What’s happening in Tasmania’s property market?

It’s nearly time to say goodbye to 2022, a year that was decidedly less ‘eventful’ than its immediate predecessors. However, amid the calm came a series of interest rate rises that helped put an end to runaway property prices.

But while there might be lots of negative media commentary about the softening market, it doesn’t mean you should put off buying property in Tasmania.

Quite the opposite, in fact.

Here are four reasons why:

1. Buyers have regained the upper hand

Spring has seen listing numbers increase significantly when compared to September 2021,

according to recent PropTrack data.

In Hobart, for example, new listings rose 12.8% year-on-year, with that surge leaving total stock up by a massive 72.1% – a record year-on-year increase for an Australian city.

Buyers aren’t just enjoying more choice in Hobart, either, with new listings in regional Tasmania 10.3% higher in September than the year before.

While supply is up, demand is down. So sellers are starting to drop their prices, with the average discount in Hobart being 4.6% over the September quarter, according to CoreLogic.

It’s a similar story in regional Tasmania, with sellers discounting their asking prices by an average of 3.6%.

2. Vacancy rates are crazily low

Hobart has one of the tightest rental markets of any Australian capital city, with the vacancy rate sitting at just 0.5% in September, according to SQM Research.

What’s more, the vacancy rate is even lower in other parts of Tasmania including Burnie (0.2%) and the West Coast(0.4%).

When vacant rentals are in such short supply, tenants face fierce competition for available properties, which generally leads to a sharp rise in rents.

3. Home values are still on the rise

As every savvy property investor knows, there are multiple Tasmanian property markets, not just one.

So while property price growth might be stalling in Hobart, prices in West Tasmania and North West Tasmania have reached new peaks, according to PropTrack.

Then there’s South East Tasmania, where prices jumped 17% over the year to September.

4. Tasmanian property is affordable

Tasmanian housing values might have skyrocketed over the recent boom, but property remains affordable for many buyers – especially in comparison to the mainland.

For example, Domain’s latest house price report found median house prices were just $370,000 in George Town and $390,000 in Burnie. That’s much cheaper than the east coast capital cities – and the quality of life is better too.

Want to buy a quality home or investment property in Tasmania? To discuss your options, call 0439 639 508, email [email protected] or fill in this online form.

Remember, this article does not constitute financial or legal advice. Please consult your professional financial and legal advisors before making any decisions for yourself.