AREAS TIPPED TO RISE
Sales activity is flying in 39 Tassie neighbourhoods and that’s a strong indicator of future price growth, writes Jarrad Bevan.
THE Tasmanian property market has set a new benchmark for the number of locations with rising sales activity.
Despite a dire shortage of homes for sale compared to annual or multi-year averages, Hotspotting’s latest Price Predictor Index has revealed 39 locations with a rising sales pattern over the past quarter.
In six years of research, that has never happened before.
Hotspotting managing director Terry Ryder said Hobart and Tasmania’s booming market appear to peak in mid2017 and by autumn 2020 his report only recorded two locations with rising sales activity.
“Since then there has been a resurgence as the Tasmanian boom has simply refused to die,” he said.
Hotspotting figures from the past six Price Predictor surveys show the number of growth locations increasing from two to 13, then 20, 22, 26 and now 39.
Mr Ryder described the Hobart market as strong and regional Tassie areas as having “rising momentum”.
And not all of the action is in the city. Mr Ryder found previously depressed West Coast towns were now rising.
Coming from a low base, towns like Zeehan, Rosebery and Queenstown are rising yet still record prices at low levels, he said.
On the home values front, Mr Ryder said there had been strong price growth on the Apple Isle for the past four years with “little indication of slowing down”.
“The number of suburbs and towns with annual price growth above 20 per cent is exceptional,” Mr Ryder said.
Across Hobart, the median price in Austins Ferry has risen 29 per cent, Dodges Ferry 28 per cent, and Lauderdale and Primrose Sands 23 per cent apiece.
Real Estate Institute of Tasmania president Mandy Welling said she was impressed to see the level of growth outlined in the report.
Mrs Welling said the true growth stars of the report were Queenstown (with the median up 49 per cent), Penguin (up by 33 per cent), Ulverstone (up 20 per cent) and Wynyard (up 24 per cent).
“Many of these wonderful suburbs have relatively low median sale prices and the affordability here would certainly be assisting with the growth,” she said.
“With more affordability comes a more accessible marketplace.
“These areas represent an opportunity for investing or first-time buyers tapping into the market.”
Mrs Welling said it was incredible to look back over the past four years and assess the continual growth and vitality in our marketplace.
“It comes as no surprise to see multiple Hobart suburbs have experienced a rising market as the city will always have a strong appeal to a large demographic,” she said.
“A standout in the south is the Kingborough region with Blackmans Bay, Kingston, Margate and Taroona are all experiencing rising markets.
“New Norfolk in the Derwent Valley boasting a spectacular 23 per cent increase with a median sale price of $355,000? That was great to see.”
The Hotspotting index tracks housing sales volume rather than the industry’s common measurement of median price changes and asserts that sales are a superior indicator of future growth.
The Spring 2021 Price Predictor Index is available via hotspotting.com.au