Regional Media Release – December Quarter 2024 – South

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.  

Southern 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 an 8.8% 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.

Southern Tasmania Year on Year

• Southern Tasmania achieved 4603 sales worth $3.19 billion in 2024. This was 8.8% above 2023’s transaction total and 7.3% above 2023’s cumulative value amount.
• The region recorded 245 more house sales over the year (3192) but saw its median price hover at $695,000 just $4,000 below the $699,000 recorded for 2023.
• Unit sales increased 10.6% over the year to 864 while the median price ($530,000) fell $5,000 below last year.
• Land sales increased from 482 in 2023 to 519 in 2024.  Lands median price remained stable at $280,000.
• Sales over $1 million decreased from 584 in 2023 to 573 in 2024. Local Tasmanians accounted for 82.5% of these transactions.
• The region saw an increase of 17.5% in First home buyer transactions (928) in 2024.
• Lower prices and rising mainland markets saw an increase in Investor activity recording 501 sales over the year. An increase of 20.6%. This result is still well short of the 612 sales achieved in 2022 and the 878 sales in 2021. Median purchase price was $525,000.
• Mainland buyers returned to the market securing 474 properties at a median price of $675,000. This was an increase of 32.7% on the previous year.
• Increasing demand for rental accommodation in Southern Tasmania saw rental vacancy rates move from 2.0 % to 1.9% and rents increase from $530 pw in 2023 to $550 per week in 2024. There is still a shortage of rentals at lower affordable levels.

The December 2024 quarter results

The December quarter results saw an improvement in activity levels and higher Median prices being achieved over both the previous September quarter and the December quarter in 2023. There was a resurgence in house sales and top end sales. First home buyers, investors and mainland buyer numbers showed strong gains.

The following is a summary of the December quarter results:

• Southern Tasmania achieved 1153 property transactions over the December quarter with an accumulated value of $833 million. This is an increase of 28 sales over the September quarter and was 120 sales more than the same time last year.
• There were 815 house sales at a median price of $707,000.  This was 15 more transactions than September quarter and 94 more than the same time in 2023. The median price rose ($26,000) over the quarter and $7000 over the same time last year.
• Unit sales numbers (207) were down by 10 sales over the quarter but saw an increase in median price to $526,000. The results were stronger for both transaction numbers (+36) and median price (+$16,000) over the December 2023 results. Land sales numbers (135) were up on September and December 2023 results while median prices ($270,000) were down by $30,000 on the previous year and $7,500 on the Sept quarter.
• 159 sales exceeded $1 million in the December quarter. This was 27 more than at the same time last year and 11 more than the September quarter. 81.8% was acquired by locals.
• 236 first home buyers acquired property in the quarter. This was 19 up on last year, and 11 more than September. 161 acquired houses, 54 units and 21 land.
• Investor numbers increased to 132 sales over the quarter. This was up 13 on both Sept and the same time last year. Median purchase price was $527,500.
• Mainland purchasers grew from 156 in Sept to 167 in Dec. This was well up on the 135 achieved for the same period last year. Median purchase price was $670,000
• Battery Point was Tasmania’s most expensive suburb with a median price of $2,510,000, followed by Acton Park $1,200,000, and Sandy Bay $1,072,500. Our most affordable Southern suburbs were Bridgewater $426,500, Primrose Sands $475,000 and Risdon Vale $495,000.
• Our highest selling suburbs were Kingston with 42 sales, Howrah 37, Sandy Bay 26, and Lindisfarne with 24. Of the municipalities, Clarence had 272 sales, Hobart 195, Glenorchy 172 and Kingborough 140.
• Demand for rental accommodation in Southern Tasmania increased over the quarter. As a result, the vacancy rate has decreased from 2.2% in September to 1.9%. Median rent increased $5 per week to $550 per week over the quarter and have increased $20 per week over the 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 Southern 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.