The Real Estate Institute of Tasmania (REIT) has recently released the REIT Property Quarterly Report, March 2012. Following are some highlights from the report.
Median House Prices by Region
- Hobart (All): $353,300, a decrease for the quarter of 3.3% and annual change of -2.3%. Based on 449 sales. Days on market – 63, compared with 49 in March 2011.
- Hobart Inner: $460,650, a decrease for the quarter of 2.3% and annual change of -2.0%. Based on 130 sales. Days on market – 49, compared with 34 in March 2011.
- Hobart Middle: $320,000, no change for the quarter and annual change of -33.6%. Based on 209 sales. Days on market – 71, compared with 54 in March 2011.
- Hobart Outer: $337,500, a decrease for the quarter of -2.2% and annual change of 0.3%. Based on 110 sales. Days on market – 57, compared with 59 in March 2011.
- Launceston: $266,000, a decrease for the quarter of 5.0% and annual change of -5.0%. Based on 211 sales. Days on market – 65, compared with 61 in March 2011.
- North-West Centres: $254,000, an increase for the quarter of 12.9% and annual change of 3.0%. Based on 103 sales. Days on market – 119, compared with 69 in March 2011.
- Tasmania (All): $300,000, a decrease for the quarter of 1.6% and annual change of -3.2%. Based on 1252 sales. Days on market – 79, compared with 64 in March 2011.
In 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 noted as an error in calculation in the report. This appears to have finally been corrected and most notably by the average days on market for the north west jumping up to 119 days from 70 in the December report, which is where the error must have been found.
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)
- Battery Point, Hobart Inner ($925,000, 8 sales)
- Tranmere, Hobart Middle ($595,000, 5 sales)
- Sandy Bay, Hobart Inner ($580,000, 28 sales)
- Mount Nelson, Hobart Inner ($550,000, 5 sales)
- Bellerive, Hobart Middle ($518,000, 8 sales)
- Taroona, Hobart Inner ($498,500, 10 sales)
- West Hobart, Hobart Inner ($475,000, 18 sales)
- New Town, Hobart Inner ($454,500, 16 sales)
- Sanford, Hobart Outer ($448,000, 7 sales)
- Mount Stuart, Hobart Inner ($440,000, 7 sales)
In the December quarter the median prices of the Top Ten Most Expensive Suburbs ranged from $690,000 (East Launceston) down to $460,000 (Dynnyrne). In each quarter the total number of sales recorded by the Top Ten has been similar (112, this quarter, 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 only four suburbs from December quarter exiting the list – East Launceston (was number 1), Acton Park (Hobart Middle), Seven Mile Beach (Hobart Middle) and Dynnyrne (Hobart Inner).
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 for Battery Point. Battery Point has regained number one spot this quarter, which is where most people would agree it really belongs. However last 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. The mix of houses sold within those six or eight sales per quarter has a huge impact on the median price.
Top Ten Median Price Growth Suburbs/Towns over the quarter
- Battery Point, Hobart Inner (58.8%)
- Bellerive, Hobart Middle (45.9%)
- East Devonport, North West (35.9%)
- Riverside, Launceston (25.0%)
- Legana, Launceston (24.8%)
- Bridgewater, Hobart Outer (20.3%)
- Berriedale, Hobart Middle (16.6%)
- St Leonards, Launceston (15.5%)
- West Launceston, Launceston (15.3%)
- Moonah, Hobart Middle (14.9%)
All suburbs in this Top Ten have changed from last quarter, where the top suburb was East Launceston (93.0%) through to West Hobart (8.2%).
The report also includes data on the location of buyers – reporting 190 (15%) interstate buyers and 4 (<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 renting in Tasmania, the vacancy rates and median rents are reported. Vacancy rates are mostly low – 3.9% in Hobart (up from 3.1%), 2.3% in Launceston (up from 1.7%) and 5.1% in the North-West (up from 4.2%).
Source: REIT Property Quarterly Report, March 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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