Hobart, TAS, September 2024 – Tasmania’s property market is making headlines once again as it experiences a significant surge in activity and price growth this spring. Driven by a combination of low interest rates, strong interstate migration, and continued demand for lifestyle properties, the island state is emerging as one of Australia’s hottest property markets.
Record-High Prices in Hobart and Surrounding Areas
Hobart, the state’s capital, continues to be the epicenter of Tasmania’s property boom. The median house price in Hobart reached an all-time high of $940,000 in September, reflecting a year-on-year increase of 11%. The city’s limited housing stock, combined with growing demand, has led to intense competition among buyers, often resulting in properties selling well above their asking prices.
Suburban areas surrounding Hobart, such as Sandy Bay, Battery Point, and Kingston, have also seen significant price hikes. Sandy Bay, known for its picturesque views and proximity to the city center, recorded a median house price of $1.4 million, a 9% increase compared to September 2023.
Strong Demand for Regional Properties
Beyond Hobart, Tasmania’s regional areas are also experiencing strong demand, particularly from interstate buyers seeking a lifestyle change. Coastal towns like Bicheno and St Helens have become popular choices, with many buyers drawn to the scenic beauty and relaxed pace of life.
The median house price in Bicheno has climbed to $620,000, marking a 13% increase over the past year. St Helens, a gateway to the Bay of Fires, saw a similar rise, with the median price now at $570,000. Local real estate agents report that many properties in these areas are receiving multiple offers, often within days of being listed.
Rental Market Tightens Further
The rental market in Tasmania has also tightened considerably, with vacancy rates remaining at historically low levels. Hobart’s vacancy rate for rental properties dropped to just 0.6% in September, down from 0.8% in August, making it increasingly difficult for tenants to secure accommodation.
The strong demand for rental properties has led to a sharp increase in rental prices. The median weekly rent for a house in Hobart now stands at $600, a 7% rise from the same period last year. Meanwhile, regional towns like Launceston and Devonport have seen rents rise by around 5%, reflecting the broader trend of limited supply and high demand.
Tips for Sellers: How to Maximise Your Property’s Sale Price
With the Tasmanian property market in such high demand, sellers have a unique opportunity to achieve exceptional returns. Here are some quick tips to ensure you maximize the sale price of your property:
- Presentation is Key: First impressions matter, so make sure your property is well-presented. Consider professional staging to highlight your home’s best features and create a welcoming atmosphere for potential buyers.
- Enhance Curb Appeal: The exterior of your home is the first thing buyers see. Invest in landscaping, fresh paint, and minor repairs to make your property stand out from the competition.
- Professional Photography: High-quality photos can significantly impact the level of interest in your property. Hire a professional real estate photographer to capture your home in the best light and attract more buyers online.
- Set the Right Price: Work with a knowledgeable real estate agent to set a competitive and realistic asking price. Overpricing can deter buyers, while underpricing may result in leaving money on the table. A well-researched price will attract serious offers and create competition.
- Consider Timing: Selling in spring is ideal, as it’s when buyer activity tends to peak. However, if the market is particularly hot, you might also benefit from listing in other high-demand periods.
- Leverage Online Marketing: Ensure your property is listed on all major real estate platforms and make use of social media advertising to reach a broader audience. Virtual tours and video walkthroughs can also be effective tools for engaging potential buyers.
- Highlight Unique Features: Tasmania is known for its stunning landscapes and lifestyle appeal. If your property has unique features such as water views, proximity to nature, or historical significance, make sure these are prominently featured in your marketing materials.
- Be Open to Negotiation: Flexibility can be a powerful tool in a hot market. Be open to negotiating on terms such as settlement dates or including certain furnishings to close the deal quickly at a favorable price.
Outlook for the Rest of 2024
Looking ahead, the Tasmanian property market is expected to remain robust throughout the remainder of 2024. Analysts predict that the combination of low interest rates and ongoing demand from interstate buyers will continue to fuel price growth, particularly in Hobart and desirable regional areas.
However, some caution that rising construction costs and potential interest rate increases in 2025 could moderate the pace of growth in the coming years. Nevertheless, Tasmania’s unique appeal as a lifestyle destination is likely to keep it at the forefront of Australia’s property market for the foreseeable future.
As spring progresses, sellers in Tasmania are in an enviable position, with many poised to achieve excellent returns on their properties. For buyers, the competition remains fierce, and those looking to enter the market may need to act quickly to secure their desired property.
Let us help!
If you’re considering buying or selling a property and seeking to understand the current market conditions, why not chat with one of our friendly agents to understand how we can help?
Or feel free to click here to get your instant property estimate.