Regional Media Release – September Quarter 2024 – West Coast

Real Estate activity in our West Coast region dropped away over the September 2024 quarter. This may have been seasonal as it covered our winter months.

The West Coast real estate market is very different to our other regions. Driven for years by mining activity today it transitions to tourism. It is a vast rugged region with limited development and population growth. Rental demand in the region is not as strong as other parts of the state. The same can be said for residential sales. There is a surplus of accommodation in the region making it the most affordable in the State. A 3-bedroom house can be rented here for $300 per week.

The West Coast accounts for 1.2% of the States residential real estate activities and 0.32% of its value.

The following is a summary of the West Coast results over the September 2024 Quarter:

• The West Coast achieved 30 property transactions over the September quarter with an accumulated value of $4.9 million. This was a decrease of 10 sales over the quarter and 3 less than the same period last year.
• There were 24 house sales at a median price of $182,500. There were 6 fewer transactions than June quarter and 5 more than the same time last year. The house median price was $2,500 more than last year’s result and $22,500 below the previous quarter.
• There were no unit sales for the September quarter. There were also no sales at the same time last year.
• There were 6 Land sales during the quarter. This was 2 less than the previous quarter and 7 less than the same time last year. The median selling price was $85,000 which was $43,750 more than last quarter and $35,000 more than the same time last year.
• 3 first home buyers acquired property in the quarter. This was in line with the recent quarterly results with two purchasers buying a house and the other one acquiring land.
• There was only one investor acquisition in the region over the quarter. This was well down on recent trends where the region had attained more than 5 investor sales in each quarter over the past 3 years. The purchase price was $30,000.
• Mainland purchasers acquired 4 properties over the quarter at a median price of $131,375. This was 3 sales less than both the previous quarter and the same time last year.
• Strahan was the West Coast’s most expensive Town with a median price of $380,000 followed by Zeehan ($215,000), and Rosebery and Queenstown at $175,000. As the results show this region is by far the most affordable in the State.
• Our highest selling towns were Queenstown with 13 sales, Zeehan with 6 and Rosebery with 3.
• Rents have marginally increased over the year rising from $270 pw in September 2023 to $300 per week in September 2024. Based on current rents and property prices properties are offering a strong investment return of 8.9%.

Tasmanians have had a tough time endeavouring to recover from the impact of rising interest rates, higher costs of living and struggling economic conditions. While there is an air of confidence in both the North and North-West markets, the West and East Coast regions have suffered. One could argue that the wintery September quarter is normally each of these regions slowest quarter. It is possible that the growing ring of confidence which is currently impacting the other regions will ultimately flow through to these areas. The West Coast Region has been resilient for many years and has always found a way to survive. This is one of the regions strengths and qualities.

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.