Tasmanian Real Estate A Sound Investment

REIT Media Releases

Text version of media releases are available as follows:

2012 Tasmanian real estate industry sails steady course

Media Release

Tuesday, 1 May 2012

The Real Estate Institute of Tasmania (REIT) today released its March Quarter Property Report, revealing a steady start to 2012 for Tasmania, despite nationwide downward trends, with a decrease of only 0.2 per cent in house sales across the State.

REIT President Adrian Kelly said while this was encouraging, the figure was still down 12.3 per cent on the same time last year.

"Hobart saw an increase of 1.6 per cent in house sales for the quarter, while both Launceston and the North-West centres experienced decreases of 0.9 per cent and 12.7 per cent respectively," Mr Kelly said.

"The median house price for Tasmania also decreased 1.6 per cent to sit at $300,000 for the March quarter.

"Both Hobart ($353,000) and Launceston ($266,000) saw decreases in their median house prices of 3.3 per cent and 4.8 per cent respectively, while the North West centre bucked the downward trend, reporting an increase for the quarter of 12.9 per cent.

"The report wasn't all doom and gloom though, with 11 municipalities reporting an increase in their median house price for the quarter, with six currently holding a higher median house price than the statewide figure.

"These municipalities included Clarence, Glamorgan/Spring Bay, Hobart, Kingborough, Sorell and the West Tamar."

Mr Kelly said the report also highlighted the increase in the average time it takes for a house to sell in the current market.

"The average time to sell a house increased by nine days for the March quarter, with the median days on the market currently sitting at 79 days for Tasmania," he said.

"The rental vacancy rate also continued to increase in the March quarter, up 0.8 per cent to sit at 3.9 per cent.

"For those looking to sell or purchase a house in the Tasmanian market, the report also revealed the top five most expensive suburbs, which were Battery Point, Tranmere, Sandy Bay, Mount Nelson and Bellerive.

"At the other end of the scale the top five most affordable suburbs were Queenstown, Smithton, Bridgewater, Ravenswood and Somerset.

"The report also revealed that the suburbs of Devonport, Howrah, Kingston, Sandy Bay and Claremont had the highest turnover of house sales for the March quarter."

The REIT is a member organisation representing the views and the professional needs of its members - these being more than 95 per cent of real estate agents (and their staff) throughout the State.

2011 ends on positive note for Tasmania's property industry

Media Release

Thursday, 2 February 2012

 The Real Estate Institute of Tasmania (REIT) today released its December Quarter Property Report, which highlights real estate trends for the quarter, revealing an increase of 3.2 per cent in house sales across the State for the quarter.

REIT President Adrian Kelly said while this was a positive sign, the figure was still down 9.4 per cent on the same time last year.

"The median house price for Tasmania rose 3.4 per cent to sit at $305,000 for the quarter, representing a 4.7 per cent decrease for the entire year," Mr Kelly said.

"Hobart ($365,000) and Launceston ($280,000) both saw an increase in their median house prices of 5.8 per cent and 3.7 per cent respectively, while the North-West centres ($225,000) decreased 4.3 per cent for the quarter.

"Inner Hobart saw the biggest increase of 8.3 per cent, to take its median house price to $471,310.

"There are currently four municipalities across Tasmania recording a median house price higher than that of the State median, those being Clarence, Hobart, Kingborough and the Meander Valley."

Mr Kelly said the report highlighted the mixed messages currently surrounding the Tasmanian property industry.

"Before Christmas, real estate agents were delighted to experience an increased level of interest from property owners to go on the market, accompanied by an increased attendance at open homes and auctions," he said.

"However many buyers are still sitting tight and waiting to see which direction the market takes.

"The December Quarter Report also showed us which suburbs in Tasmania are experiencing the highest turnover as well as which are the most affordable and expensive.

"The top three most expensive suburbs were East Launceston, Tranmere and Sandy Bay, while the top three most affordable suburbs were Bridgewater, George Town and Ravenswood.

"The top three Tasmanian suburbs with the highest turnover of house sales were Sandy Bay, Devonport and Howrah.

"Second time buyers accounted for 56 per cent of the housing market in the December quarter, with first time buyers accounting for just 17 per cent of house sales, and interstate buyers accounting for 14 per cent of house sales.

