Sales in Tasmania set to break new records in 2022

According to the Real Estate Institute of Tasmania (REIT), even with a decline in sales volume in the first six months of this year compared to last year, the continued growth in house prices is likely to put 2022 on hold. over the edge to surpass the record 2021 cumulative value of total sales of $6.2 billion.

The institute’s June quarterly figures show sales figures for the first half of this year are down 10.5% from January to June 2021. And yet the June quarter saw median prices homes rose 2.6% to $626,000. The price of land increased by 10.6% to reach $267,500, and unit prices remained stable.

The high end of the market certainly contributed to the high cumulative values ​​across the state. Market sales over $1 million increased 81.7% year over year.

REIT Chairman Michael Walsh said while the market is showing signs of slowing, the state continues to face significant supply issues for sales and rentals. He noted that the recent changes had appeared to have a much greater impact on those trying to enter the market than on those buying at higher prices.

Notably, the number of first-time home buyers fell 12% (to 821) in the first half of the year.

But the body noted that even with an observed decline in buyer confidence and a decline in bullish buyer activity, “properties continue to sell and the supply of properties to buy and rent remains our biggest challenge”.

The latest numbers certainly didn’t bode well for the state’s worsening rental crisis. Investor activity was revealed to have fallen 10% in the past six months, with the pace accelerating in the second quarter.

Mr Walsh commented that he was alarmed to see the continuation of “the contraction of the rental market, which is already under extreme pressure”.

“The lack of investment in this sector is a real concern. I don’t see any short-term solution to this problem,” he said.

The body attributed the decline to a perfect storm of rising prices, falling yields and legislative uncertainty deterring investors from participating in the state market. He also noted that of the homes sold to investors, many could be attributed to the resale of existing rental units, meaning very few new properties were becoming available.

The organization clearly hopes that the third quarter will bring a slight increase in the number of investors. Otherwise, it paints a disastrous picture.

“Any reduction in activity in this sector will only add more stress to an already overstretched rental sector,” REIT noted.

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Juliet Helmke

Based in Sydney, Juliet Helmke has extensive reporting and writing experience in business, technology, entertainment and the arts. She was previously an editor at the New York… Read More

Sales in Tasmania set to break new records in 2022

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Last update: August 10, 2022

Posted: August 11, 2022