Housing green shoots point to market uptick

AN uptick in first homebuyers, investors and sale transactions point to a housing market that is “primed” for a strong finish to the year.

The latest data in the Real Estate Institute of Tasmania’s September Quarterly Report, released Wednesday, reveals that momentum is growing in important parts of the property market.

In the three months through September, 512 first-time homebuyers purchased a property, up from 479 in June and 460 in March. Compared annually, September 2024 FHB sales were up by 43 per cent.

This was the largest number of quarterly FHB purchases in a decade, with most (378) buying a house, alongside 78 unit sales and 56 land sales.

There have been 1451 sales of this type so far this year, putting the young buyer market on track to eclipse 2023’s total of 1560 FHB transactions.

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REIT president Russell Yaxley said it was pleasing to see so many young Tasmanians active in the property market.

“The government incentives, such as duty relief, have been positive. It also helps FHB to not have as many investors in the market, because they are often looking at the same property type,” he said.

“Stable interest rates help with confidence, which is growing steadily.

“We have seen increased positivity in our market. It is walking towards a good few quarters to come.”

Transactions rose in September, including the North West region posting its best result since March 2022 and the North recording a 30 per cent annual increase.

Sales in the South slowed slightly quarter-on-quarter, but were 10 per cent higher than last September.

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Investors purchased 331 properties at a median price of $478,000. This was 79 more sales than at the same time one year ago.

In 2023, Tasmania recorded just 1023 investor sales, but already this year there have been 970 sales.

Mr Yaxley said investors will return to Tasmania when the environment is right.

“Population growth is key to attracting investors to our market. And we do offer affordable suburbs — especially in the north — compared to prices interstate,” he said.

“A healthy level of investors has a positive effect on much-needed rental supply.”

The report showed Sandy Bay was the quarter’s most expensive suburb, followed by Tranmere and Acton Park, while Queenstown on the West Coast remained the most affordable.

Statewide, rental vacancies fell to 2.1 per cent, including declines in each of the regions.

There were 204 property sales exceeding $1m in the quarter, with 80 per cent of these transactions made by Tasmanians.

The state’s 2506 September sales have a total value of $1.5bn.

Mr Yaxley said the report showed solid signs of recovery from the lows of 2023.

“Buyers and sellers are feeling much more optimistic about where things are heading,” he said.

“I believe the December Report will show even stronger results based upon the activity that is currently occurring.”

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