"Although houses had an extra 18 days on their median days on market from the December 2010 quarter, the report showed an improvement from the September quarter which sat at 81 days, with the December 2011 quarter recording a median days on market of 70 days."

The REIT is a member organisation representing the views and the professional needs of its members - these being more than 95 per cent of real estate agents (and their staff) throughout the State.

September quarter steady as she goes

Media Release

Monday, 28 November 2011

The Real Estate Institute of Tasmania (REIT) today released the September Quarter Property Report, highlighting real estate trends for the quarter, which showed Tasmania was slightly down in total residential sales.

REIT President Adrian Kelly said across the State there was a 3.2 per cent reduction in house sales on the previous quarter and a 4.8 per cent drop in sales for the year.

"The median house price for Tasmania fell slightly by 3.2 per cent to $295,100 for the quarter," Mr Kelly said.

"Launceston, Hobart and the North West centres median house prices all fell slightly, with Launceston falling the least by only 1.8 per cent over the quarter.

"Interestingly, nearly two-thirds of all sales were in the $250,000 to $450,000 price range, with around one quarter of these on the eastern shore in the Clarence municipality.

"There are currently six municipalities across Tasmania recording a media house price higher than that of the State median, those being Brighton, Clarence, Glamorgan/Spring Bay, Hobart, Kingborough and the Meander Valley."

"Due to interest rates and other such factors stabilising, most Tasmanian agents are now reporting a substantial increase in sales over the past six to eight weeks and we expect this trend to continue into the new year."

Mr Kelly said the report also showed that the top three most expensive suburbs in Tasmania were Battery Point, Sandy Bay and East Launceston.

"At the other end of the spectrum, the three least expensive suburbs in Tasmania were Queenstown, Ravenswood and Beaconsfield," he said.

"The three suburbs with the highest turnover in house sales were Devonport, Kingston and Glenorchy.

"The report also highlighted the increase in median days a house is on the market prior to selling.

"The median days on market for Tasmania increased 14 days for the quarter, with houses taking around 81 days to sell.  Launceston improved by two days to sit at 70 days, while Hobart and the North West centres took an extra 10 and nine days to sell respectively.

"Investors accounted for 13 per cent of the buyer market, with first home buyers remaining relatively steady for the quarter with 16 per cent of sales.

"Investors and overseas buyers also remained steady, accounting for 11 per cent of house sales across Tasmania."

The REIT is a member organisation representing the views and the professional needs of its members - these being more than 95 per cent of real estate agents (and their staff) throughout the State.

ENDS

Tasmanian house sales continue to decline

Media Release
Wednesday, 10 August 2011

The Real Estate Institute of Tasmania (REIT) today released the June 2011 Quarterly Property Report,
revealing that while the volume of house sales across Tasmania has continued to fall, house prices at least
have remained steady.

REIT President Adrian Kelly said during the June quarter, house sales in Tasmania had fallen by 10.2 per
cent across the State and were down 15.3 per cent on last year.

Mr Kelly said the only area to see an increase in Tasmania was the inner Hobart area with an 0.8 per cent
increase in sales for the quarter, while middle Hobart saw a 7.1 per cent decline in sales and outer Hobart
registered a fall of 10.4 per cent.

"Overall, sales for the Hobart area declined by 5.6 per cent for the quarter, while in Launceston and the
North West there was a fall of 5.2 per cent and 13.4 per cent respectively," Mr Kelly said.

Mr Kelly said the median house prices for Tasmania remained steady at $305,000, which represented a 1.6
per cent decline for the year, but was still 7 per cent up on two years ago.

"While there was a slight increase in the median house price in Hobart, up 2.4 per cent to $370,000, both
Launceston and the North West Coast house prices eased by 1.8 per cent and 1.2 per cent respectively to
$275,000 and $243,000."

Mr Kelly said it was heartening that house prices were remaining constant, especially given the double
whammy of declining sales and falling consumer confidence.

"On the bright side, spring is just around the corner and traditionally this is when there is usually a lift in
sales performance," Mr Kelly said.

"In addition, the Reserve Bank decision to hold off on an interest rate increase is also welcome news."
Mr Kelly said despite the gloom and doom talk of some property experts it was pleasing to see that the
market in Tasmania was holding up reasonably well, particularly by comparison with other states.

