Regional Media Release – December Quarter 2024 – North-West

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.  

Northwestern Tasmania has recorded strong outcomes over the December 2024 quarter with both increases in transaction numbers and median prices against the same period last year. Annually the figures showed a 15.0% increase in transactions and continued growth in house and unit median prices.

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.

Northwestern Tasmania Year on Year

• Northwestern Tasmania achieved 2208 sales worth $1.12 billion in 2024. This was 15.0% above 2023’s transaction total and 16.2% above 2023’s cumulative value amount.
• The region recorded 1586 house sales over the year with its median price increasing to $506,000. This saw an increase of 207 transactions and $16,000 in the median price over the year. Unit sales increased 13.8% over the year to 272 while the median price ($418,000) rose $28,000 above last year.
• Land sales increased from 230 in 2023 to 308 in 2024.  Lands median price fell $19,000 from $220,000 in 2023 to $201,000 in 2024.
• Sales over $1 million increased from 67 in 2023 to 81 in 2024. Local Tasmanians accounted for 82.75% of these transactions.
• The region saw an increase of 40.7% in first home buyer transactions (505) in 2024.
• Lower prices and rising mainland markets saw an increase in Investor activity recording 333 sales over the year. An increase of 27.6%. The median purchase price was $420,000. This region is attracting increased interest from Mainland investors with 33% of its activity being accredited to this source. The regions affordability and potential for growth will see such interest continue.
• Mainland buyers returned to the market securing 400 properties at a median price of $478,250. This was an increase of 67.4% on the previous year.
• Shifting demand for rental accommodation in Northwestern Tasmania saw rental vacancy rates move up from 2.0% at the beginning of the year to end at 2.0% in December 2024. Vacancy rate had risen to 2.2% 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 $20 per week from $400 per week in 2023 to $420 per week in 2024.  The Northwestern region provides a rental yield at 4.6%. There is still a shortage of rentals at lower affordable levels.

The December 2024 quarter results

After a very strong September Quarter Northwestern Tasmania’s December transaction numbers were well ahead of the results achieved for the same time last year but below those for the previous (September) quarter.  Median prices have continued to rise achieving their highest levels over the twelve-month period. First home buyers, investors and mainland buyers all continued to be active in this market.

The following is a summary of the December quarter results:

• Northwestern Tasmania achieved 505 property transactions over the December quarter with an accumulated value of $261 million. This was 86 fewer (-17.0%) than recorded in the September quarter, but 16 more than the same time last year.
• There were 375 house sales at a median price of $510,000.  This was 29 sales down on the September quarter results and 10 sales more than the same time in 2023. The median price rose $20,000 over the quarter and was $15,000 above the same time last year.
• Unit sales numbers (62) were down by 17 sales over the quarter but increased two sales on last year. The median price $426,000 was $1,000 above September’s results and an increase of $55,500 over the same time last year. Land sales (58) were well below Septembers 100 transactions but attained 10 more sales than at the same time last year.). The median land sale price ($200,500) was above September’s result ($200,000) and December last year ($187,500).
• 15 sales exceeded $1 million in the December quarter. This was two fewer than at the same time last year and three less than the September quarter. 93.4% was acquired by locals.
• 134 first home buyers acquired property in the quarter. This was 35 up on last year, and 13 less than September. 107 acquired houses, 15 units and 12 land.
• Investor numbers decreased to 70 sales over the quarter. This was 26 less than September and 16 less than the same time last year. Median purchase price was $468,500.
• Mainland purchaser numbers retreated from 108 in September to 86 in December. This was an increase on the 68 achieved for the same period last year. Median purchase price was $463,500
• Port Sorell was Northwestern Tasmania’s most expensive suburb with a median price of $797,500 followed by Shearwater $750,000, Spreyton $710,000 and Turners Beach $670,000. The region’s most affordable areas were Smithton $365,000, East Devonport $367,500, Acton $372,500 and Railton $393,000.
• Our highest transaction suburbs were Burnie with 75 sales, Devonport with 60, Ulverstone with 22 and Wynyard with 21. Of the municipalities, Devonport recorded 120 sales, Burnie 104, Central Coast 94 and Waratah/Wynyard 67.
• Demand for rental accommodation in Northwestern Tasmania eased over the quarter. As a result, the vacancy rate has increased from 1.9% in September to 2.0%. Median rent remained stable over the quarter at $400 per week but had increased by $20 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. 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.