Regional Media Release – December Quarter 2024 – State

The Real Estate Institutes of Tasmania’s December quarterly report which was released today shows that Tasmanian’s 2024 residential real estate market has risen from the doldrums of 2023 to record stronger than expected transaction results and its second highest ever cumulative value of sales. 2024 saw a growth of confidence by participants in the market; particularly first home buyers, investors and mainland buyers seeking to “get in” before things rebound. 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 prospered, increasing by 976 sales or11.1% over the year. Prices have remained relatively stable over the 12 months but increasing buyer demand will place an upward pressure on future prices.

Whilst the December 2024 quarter results were slightly down on the previous September quarter, its results were well above those for the same time the previous year.

Set out below is a summary of year-on-year results:

• 2024 recorded 9771 real estate transactions worth $5.96 billion. The cumulative value of these transactions was 10.7% higher than 2023 and the second highest ever achieved.
• 6875 house sales were recorded across Tasmania, at a median price of $600,000. Whilst the median price was just $5,000 lower than 2023, transaction numbers were up 667 over the year
• Unit sales and prices remained relatively stable over the year with sales numbers varying by 92 transactions (2023 – 1378 sales compared to 1470 in 2024) and a $3525 decrease in median price (from $488,525 in 2023 to $485,000 in 2024). 
• Land sales followed a similar trend with 1235 transactions recorded over 2024 which was 135 more than the previous year. The median price of land fell in 2024 from $262,500 to $251,000.
• House sale numbers were up 7.7% across Greater Hobart with its median price increasing by $4,000 to $730,000. Launceston (1006 sales) recorded an increase of 113 transactions and saw its house median price increase $10,500 to $560,500. Northwest house sales increased 68 sales with median price growing $15,000 to $485,000.
• The number of property sales recorded above $1 million grew from 797 to 848 over the twelve-month period. This is the second highest result ever recorded. Our highest was 943 sales in 2022. Contrary to popular belief international and mainland buyers accounted for just 19.2% of these sales.
• 1954 first home buyers purchased a property during 2024. This was an increase of 25.3% over the year. This was the highest first home buyer participation rate since 2009.
• Investor participation increased by 265 or 25.9% to 1288 acquisitions. This increase can be attributed to rising mainland prices which sees them less affordable and competitive than our local market. Investor transaction numbers are still well below the levels achieved 5 to 10 years ago.
• Mainland buyer participation surged 47.9% to 1571 purchases at a median price of $540,000. 458 of these were investors while the balance (1113) were moving here to live.
• 37 foreign buyers acquired property in the state at a median price of $710,000. This was 1 less than the previous year.

Highlights of the December 2024 quarter:

Data from the report shows that the December 2024 quarterly transaction results were marginally below those achieved in the September quarter but above those recorded at the same time the previous year while December 2024 median prices were above both.

• 2344 transactions worth $1.46 billion. This was $110 million above December 2023 which recorded 2183 transactions and September 2024 which recorded 2506.
• House sales 1652 were up 5.7% on last year and down 6.1% on the previous quarter. The median house price ($610,000) was up $20,000 on September and down $5,000 on last year.
• Unit sales (352) were 46 sales below September and 39 above the same time last year.  Median prices ($491,000) were well above last year ($458,500) and $2,500 above last quarter ($488,500).
• 288 land sales were recorded at a median price of $265,000. Sales numbers were 16 less than September and 12 more than last year. The median was $25,000 more than last quarter and $10,000 more than last year.
• Greater Hobart recorded 510 house sales at a median price of $745,000. This was 12 more sales than September quarter and 54 more than last year.  The median price had increased by $30,000 over the quarter and $5,000 over last year.
• Launceston (225) achieved 54 fewer house sales than last quarter (279) but 2 more than the same period last year (223). Its median price ($567,500) was up $12,500 on both the previous quarter and the same time last year.
• The Northwest Coast followed suit with 211 sales. 7 fewer than September and 1 more than the same time last year.  Its median ($485,000) was   above both September ($473,750) and December last year ($470,000).
• December quarter 2024 recorded 216 sales more than $1 million. This was 12 more than previous quarter and 21 more than same time last year.
• The quarter recorded 505 first home buyer purchases, which was just below September results (512), but well above December 2023 (427).
• Investors acquired 318 properties over the quarter at a median price of $475,750. This was 13 fewer than the previous September quarter and 23 more than the same time last year.
• Mainland buyer activity (370 sales) was 25.4% or 75 sales up on last year and 36 transactions below last quarter. Their median purchase price was $543,300 with 38 acquiring properties in excess of $1 million.
• In the December quarter, Battery Point was Tasmania’s most expensive suburb with a median price of $2,510,000, followed by Acton Park $1,200,000, Sandy Bay $1,072,500 and Tranmere $1,040,000. Our most affordable was Queenstown at $148,750, Smithton $365,000, East Devonport $367,500 and Acton $372,500.
• Burnie (75) maintained its record as the suburb/town with the highest number of sales. It was followed by Devonport (60), Kingston (42) and Howrah (37). Of the municipalities, Clarence (272) recorded the highest number of transactions followed by Launceston (247), Hobart (195) and Glenorchy (172).
• In December 2023 it took 38 days to sell a home Hobart. In December 2024 this has reduced to 30 days. Over the same period in Launceston, it took 37 days in 2023 but has pushed back to 29 in 2024. On the Northwest Coast it was 41 days in 2023 reducing to 37 in 2024
• Hobart’s median 3 bed house rent was $550, Launceston $480, and the Northwest Centres $420. Whilst vacancy rates have eased across every region a noticeable increase in demand has been experienced in recent months. Supply at the lower affordable ranges remains a problem.

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 buyers 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.

Rental conditions eased over 2024 but 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.