Virus fails to dampen Tasmania’s strong real estate market

The coronavirus pandemic has failed to dampen housing market confidence in Tasmania, according to new figures.

TASMANIA’S housing market stood up and stared coronavirus in the eye, with only a small drop in houses sold and an increase in values during May.

The number of houses sold in May fell by 5.3 per cent, while land sales fell more than 9 per cent — due mostly to a lack of stock in the state’s North-West.

But Hobart house sales jumped by a stellar 20.8 per cent in the month from April to May as shutdown restrictions eased. Launceston experienced a more modest 5.6 per cent increase in sales, while a 17.2 per cent fall was recorded in the North-West.

“All areas across the state experienced an increase in values this month.,” Real Estate Institute of Tasmania president Mandy Welling said.

Real Estate Institute of Tasmania president, Mandy Welling.

The median price rose 7 per cent in Hobart, just under 5 per cent in Launceston and by 11 per cent in the North-West.

Vacancy rates remained steady. The median rent for a three-bedroom house in the North-West was $300 a week, compared to $340 in Launceston and $420 in Hobart.

“These statistics reflect a confident market place which has remained steadfast through the pandemic,” Ms Welling said,

“The focus will be on growth and the ability to increase construction levels to absorb the shortfall of available stock across the state.”