According to a recent report by the Real Estate Institute of Tasmania (REIT), the The state surpassed its highest transaction count ever in 2003, with cumulative sales of $6.2 billion generated from 12,107 residential properties sold in 2021.
Prices and rents are trending up due to high demand and low supply. As a result, property sales rose 41.9% over the year, with statewide median prices hitting new highs: homes are now at $520,000 (up 23.85%), units at $432,000 (up 23.4%) and land at $210,000. (up 31.3%).
Double-digit house price increases were reported in Greater Hobart, which saw a 24.9 per cent increase to $699,500, followed by Launceston at $491,000 (24.3 per cent increase) and centers Northwest at $399,000 (22.8% increase).
Buyer appetite for properties over $1 million was extremely high. The REIT reported a 207.8% increase in transactions for this price, from 256 homes in 2020 to 788 properties in 2021. In this sector of the market, 77.3% of properties were bought by locals and only 22 .7% by mainland buyers. – indicating sustained demand.
And while the number of people moving into the state from the mainland has increased, it has yet to reach the “tsunami level” predicted the previous year based on figures released by REIT.
Mainland buyers accounted for just 18.1% of total buyers, although they increased by 54.1% (2,190) from the previous year. Beach homes with a median price of $480,000 attracted 1,349 of those mainland buyers, while 841 were investors who bought properties with a median price of $412,000.
Although the number of in-game investors rose 33.9% to a total of 2,329 sales, REIT said the investor sector did not break previously set records. in 2017 and 2018.
Moving on to First Time Home Buyers (FHB), 1,836 buyers entered the market for the first time, remaining on par with 2020 numbers. However, what was noticeable was a shift in their sales interest from land (down 28.3%) to sales of units (up 12.6%) and houses (up 4%).
Similar to the real estate market scenario, rental prices are rising due to vacancy rates that are at historically low levels. Rents for a three-bed property have risen by $35 a week in Hobart, $50 in Launceston and $40 in North West centres.
On the other hand, rents do not follow the rise in real estate prices; therefore, investment returns continue to decline. Tasmania saw yields fall from 4.7% in Hobart, 5.4% in Launceston and 5.6% in the North West in 2018 to 3.7%, 4.1% and 4.4%, respectively , currently.
Property refers to something tangible or intangible over which an individual or business has legal rights or ownership, such as houses, cars, stocks, or bond certificates.