affecting this number.
“The thing we’re watching with a keen eye is the lean towards interstate investment in Tasmania.”
“The interstate market only held 10 per cent of all the sales over the previous calendar year. We’ll be keen to see if that figure has increased in the last three months.”
Ms Welling said already anecdotally agents she had talked to had received an increased inquiry level from the mainland, with COVID-19’s effect on the international market not enough to quell the upward climb in house prices.
“If we stood back as an industry and thought ‘what sort of an impact would buyers from international markets have?’ we thought the bottom would have fallen out of the market and prices would have rolled backwards, but it had the opposite effect in Tasmania,” Ms Welling said.
“We’d assume if the (external) markets do show a lot of interest that will be tougher on our supply systems and see another increase again.”
These are the suburbs in the $1m club, and those who are next in line according to REIT’s latest statistics:
BATTERY POINT
The “battle of the two suburbs” between Battery Point and Sandy Bay for the top spot has leaned slightly more in the former’s favour of late.
REIT recorded a median sale price of $1,300,000 among the nine Battery Point house sales in 2020.
The highest sale was $4,060,000 while the cheapest was $590,000.
Already in January 2021, the only Battery Point house sold has broken new ground fetching $5,100,000.
Trends point to the historic, quaint suburb staying firmly in the million dollar club this year for the fourth year in a row – even units in the area are reaching the milestone.
SANDY BAY
Ms Welling said “no other suburbs have come close” to reaching the price points of Sandy Bay and Battery Point.
The suburb’s dearest sale recorded last year was $4,222,000 among the list of 89 house sales, but the median price was only $20,000 short of $1m.
This year, of the eight properties sold in January, the median is $1,347,500.
Will the median stay above the golden mark for the rest of 2021?
Ms Welling thinks so, with stunning views, charm and character, and proximity to cities or hubs among her top criteria for attaining million dollar status.
TOLMANS HILL LEADING NEXT OF HOBART CHARGE
Tolmans Hill on Hobart’s southern outskirts saw median prices decrease from $910,000 in 2018 to $887,000 in 2020, but the scenic suburb shouldn’t be ruled out of near future million dollar club success, with one January 2021 house sale generating $1,345,000.
Other prominent Hobart spots which could reach $1m in the coming few years include Glebe, typically fetching over $800,000, Mount Stuart, already closing a $1,400,000 sale this January, New Town, sitting at a median house price of $860,000 in January, and Hobart itself, closing in on the promising $800,000 median mark.
“New Town’s another contender, although there are quite a few apartment blocks that bring the median sales down,” Ms Welling said.
Hobart currently stands as Australia’s fourth most pricey city.
ACTON PARK
In the Clarence area, Acton Park is giving rural suburbs a good name with vast acreage, large homes and proximity to local shopping areas.
The suburb reported 12 yearly maximum sales above $1m in the last 16 years up to 2020.
“I think at some point through 2021 we’ll see the median sale price nudge the $1m,” Ms Welling said.
“For the last quarter it was about $940,000.
“Acton Park is only about 12 minutes’ commute from Hobart CBD. You can get a substantial property with about five acres of land.”
Elsewhere in Clarence City Council Ms Welling has her eye on some other burgeoning ‘burbs.
“I’ve thought this for quite some time but never vocalised it: Sandford and Cremorne,” she said.
“I think because there is a lot of development happening there at the moment, more reconstruction, more land released, as Taswegians we’re realising these areas offer an awful lot for the money.”
Sandford and Cremorne’s median prices were sitting at $877,500 and $687,000 respectively in 2020-21.
The Eastern Shore also boasts the country’s fastest selling suburb.
THE RISE OF KINGBOROUGH
Ms Welling has said Taroona, Kingston Beach and Blackmans Bay are getting “very close” to their new club status.
“When you look at Taroona, there’s not a huge element of apartment blocks, so there’s a consistently high sale price,” she said.
“Blackmans Bay has those elevated sites and majestic homes. Kingston Beach will start to see the million dollar tag more often throughout 2021.”
The $1m median might take a few years to achieve, Tinderbox could be the first to breach the milestone with last year’s median reaching $975,000 and this January’s only house sale for the area nabbing $1,565,000.
Kingston Beach, Howden and Kettering – the gateway to Bruny Island – all scored median prices above $800,000 and Taroona scored $790,000, indicating these Kingborough Council spaces aren’t too far behind Hobart’s top sellers.
TREVALLYN
The south rules the roost for high value suburbs, but the REIT president has warned us not to discredit the north.
“Trevallyn has proximity to Launceston CBD, a beautiful array of colonial and modern properties, a diverse mix of styles and fantastic views,” Ms Welling said.
The maximum price at Trevallyn for 2020 was $1,350,000, but the median still sat at $430,000.
Other northern spots in the Launceston City Council area seeing their highest sales for 2020 breach $1m include West Launceston, Dilston, East Launceston, Invermay, Kings Meadows and Launceston, but these zones may not be quite as close as their southern counterparts to crossing the elite million dollar median threshold.
The North West is one spot Ms Welling estimates will take some many years yet to enter the exclusive $1m club.
“Devonport is starting to get half-a-million as quite a regular occurrence.
“The north west coast, even though there’s been substantial growth in properties, they’re a long way away.”
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