By Monty Bovill
There are predictions Tasmania’s housing boom will shift outside of Hobart, with the property market in Launceston and the north-west showing strong signs of growth.
According to the Real Estate Institute of Tasmania (REIT), 2017 was Launceston’s best year in the last decade in regards to the number of properties sold.
The developing trend comes as the latest figures detailed in CoreLogic’s Pain and Gain report for the March Quarter show just 0.6 per cent of sales in Hobart resulted in a loss.
REIT president Tony Collidge said greater Hobart was not the only region in the state on the rise.
“We are seeing prices increase in Launceston, and the number of properties for sale is starting to decrease, which is a sign of a maturing market,” he said.
“We are seeing the exact same thing starting to happen on the north-west coast.”
Mr Collidge said the figures were exciting for Tasmania.
“Now that profits have gone higher, it does enable developers to come into the market place and be able to build housing, which before was unattractive because of the below-medium prices of property,” he said.
The positive signs for the north come as a new report shows properties sold in southern Tasmania are generating greater profits for owners.
According to the latest figures detailed in CoreLogic’s Pain and Gain report for the March Quarter, the median profit was $245,000 for properties sold in the Hobart local government area, up from about $180,000 for the same time last year.
Mr Collidge said it was likely that profits would climb further.
“I believe that prices will continue to rise for the remainder of this year, and that is because there is really strong demand still in the market place,” he said.
“It wouldn’t surprise me if all regions were at about 100 percent profit.”
According to the CoreLogic report, each council area in the greater Hobart region had over 93 per cent of sales generating a profit.
Mr Collidge said the conditions Tasmania was experiencing could be seen across the country.
“Whilst a lot of people aren’t happy to see prices increasing, they are just increasing in line with every other capital city in Australia,” he said.
“If you look at Hobart’s performance over a 17-year period, and compare it against all the other capital cities, we are fifth on the amount of growth that has happened within the market place.”
Even though the figures were positive, he said they showed the market was correcting itself after prices dropped between 2010 and 2015.
“If you go back seven years, you are going back to a time where Hobart’s markets were at their lowest.”
He said the report shows the market has bounced back.