No.135 Dorans Rd, Sandford was listed for sale by Peterswald at $1.55m, and quickly sold for $1.67m. Picture: Supplied
Seven Tasmanian suburbs are among the nation’s top performing areas, new data reveals.
PropTrack analysis reveals 3224 suburbs nationwide experienced price increases exceeding 10 per cent.
December quarter figures show houses in Gagebrook and Mayfield recorded 12 per cent increases, while Chigwell, Sandford, Herdsmans Cove, and Shorewell Park jumped by 13 per cent.
Units in New Norfolk also increased by 13 per cent.
Most of these suburbs have median sale prices in the $400,000s, aside from Chigwell at $557,000 and Sandford at $1.117m. And between $45,154 and $62,894 has been added to the median value in these areas.
The outlier was the more expensive Sandford, where a 13 per cent increase added over $127,000 to its median price.
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No.135 Dorans Rd, Sandford.
No.135 Dorans Rd, Sandford.
PropTrack economist Anne Flaherty noted that, at a national level, the majority of these rapidly growing suburbs were more affordable areas, particularly those with prices below $800,000.
“Affordability is driving more people to cheaper suburbs,” she said.
She attributed the heightened demand for more affordable real estate partly to increased activity from investors, who often target units in some of the cheapest capital city suburbs.
These investors have frequently found themselves in competition with first-home buyers, who have been supported since October by the expanded First Home Guarantee Scheme.
This initiative allows eligible buyers to purchase properties with deposits as low as 5 per cent, bypassing the need for costly lender’s mortgage insurance.
Chigwell homes.
Ms Flaherty highlighted that many properties affordable enough to fall within the price caps for this first-home buyer support are the same areas attracting investor interest.
“Investors have been coming back into the market looking for long-term growth. It’s quite clear that we have a housing shortage that will take a while to correct,” she said.
“Investors are seeing that population growth is strong, and we are not building enough, plus there have been interest rate cuts, so there has been an expectation of long-term (value) growth.”
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Meanwhile, Hotspotting has named Tasmania’s major population centres in its Top 10 prospects for capital growth.
The National Top 10 Best Buys report identifies future growth markets with a focus on “long-term, lower-risk growth rather than short-term hype”.
Hotspotting founder Terry Ryder said greater Hobart’s combination of physical constraints, high-value industries and a pipeline of investment is set to underpin its future performance.
“Economically, it is anchored by health care, marine science, advanced manufacturing and Australia’s Antarctic research sector, all drivers that create stable employment and consistent housing demand,” he said.
“Glenorchy is a key focus because it is currently carrying much of the momentum across the region and remains one of the more affordable entry points in greater Hobart. Buyer demand is rising.
“Looking ahead, planning targets for additional housing are intended to be met largely through infill and consolidation, which is an approach that supports established suburbs by concentrating new supply where demand is strongest, while preserving the scarcity that underpins long-term growth.”
A 25-unit residential complex at No.60 Lower Rd, New Norfolk was sold by Elders Commercial last year.
Hotspotting director Tim Graham said greater Launceston’s diverse economy — as well as its housing affordability by national standards — helps to sustain solid yields and keeps the buyer pool wide.
Mr Graham said with transaction activity improving across multiple suburbs and an accessible price base, Launceston presents a practical, repeatable future growth story for investors seeking momentum without big-city price points.
“The forward drivers in the region are significant with a major, multi-year upgrade of the Launceston General Hospital set to expand health capacity and lift employment,” he said.
“Renewable energy projects proposed and approved across the region add another layer of job creation and investment confidence.
“A standout catalyst is advanced technology investment, including a large AI facility under construction in St Leonards and plans for an AI-focused zone.”
Looking ahead, Ms Flaherty cautioned that many of the top growth markets of 2025 are unlikely to sustain their rapid pace in 2026, as buyer demand may taper off with continued price increases.
Instead, buyers are expected to gravitate towards new suburbs offering perceived better value, with the focus on affordability continually shifting.
“It’s complex,” she conceded.
“Price growth can continue in very competitive markets because buyers who have been outbid or see very stiff competition are more likely to stretch budgets and offer more than they would have originally planned. But you can get markets reaching a huge level where they are no longer as affordable any more.
“We have seen cases of prices increasing ($200,000) in a year and as these areas become less affordable, there are fewer buyers.”
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Ms Flaherty concluded that the First Home Guarantee Scheme will remain a key driver of demand throughout 2026, ensuring strong performance for suburbs that fall within the scheme’s price caps in each state.
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