Northern market tops regional property list
LAUNCESTON is Australia’s hottest regional property market.
The housing market in Tassie’s northern capital and the North East region has topped the charts for the third quarter in a row.
CoreLogic’s latest Regional Market Update report revealed 10.5 per cent annual growth in Launceston’s house market – the highest of the 25 areas to make the list.
The SA4 region’s unit values grew modestly by 1 per cent. However, the unit market put a spotlight on the demand for this type of property with the time on market figure reducing sharply over the past year from 36 days to 26 days — a nation- leading pace.
The lack of stock in the market was reflected in transaction numbers decreasing by - 9.3 per cent ( houses) and - 24 per cent ( units). The number of sales in the past year was also - 12.5 per cent lower than the five year average.
Harrison Humphreys property consultant Jo Oliver described the Launceston market as the most buoyant she has seen in a dozen years. She said buyer inquiry continues to be very high in every price range.
“While there is interstate buyer interest in Launceston, we have found it’s the local buyers that are driving the market,” Ms Oliver said.
“The multiple offer scenarios have become more and more common, and this strong competition is in turn driving sale prices up. Even at the prestige end of the market — where marketing includes targeting interstate buyers — it has been the locals purchasing these properties.
“A recent comment from a buyer who had moved from interstate for work was surprised to ‘ have to pay Melbourne house prices in Launceston’.
CoreLogic’s Head of Australian Research, Eliza Owen, said ABS data shows migration to the regions rose to a record high in the June quarter.
She said this was because movements to regional Australia increased while departures from the regions slowed.
“As a result, demand for dwellings in regional Australia will have risen at a time when the stock available for sale is relatively low,” Ms Owen said.
“Regional Australia’s dwelling markets had higher rates of growth relative to capital cities through the pandemic, 4.8 per cent compared to 3.9 per cent in the year to October.”
The report analyses 25 of Australia’s largest non- capital city regions, looking at house and unit markets over the past 12 months. Of the 50 markets just six recorded declines over the year.