The general sentiment across the Tasmanian property market in 2024 has been one of steady growth, with the September quarter showing solid results across the state. Southern Tasmanian achieved a total 1,125 transactions.
A Market Facing Challenges
A combination of interest rate increases, a slowing economy, and falling population growth has put more pressure on Southern Tasmania compared to other regions.
As a result the market outcome has created an opportunity for those actively looking to purchase property. Buyers are now faced with a larger pool of properties to choose from than they’ve seen in the past decade, giving them more leverage and breathing room during the purchasing process.
One of the notable effects of this increased property inventory is that it has tempered price growth. The time it takes for properties to sell has nearly doubled over the last two years, indicating a shift toward a more measured pace of sales. Despite this slight downturn Southern Tasmania hasn’t been as severe as some had predicted. In fact, the median price of homes in Hobart, for example, is still only $13,600 lower than it was last year and 9.1% below its peak in late 2021/early 2022, which is encouraging for property owners and investors alike.
A Return to Activity at the Higher End of the Market
One of the highlights of the September quarter was the return of activity in the $1 million plus property market. Southern Tasmania saw a significant rise in sales of high-end properties, with 148 sales recorded over the quarter. This represents a notable increase from both the previous quarter and the same period last year, signalling renewed interest from both local and interstate buyers in premium properties. In fact, 79.7% of these high-value homes were acquired by local buyers, reflecting the continued strength and confidence in the local market.
Interstate Buyers: Strong but Not Overwhelming
Interstate buyers continue to be a significant factor in Tasmania’s real estate market. In September 2024, 156 mainland buyers purchased property in Southern Tasmania, with a median price of $627,500. While the level of interstate activity was not as high as it had been in the previous quarter, it was still an improvement over any other quarter from the previous year. Notably, 30 of these mainland buyers purchased properties priced above $1 million, underscoring the appeal of Tasmania’s premium properties to out-of-state investors.
These figures illustrate that while interstate buyer activity is not experiencing the same surge as it did during the pandemic, Tasmania remains an attractive destination for mainland Australians seeking a change of pace, a more affordable lifestyle, or investment opportunities in the real estate market.
Key Takeaways for Tasmania’s Real Estate Market in 2024
Southern Tasmania remains the dominant market, but its pace of recovery has been slower compared to other regions due to external factors such as interest rate increases and slowing population growth.
Price growth has been tempered, with Hobart's median prices just slightly lower than last year and significantly below the 2021 peak.
The high-end property market has seen a resurgence, with more sales in the $1 million plus category.
First home buyer activity is at a decade-high, reflecting increased accessibility and government incentives with over 200 purchases during 2024.
Investor activity has remained steady, with an uptick in acquisition prices.
Interstate buyers continue to participate in the market, with strong interest in Southern Tasmania, particularly notable at the higher end of the market.
The final quarter of 2024, indicated positive signs of increased buyer confidence, especially in the higher-end market and among first-time buyers. Though some challenges remain, Tasmania's property market all in all has had strong finish to the year.
Whether you're a first-time buyer, investor, or simply curious about Tasmania’s property potential, 2025 could offer exciting opportunities for those looking to enter or expand their presence in the Tasmanian market.