The Real Estate Institute of Tasmania (REIT) has recently released the REIT Property Quarterly Report, June 2012.
Following are some highlights from the report.
Median House Prices by Region
- Hobart (All): $370,000, an increase for the quarter of 4.8% and annual change of 0.0%. Based on 337 sales. Days on market – 59, compared with 56 in June 2011.
- Hobart Inner: $435,000, a decrease for the quarter of 5.6% and annual change of -7.90%. Based on 133 sales. Days on market – 45, compared with 50 in June 2011.
- Hobart Middle: $335,000, an increase of 4.7% for the quarter and annual change of 4.9%. Based on 162 sales. Days on market – 69, compared with 60 in June 2011.
- Hobart Outer: $335,000, a decrease for the quarter of 0.7% and annual change of -3.2%. Based on 82 sales. Days on market – 63, compared with 58 in June 2011.
- Launceston: $262,750, a decrease for the quarter of 1.2% and annual change of -4.5%. Based on 220 sales. Days on market – 75, compared with 72 in June 2011.
- North-West Centres: $236,250, a decrease for the quarter of 7.0% and annual change of -3.0%. Based on 106 sales. Days on market – 72, compared with 69 in June 2011.
- Tasmania (All): $290,000, a decrease for the quarter of 3.3% ($10,000) and annual change of -4.9%. Based on 1170 sales. Days on market – 77, compared with 69 in June 2011.
In this and previous reports the median number of days on the market for Tasmania overall has been reported as higher than the reported median for any of the regions, which I note as an error in calculation in the report. This appeared to have finally been corrected in the March 2012 quarter, but once again seems a little out.
As noted when we have reported the results of previous quarters, the REIT report splits the suburbs of Hobart into three areas – inner, middle and outer. The report lists the suburbs in each area, but includes some unusual allocations. Middle Hobart includes, for example, Lauderdale (20km from CBD), Seven Mile Beach (20km), Tranmere (14km) and Old Beach (17.5km). Whereas Outer Hobart includes some suburbs closer than these, for example, Mornington (8km), Warrane (8km),Bonnet Hill (13km) and Kingston (12km). This needs to be taken into account when reading the results by area.
The two tables below show the top ten suburbs or towns in terms of median price and growth. As with many results for Tasmania, the low sales volumes in some suburbs present (or not present) in these lists can easily skew the data.
Top Ten Most Expensive Tasmanian Suburbs/Towns (for the December Quarter)
- Tolmans Hill, Inner Hobart ($590,000, 5 sales)
- Tranmere, Hobart Middle ($511,000, 6 sales)
- Sandy Bay, Hobart Inner ($510,000, 29 sales)
- Taroona, Hobart Inner ($483,750, 6 sales)
- Acton Park, Hobart Middle ($475,000, 5 sales)
- Mount Stuart, Hobart Inner ($431,500, 6 sales)
- North Hobart, Hobart Inner ($430,000, 10 sales)
- Lauderdale, Hobart Middle ($425,000, 5 sales)
- Launceston City, Launceston ($425,000, 5 sales)
- West Hobart, Hobart Inner ($412,000, 19 sales)
In the March quarter the median prices of the Top Ten Most Expensive Suburbs ranged from $925,000 (Battery Point) down to $440,000 (Mt Stuart). In each quarter the total number of sales recorded by the Top Ten has been a little over 100 (102 this quarter, 112 in March, 108 in December and 107 in September). The limited number of sales for some suburbs means that this list can vary significantly from quarter to quarter as is evidenced here with five suburbs from the March quarter exiting the list – Battery Point, Mount Nelson, Bellerive, New Town and Sanford.
The limited number of sales in some suburbs and the impact it has on the median prices is reflected well by the change in ranking each quarter for Battery Point. Battery Point does not appear in the top ten for the March quarter as the REIT require that there be at least 5 sales in a suburb for it to make the list. Battery point had 4 sales at a median price of $1,080,000. In the March quarter it held the number one spot, which is where most people would agree it really belongs. In the December 2011 quarter it dropped to position six with a median of only $582,500 from six sales. This small suburb consists of the tiniest heritage houses through to magnificent heritage and modern mansions that sell for several million dollars but rarely go on the market and tend to take a while to sell. The mix of houses sold within those few sales per quarter in this small suburb has a huge impact on the median price.
Top Ten Median Price Growth Suburbs/Towns over the year
- Westbury, Launceston (40.4%)
- Lauderdale, Hobart Middle (33.3%)
- Launceston City, Launceston (22.8%)
- Huonville, Hobart Outer (21.6%)
- Legana, Launceston (19.4%)
- Youngtown, Launceston (18.5%)
- Latrobe, North West (15.9%)
- North Hobart, Hobart Inner (15.4%)
- Old Beach, Hobart Middle (13.5%)
- Ravenswood, Launceston (10.4%)
All suburbs in this Top Ten, except Legana, have changed from last quarter, where the top suburb was Bicheno (86.6%) through to Chigwell (11.4%).
The report also includes data on the location of buyers – reporting 165 (14%) interstate buyers and 3 (<1%) overseas buyers.
This data is most likely extracted from the sales contracts for each property and has used the address of the buyer at the time of signing the contract. What this information cannot show is if the interstate buyers are relocating to Tasmania or purchasing investment properties. What it also can’t highlight are the purchases of anyone recently relocated, but with a Tasmanian address at the time of purchase.
For those interested in investing in or renting in Tasmania, the vacancy rates and median rents are reported. Vacancy rates have once again increased across the state and are reported as 4.8% in Hobart (up from 3.9%), 2.9% in Launceston (up from 2.3%) and 6.2% in the North-West (up from 5.1%).
Source: REIT Property Quarterly Report, June 2012.
A full copy of the report is available for purchase from the REIT website at Market Facts REIT : Real Estate Institute of Tasmania
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