"In terms of rental returns for houses, the average rental in Hobart of $330 was a slight fall over what had
been a previously high quarter, but were still up 3.1 per cent on last year, while unit rental median prices of
$270 had remained steady for the year," he said.

"The vacancy rate of rental property market remained tight, with a slight increase in Hobart and the North-
West, while Launceston remained steady for the quarter."

Mr Kelly said investors currently made up 13 per cent of house sales in Tasmania, first home buyers
remained steady at 15 per cent, while interstate and overseas buyers represented around 15 per cent.

ENDS

Volume of house sales at lowest point in two decades

The Real Estate Institute of Tasmania (REIT) today released the March 2011 Quarterly Property Report, revealing the volume of house sales across Tasmania is at its lowest point in two decades.

REIT President Adrian Kelly said during the March quarter, while house sales in Tasmania had increased by 3.1 per cent, the figures were still down 18 per cent on the previous March quarter.

"The reason for the low number of sales is not due to a lack of houses on the market, but the fact that many properties are overpriced," Mr Kelly said.

"Those houses that are priced correctly are selling in a reasonable time frame, while those that are overpriced are just sitting there.

"The March quarterly report revealed the average number of days a house sat on the market increased by 11 days on the same quarter the previous year, now sitting at an average of 64 days.

"Anyone currently selling a house in Tasmania needs to be willing to meet market prices or be ready for their house to sit on the market for up to a year or more."

 "Buyers are certainly not silly, with most buyers being well aware of the estimated value of a property, so if a property is overpriced, even by five per cent, it's not going to be sold in a hurry."

Mr Kelly said contained within the report was the statewide median house price, which remained relatively steady for the March quarter, recording a marginal decrease to $310,000.

"The report also showed that Launceston was the only centre to record an increase in median house price for the quarter, with a 1.8 per cent rise," he said.

"Hobart and the north west centres' median house prices decreased by 5.6 per cent and               3.3 per cent respectively.

"Interestingly, house purchases made by people interstate were up 23.3 per cent.  Interstate purchasers are spending an average of $320,000, mainly in the areas of Launceston, Kingborough and West Tamar.

"One out of every four properties sold during the March quarter was purchased for investment purposes, although these were cheaper houses, with each investor spending an average of $245,000 on a property.

Mr Kelly said the quarterly report also revealed the top three most expensive suburbs in Tasmania, which were Sandy Bay, Kettering and Mount Nelson, while the top three least expensive suburbs were Waverly, Scottsdale and Bridgewater.

"The top three Tasmanian suburbs with the highest turnover in house sales were Devonport, Glenorchy and Kingston," he said.

The REIT is a member organisation representing the views and the professional needs of its members - these being more than 95 per cent of real estate agents (and their staff) throughout the State.

ENDS

January sales figures still down

The Real Estate Institute of Tasmania (REIT) today released the REIT Market Report for January 2011 which shows house sales are still down 6.3 per cent compared to figures for January last year.

REIT President Adrian Kelly said while the actual ratio of property listings and sales was difficult to analyse, anecdotally we are hearing that there are a lot of listings on the market at present.

"However, unless properties are realistically priced, and not based on high hopes or what the Tasmanian property market conditions were doing a year or so ago, these houses will remain on the market unsold," Mr Kelly said.

"Regrettably, the longer a house stays on the market, the more questions are asked about what might be wrong with it and why isn't it selling.

"The Market Report also shows that the statewide median house price (based purely on recent sales) is remaining relatively steady, coming in at $296,500 for January, down just 1.2 per cent on January last year.

"Hobart recorded a median house price for January at $365,000, while Launceston recorded a median house price of $270,000, and the North West Centres reporting a median house price at xxxx.

"This steadying trend has been the same for the past few years, keeping investment in property an attractive option, but on the flip side with no likelihood of prices dropping, those first home buyers trying desperately to get into the market are being kept out.

"Compared with other Australian States, the latest quarterly figures from South Australia show that their median house price was up 5.4 per cent to sit at $385,000, while in Victoria the median house price was up 6.9 per cent to $601,000.

"These figures show us that most areas are experiencing the same situation as Tasmania which is a drop in the number of sales, but the actual prices of those house sales are remaining steady."

