‘Market has levelled out’: June housing rebound on sales, pricing

June’s housing stats were stronger than the March quarter, but down compared to 2022 as the property market finds balance.

TASMANIA’S 2395 property sales in the June quarter were worth $1.49bn.

The latest Real Estate Institute of Tasmania report, released Tuesday, showed that the market was up on the previous quarter in many areas, but trending lower compared to June 2022.

June transaction numbers were up 14.6 per cent on the March quarter, but down by 10.2 per cent on the same time last year.

House sales, 1689, were up 14.1 per cent compared to March, but down 5.2 per cent against last year.

Land sale numbers improved 18.1 per cent over March but were 36.7 per cent lower than 12 months ago.

Investor numbers increased from 227 to 249 over the quarter, yet they were down 44.5 per cent on the same time last year.

REIT president Michael Walsh said this decrease was the most striking figure in the report.

“It is a complex issue that has been decades in the making,” he said.

“Proposed solutions in the rental sector, such as rent caps, have not worked worldwide. Why would it be different in Australia?”

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Investor numbers have declined compared to last year.

Buyers from interstate who purchased to move to Tassie improved slightly over the June quarter from 242 in March to 273 in June, but were 40.9 per cent lower annually.

The report showed first homebuyer numbers grew 17.4 per cent over the quarter to 419. There were 308 houses, 71 units and 40 land lots sold.

Following interest rate rises and tightening lending from banks, Mr Walsh said some first-time buyers might be home hunting at a lower price bracket this year than last year.

Tasmania’s home sales of $1m-plus increased 36.6 per cent quarterly to 239 transactions. This was 10.5 per cent down on June 2022.

However, Tasmanian buyers continue to drive this part of the market, buying about 85 per cent of these properties.

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No.32 Wiregai Ct, Sandford was sold for $1.2m by Fall Real Estate.

Seven of Tasmania’s highest selling suburbs had median house prices exceeding $1m, led by Eastern Shore lifestyle suburb Sandford at $1.3715m. Sandy Bay and Kingston were the next highest at $1.325m and 1.175m.

At the most affordable end of the market, Rosebery had a median house price of $195,000, alongside Queenstown ($218,000) and Railton ($315,000).

Burnie recorded the most sales in the quarter, 72, followed by Devonport, Kingston, Sandy Bay and New Norfolk, ranging from 29 to 58.

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At the LGA level, there was over $202m worth of property sold in Hobart, $188m in Clarence, and $160m in Launceston.

Rental vacancy rates have hit their highest level in three years.

With June’s results eclipsing March, Mr Walsh said “hopefully the worst is now behind us” as property returns to a pre-Covid “normal market”.

“Inflation and its impact on the rising costs of living have had their part to play as well,” he said. “Both have placed considerable pressure on the lifestyle of many Tasmanians and impacted consumer confidence.”

REIT president Michael Walsh.

Mr Walsh said significant growth in the number of properties for sale and for rent will generate an increase in supply, which in turn will place a downward pressure on prices and rents.

“The market has levelled out and we should see more stability across the sales and rental markets,” he said.

JUNE SOUTHERN TAS STATS

1195 transactions worth $842m

821 house sales, median $700,000

223 unit sales, median $525,000

42 days on average to sell a house

Rental vacancy rate 1.8 per cent

Greater Hobart three-bedroom rental median $525

133 interstate-based buyers

9.3% of sales were to investors

Source: Real Estate Institute of Tasmania