McGrath Launceston principal Josh Hart. Picture: Supplied
What do Invermay and South Launceston have in common?
They were named Tasmania’s hottest housing markets in a new national property report, and listed among the nation’s Top 50 supercharged suburbs.
Hotspotting’s quarterly Price Predictor Index asserts that sales volumes are a forward indicator of price movements.
With median house prices of $500,000 and $600,000, these Tassie suburbs have recorded quarterly sales increasing from 13 to 34 in Invermay and from 12 to 32 in South Launceston; a consistent trend over the past five quarters.
Hotspotting’s autumn report placed Launceston among the nation’s Top 10 municipalities, with the last four quarters rising from 358 sales to 367, 393 and then 440.
Regional Tasmania, 52 markets, was also highlighted in the report, with sales moving from between 1631-1680 in 2024 to between 1838 and 2019.
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Hotspotting founder and property analyst Terry Ryder.
Hotspotting managing director Terry Ryder said Launceston stands “head and shoulders above the rest”.
He said sales in the latest quarter were 29 per cent higher than one year ago.
“Of the 16 major Launceston markets, 75 per cent have positive classification in the PPI report, including six rising areas and five consistent areas,” he said.
McGrath Launceston principal Josh Hart said across Greater Launceston, stock levels are closer to Covid levels than they are to a typical healthy market.
He said the volume of stock for houses, land, townhouses, units during the pandemic was under 600 properties, whereas a steady market would have up to 1200 listings.
Currently there are 920 properties, Mr Hart said.
McGrath Launceston principal Josh Hart. Picture: Supplied
“And the unspoken truth is that 30 per cent of those 920 would be under contract, making the figure closer to 700,” he said.
“Strong results are being achieved as buyers prioritise securing a property.
“Longer settlements and rent-back positions are increasing to allow people time to find what they want to buy after selling.”
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No.443 Wellington St, South Launceston is for sale between $785,000-$875,000.
No.7 Carrera Pl, Norwood is priced between $1.9m and $2.2m.
Mr Hart said FHB and investors are active in the $450,000-$600,000 price bracket, especially with rental stock low, few vacancies and yields high.
“The middle sector is being driven by families, while the prestige market increasingly attracts NSW and QLD buyers relocating because of the climate,” he said.
“Previously, that was Baby Boomers, but now younger enterprising professionals are making the same decision.”
Meanwhile in the south, Hotspotting ranked Hobart on the winner’s side of the Winners and Losers section of the report.
Mr Ryder found Hobart had no markets where transaction levels were declining.
“The Tasmanian capital’s market is more about steadiness, with evidence of moderate growth, rather than a dramatic upsurge,” he said.
“The Glenorchy municipality, popular for affordable options, has recorded steady sales levels in the past six quarters, headed by consistent markets in Lutana and West Moonah (houses) and the suburb Glenorchy (units).”
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He noted upward momentum in the Hobart and Clarence LGAs.
“Sales in the inner-city rose by 16 per cent in the last quarter, while Clarence recorded a 14 per cent increase,” he said.
No.1/16 Regina St, Glenorchy is on the market for $625,000-plus.
No.13 Audley St, North Hobart is priced at $1.73m.
Principal at South Property Group, Nick Cowley said the Hobart market has remained steady over the last six months, slightly trending upward by about 2.5 per cent year-on-year.
“I would expect this momentum to remain the same over the coming months,” he said.
Mr Cowley said investors dominated the market significantly in the sub-$700,000 bracket during the December quarter, increasing more than 100 per cent compared to the previous year.
“Sixty-five per cent of sales were from mainland investors. The relentless pursuit of stock we are seeing daily continues,” he said.
Nick Cowley, principal of South Property Group
Mr Cowley said with more interest rate hikes predicted, the future of the market will be interesting to see.
“Although this has no bearing on the sub-$750,000 demographic,” he said.
“Low stock numbers will continue to hold up prices through the cooler months.
“The Australian Government’s 5 per cent Deposit Scheme changes and the State Government’s $30,000 First Home Owner Grant will continue to support young buyers.
“We are expecting a multitude of large developments, units and houses, to hit the market by spring — so keep an eye out for those.”
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