Mr Kelly said the REIT Market Report also showed the vacancy rate remaining tight across the entire State.

"Hobart's vacancy rate was 2.4 per cent, Launceston's rate was 1.9 per cent and the North West Centres recorded a vacancy rate of 3.3 per cent," he said.

"These figures highlight the continuation of the tight rental market, also evidenced by the large number of people waiting for rental properties, compounded by a chronic shortage of properties for sale for the right price, and in the right areas."

The REIT is a member organisation representing the views and the professional needs of its members - these being more than 95 per cent of real estate agents (and their staff) throughout the State.

ENDS

December quarter enters peak summer season

Media release

Tuesday, 1 February 2011

The Real Estate Institute of Tasmania (REIT) today released the December 2010 Property Quarterly Report which showed Tasmania was up 3.5 per cent in total residential sales volume on the previous quarter, but still down 18 per cent on the 2009 December quarter.

REIT President Adrian Kelly said sales figures vary month to month and quarter to quarter, but like many Australian states and territories, the total number of houses currently being sold is down by around 20 per cent or more, compared to the same quarter 12 months ago.

"The report also shows that sales enquiries from potential buyers have increased, as we head into the peak summer real estate selling season," Mr Kelly said.

"However buyers still remain cautions, with concerns around economic uncertainty and rising interest rates."

Mr Kelly said the report also showed that the median house price for Tasmania ($320,000), which is based purely on recent sales, increased by 3.2 per cent over the December quarter.

"Interestingly there were four municipalities across the State which exceeded this median house price, including Clarence, Glamorgan/Spring Bay, Hobart and Kingborough," he said.

"Also highlighted in the quarter report were the top five most expensive suburbs in Tasmania which were Battery Point, Tolmans Hill, Sandy Bay, New Town and Acton Park.

"While at the other end of the scale, the top five most affordable Tasmanian suburbs/towns were Waverly, Ravenswood, Bridgewater, Montello and Primrose Sands.

"The top five suburbs/towns which recorded the highest house sales turnover were Kingston, Devonport, Howrah, Sandy Bay and Riverside."

Mr Kelly said the 'days on market' industry figure, which monitors  how long houses take to sell, was sitting at 52 days for the December quarter, compared to 44 days during the same time in 2009.

"It is important that vendors set a realistic asking price for their home, as a price that is too high may cause the vendor to have a very long wait," he said.

"The longer a house sits on the market, the more questions are asked about what might be wrong with it and why it isn't selling.

"The report also shows us that the housing shortage continues in Tasmania, evidenced by the continuation of the tight rental market.

"The rental vacancy rate increased in all three regions, with Hobart recording an increase of       0.2 per cent to sit at 2.2 per cent, and both Launceston and the North West centres rising by       0.1 per cent for the quarter."

The REIT is a member organisation representing the views and the professional needs of its members - these being more than 95 per cent of real estate agents (and their staff) throughout the State.

House sales in Tasmania show first signs of a turn around

Media release

Tuesday, 30 November 2010

The Real Estate Institute of Tasmania (REIT) today released the October property report which showed that house sales across Tasmania rose for the month, returning to a similar level to that prior to the introduction of the first home buyers boost.

REIT President Adrian Kelly said sales across Tasmania rose by 9.8 per cent for the month of October, picking up from a 2.9 per cent drop in September.

"Sales for the State have now returned to a similar level as at October 2008, prior to the first home buyers boost being introduced in 2009," Mr Kelly said.

"While house sales across all areas fell for the year, Hobart, Launceston and Devonport all recorded an increase in sales for the month.

"The suburbs of New Town, Moonah, Sandy Bay and Taroona helped drive additional sales in the south of the State, while the areas of Newstead and Norwood assisted the increase in sales for Launceston."

Mr Kelly said the report also showed that the median house price for Tasmania rose 2.3 per cent for the month and 7.6 per cent for the year.

"Hobart's median house price eased 0.9 per cent for the year, to sit at $370, 000," he said.

"Launceston's median house price for October sat at $273,750 which is an increase of 5.3 per cent on the previous month and 2 per cent for the year."

Mr Kelly said the report also revealed that first home buyers accounted for 18.3 per cent of house sales for October.

