Regional Media Release – December Quarter 2024 – North

Despite rising cost of living issues, a purported demise in economic conditions, slowed population growth and no easing in interest rates, local real estate activity levels emerged from the doldrums of 2023 to record strong outcomes across most of its measured sectors.

Buyer and rental demand have re-emerged to ignite confidence within local markets where First Home Buyers, Investors and Mainland buyers have scrambled to “get in” before things rebound.  Prices have remained relatively stable over the 12 months but increasing buyer demand has started to place an upward pressure on prices and rents.  

Northern Tasmania has recorded strong outcomes over the December 2024 quarter with both increases in transaction numbers and median prices for the quarter and against the same period last year. Annually the figures showed a 12.5% increase in transactions and minimal variations in median prices; both precursors to a rising market.

The Real Estate Institute of Tasmania’s December 2024 quarterly report which was released today details positive outcomes for both the December quarter and the Annual 2024 results. A summary of the report is provided below.

Northern Tasmania Year on Year

• Northern Tasmania achieved 2490 sales worth $1.42 billion in 2024. This was 12.5% above 2023’s transaction total and 14.1% above 2023’s cumulative value amount.
• The region recorded 143 more house sales over the year (1765) but saw its median price hover at $555,000 just $5000 above the $550,000 recorded for 2023.
• Unit sales increased 18.6% over the year to 396 while the median price ($455,000) rose $10,000 above last year.
• Land sales increased from 233 in 2023 to 287 in 2024.  Lands median price fell $25,000 from $270,000 in 2023 to $245,000 in 2024.
• Sales over $1 million increased from 121 in 2023 to 157 in 2024. Local Tasmanians accounted for 76.5% of these transactions.
• The region saw an increase of 27.5% in First home buyer transactions (477) in 2024.
• Lower prices and rising mainland markets saw an increase in Investor activity recording 382 sales over the year. An increase of 36.9%. Whilst this is Tasmania’s most active investor market, the results achieved are still well short of the 550 to 700 sales recorded in 2017 to 2021 period. The median purchase price was $455,000.
• Mainland buyers returned to the market securing 456 properties at a median price of $512,500. This was an increase of 62.9% on the previous year.
• Shifting demand for rental accommodation in Northern Tasmania saw rental vacancy rates move up from 1.8% at the beginning of the year to end at 2.1% in December 2024. Vacancy rate had risen to 2.3% in June but growing demand for rental accommodation within the region had seen it decline in the second half of the year. Median Rents increase $10 per week from $470 per week in 2023 to $480 per week in 2024.  The Northern region provided one of Tasmania’s strongest investment rental yields at 4.7%. There is still a shortage of rentals at lower affordable levels.

The December 2024 quarter results

After a very strong September quarter, Northern Tasmania’s December results were well ahead of the results achieved for the same time last year but below those for the previous (September) quarter. First home buyers, investors and mainland buyer numbers all continued to be active in this market.

The following is a summary of the December quarter results:

• Northern Tasmania achieved 580 property transactions over the December quarter with an accumulated value of $318 million. This was 97 fewer (-16.7%) than recorded in the September quarter, but 44 more (+8.2%) than the same time last year.
• There were 392 house sales at a median price of $554,000.  This was 86 sales or 18.0% down on Sept quarter results and 10 sales less same time in 2023. The median price rose $4,000 over the quarter and was $8000 below the same time last year.
• Unit sales numbers (100) were down by 13 sales over the quarter but saw an increase of 26 sales on last year. The median price $456,000 was $24,000 below September’s results but increased $13,500 over the same time last year. Land sales (80) were up on both the previous quarter (73) and last year (53). The median land sale price ($242,500) was much stronger than September’s result ($220,000) and December last year ($230,000).
• 36 sales exceeded $1 million in the December quarter. This was one fewer than at the same time last year and one more than the September quarter. 78.8% was acquired by locals.
• 123 First home buyers acquired property in the quarter. This was 3 up on last year, and 7 more than September. 86 acquired houses, 22 units and 15 land.
• Investor numbers plateaued at 101 sales over the quarter. This was 1 less than September and 37 more than the same time last year. Median purchase price was $435,000.
• Mainland purchaser numbers retreated from 118 in September to 106 in December. This was well up on the 75 achieved for the same period last year. Median purchase price was $500,000
• Blackstone Heights was Northern Tasmania’s most expensive suburb with a median price of $850,000 followed by Launceston $845,000, East Launceston $780,000 and Newstead $720,000. The region’s most affordable areas were George Town $385,000, Ravenswood $402,500, Mowbray $402,500 and Scottsdale $450,000.
• Our highest selling suburbs were Riverside with 24 sales, Newnham 20, Trevallyn 19 and Longford and Georgetown on 18. Of the municipalities, Launceston had 247 sales, West Tamar 112, Meander Valley 105 and Northern Midlands 68.
• Demand for rental accommodation in Northern Tasmania increased over the quarter. As a result, the vacancy rate has decreased from 2.2% in September to 2.1%. Median rent remained stable over the quarter at $480 per week but had increased by $10 per week compared to the same period last year

Commenting on the market results for 2024, REIT President Russell Yaxley said that the local real estate market has clearly experienced a turnaround in 2024. Activity levels have increased, and we are now seeing an upward pressure on prices.

It has been pleasing to see first home buyer’s and investors take advantage of the market. Further the return of mainland buyer activity and the growing number of $1 million plus sales confirms a growing confidence with the level our market is at.

A growing demand for rental accommodation in Northern Tasmania has placed increased pressure on this sector.  Rents have risen. There remains a shortage of affordable stock at the lower end of the market. Whilst investor activity has risen it is still well below levels that we need to ease the strain on this sector

I feel confident that things are looking up for 2025 and the prospect of interest rate decreases will only generate more confidence for both buyers and sellers.