Regional Media Release – September Quarter 2024 – North-West

Whilst Tasmanian real estate conditions continued a “steady as she goes” course over the September quarter, the market appears to be priming itself for a strong final quarter. Activity levels across the State remain well above those of last year and consistent across the regions.

The North and North-West markets have rallied strongly over the past 12 months and have continued to maintain activity levels well above those of last year. The North-West was the best performing region across the state over the September quarter. It was the only region to produce more sales than the previous June quarter and exceeded last year’s results by 93 sales or 18.7%.

The North-West has always provided some of the States most affordable housing and for many years endured economic turmoil and hardship. Today the region is moving forward at a spectacular pace and enjoys a level of confidence envied my much of the other regions. The North-West real estate markets have proven resilient over the past three years recording its highest median house and unit sale prices over the past twelve months.

Whilst September’s results don’t show any significant changes to the market it needs to be remembered that the June Quarter results reflected a significant upswing in activity and confidence. September Quarter results were just two (2) sales above the June quarter. A highlight of the quarter was a 31.3% jump in First home Buyer participation and a 14.35% jump in residential investment acquisitions.

The Following is a summary of the September 2024 quarter results:

• North-West Tasmania achieved 591 property transactions over the September quarter with an accumulated value of $289 million. This is an increase of 93 sales (or 18.7%) over September 2023 and managed just 2 sales more than the previous quarter. Its sales represent 23.6% of the total sales made across the state.
• There were 404 house sales at a median price of $490,000. This was 55 more transactions than the same period last year and 26 sales less than the previous quarter. The median price decreased ($41,000) from the previous quarter and was also $11,000 less than the same time last year.
• Unit sales over the September quarter not only increased their activity levels they established a new record median price of $425,000 for unit accommodation in the region. Unit transactions (79) increased 13 sales over last year (66) and was ten (10) sales more than in June Quarter. Median Price ($425,000) was $20,500 higher than last year and $25,000 more than last quarter.
• The North-West achieved their highest number of sales in two and a half years recording 100 land sales for the quarter. Land sales numbers were up 33 on the same time last year and 22 on the last quarter. The median land sale price was $200,000 which was down $17,500 on the previous quarter and $20,000 on the same time last year.
• 18 sales exceeded $1 million in the September quarter. This was 6 less than the previous quarter and 3 more than the same time last year. 72.2% were acquired by locals.
• 147 First home buyers acquired property in the quarter. This was 35more than the previous Quarter and 48 more than the same time last year. 112 acquired houses, 8 units and 27 land.
• The North-West recorded its highest level of investor acquisitions in the past two and a half years. Investors acquired 96 properties in the September quarter at a median price of $430,000. This was up by 47 sales or 95.9% on the same time last year. 37.5% of investment purchases in the North-West region were made by mainland buyers.
• Mainland purchaser numbers were relatively stable from quarter-to-quarter recording 108 purchases compared to 110 in June. Their participation rate was significantly higher year on year with an increase of 50 sales or 86.2%.
• Thirty-six (36) of these mainland buyers were investors while the remaining 72 were acquiring property to move into. Whilst 5 mainland purchasers bought property in the region for prices above $1 million, the median purchase price for this group of buyers was $485,000
• Forth was North-West Tasmania’s most expensive suburb/town with a median price of $820,000, Shearwater was next with $717,500, followed by Port Sorell $712,500, and Penguin $655,000. Our most affordable North- West suburb/town was Shorewell Park at $346,000, Acton ($360,000), Smithton ($370,000) and East Devonport with $385,000
• Our highest transaction suburbs were Burnie recording 88 sales followed by Devonport with 61, Somerset 20, and Latrobe and Wynyard both with 19. Of the municipalities, Burnie recorded 129 sales just ahead of Devonport with 126, Central Coast (97), Latrobe (89) and Waratah/Wynyard on 81
• The rental market in North-West Tasmania is currently operating with a vacancy rate of 1.9%. This is down from 2.2% the previous quarter. Median rents increased $20 per week over the quarter and $30 per week over the year. Based on current rents and property prices investment yields of 4.6% are being achieved.

REIT President Russell Yaxley said that ‘The September Quarter activity appeared to be in a “steady as she goes” holding pattern which is showing solid signs of recovery from the lows of 2023. There appears to be renewed confidence and energy across the market. Confidence has improved with both buyers and sellers feeling much more optimistic about where things are heading. I believe the December Report will show even stronger results based upon the activity that is currently occurring.’

For interviews relating to North-West Tasmania results, please contact REIT North-West Branch President, Alan Halliwell on 0408 250 111.