Record sales, but buyers hurting $ 3.87B HOME BOOM PAIN

TASMANIA’S surging real estate market has smashed all records, with $3.879 billion worth of homes sold in 2017 — a jump of $759 million on 2016.

More than 11,350 homes were sold — a record 168 were $1 million-plus — and interstate buyers bought roughly one in every five homes.

Real Estate Institute of Tasmania president Tony Collidge, pictured, said the results would normally be cause for celebration but the successes of 2017 were “undermined”, particularly in southern Tasmania, by the gaping shortage of property to meet rental and buyer demand.

TASMANIA’S housing market smashed records left and right in 2017.

Figures released by the Real Estate Institute of Tasmania yesterday show the total value of homes sold last year was $3.879 billion.

That is about $759 million more than 2016’s $3.119 billion of home sales, which was the highest on record at that time.

Despite the shrinking number of homes listed for sale over the past two years, Tasmania recorded its highest number of transactions in a decade at 11,353.

The previous record for $1m-plus sales in a calendar year was 109 in 2015, last year Tasmania recorded an eye-watering 168 such sales.

The majority of these topend-of-town sales were made by Tasmanians (130), with interstate buyers making 38 $1 million-plus purchases.

Interstate buyers bought one in five homes sold in Tasmania last year (21.3 per cent).

First home buyers increased by almost 10 per cent or 120 sales to 1345. Primarily they bought houses, there were 158 units and 276 land blocks sold.

REIT president Tony Collidge said ordinarily the booming residential housing market would be cause for celebration.

However, he said the successes of last year were “undermined”, particularly in southern Tasmania, by a shortage of property to meet rental and buyer demand.

Mr Collidge said booming tourism, growing university student numbers, increased job opportunities, housing affordability and the emergence of Tasmania as a lifestyle destination had taken its toll.

“We now have unprecedented demand on a somewhat limited housing supply,” he said. “This situation presents us with an opportunity to address where we are at and find solutions that will benefit us all for the future.”

Mr Collidge said Hobart had experienced a surge in property value and rental demand over the past two years.

“No one foresaw how our economic condition would change so rapidly,” he said.

“Unfortunately, there is no quick solution, it is something we will have to work through.

“The problem isn’t the fault of Airbnb owners [about 300], foreign buyers [61 last year], or the interstate buyers who purchased 1062 investment properties in 2017. “It’s much bigger than that. “We estimate that Tasmania needs almost 5000 homes to satisfy its current affordable housing, rental and private dwelling demand.

“The current situation needs to be addressed and a real opportunity exists for the Government of the day to rethink how it can best support the housing sector.”