"In addition, investors accounted for 20.6 per cent of house purchases, while second home buyers accounted for the majority of the house market, taking 48.3 per cent of house sales," he said.

"Tasmania's rental market remained steady at 2.3 per cent for October.

"Launceston's rental vacancy rate saw a 0.2 per cent increase to 1.7 per cent, compared to both Hobart and the North West centre's which both decreased 0.1 per cent for the month."

The REIT is a member organisation representing the views and the professional needs of its members - these being more than 165 real estate agents (and their staff) throughout the State.

ENDS

Dramatic drop in number of homes during September quarter

Media release

Monday, 1 November 2010

The Real Estate Institute of Tasmania (REIT) today released the September Quarter Property report, highlighting Tasmanian real estate trends for the quarter, which showed a substantial drop in the number of house sold statewide.

REIT President Adrian Kelly said across the State there was a 11.7 per cent drop in house sales for the quarter and a substantial 23.2 per cent drop in sales compared to the 2009 September quarter.

"The median house price for Tasmania remained steady for the quarter at $310,000, however recorded a 7.6 per cent increase for the year," Mr Kelly said.

"Of the three main areas around the State, Hobart recorded the only median house price increase for the quarter, up 3.7 per cent, while Launceston's median house price decreased by 4.7 per cent to sit at $267,500.

"Although Burnie's median house price increased both for the quarter and the year, the north west centre as a whole, dropped 3 per cent for the quarter.

"There are currently five municipalities across Tasmania recording a median house price higher than that of the State median, those being Clarence, Glamorgan/Spring Bay, Hobart, Kentish and Kingborough.

"What these figures show is that while the number of houses being sold in Tasmania has dropped, the house prices have remained relatively steady.

"House prices have remained stable due to a shortage of properties, which is great news for anyone thinking of selling their home, and great news for the Tasmanian property market which remains relatively unscathed by the global financial crisis."

Mr Kelly said the report also showed that the top three most expensive suburbs in Tasmania were Sandy Bay, Acton Park and Bellerive.

"At the other end of the scale, the three least expensive suburbs in Tasmania were Smithon, Ravenswood and George Town," he said.

"Second home buyers still hold the dominant share of the housing marketing, recording a 57 per cent share for the quarter, with a median house price of $340,000.

"Investors accounted for 14 per cent of the buyer market, with first home buyers increasing 3 per cent over the quarter, accounting for 14 per cent of house sales.

The REIT is a member organisation representing the views and the professional needs of its members - these being more than 165 real estate agents (and their staff) throughout the State.

ENDS

North and north west lead house sales in Tasmania

Media release

Monday, 30 August 2010

The Real Estate Institute of Tasmania (REIT) today released the July property report which showed that while house sales were down in the south of the State for July, sales in the north and north west increased by 15.6 per cent and 22.2 per cent respectively.

REIT President Peter Bushby said sales across Tasmania were down 1.1 per cent on the previous month's figures and showed a decrease of 27.2 per cent on the number of house sales in July last year.

"The decrease in Hobart's house sales of 9.1 per cent for the month of July can be mainly attributed to fewer sales in Hobart's northern suburbs," Mr Bushby said.

"House sales south of Hobart were stronger, particularly in the Huon Valley and closer to the CBD in the Kingborough region.

"Launceston's increase in sales were due to stronger sales in Kings Meadows and South Launceston."

Mr Bushby said the report also showed that the median house price for Tasmania reached $326,000 for July, a drop of 1.2 per cent on June and 8.7 per cent for the year.

"Following three months of consecutive drops in Hobart's median house price, during the month of July Hobart turned the tables and recorded an increase of 4.2 per cent," he said.

"After Launceston recorded a sharp fall of 11.9 per cent in its median house price in June it bounced back by 9.2 per cent to reach $274,000.

"Both Ulverstone and Devonport's median house price eased back this month, with decreases of 18.9 per cent and 5.4 per cent respectively.  Burnie however saw an increase of 6.8 per cent for the month."

Mr Bushy said the median days on market to sell a house had increased by one day to record 57 days in July, compared to 56 days at the same time last year.

"The median days on market for Hobart dropped from 49 in July 2009 to 46, while in Launceston it increased from 37 days last year to 58 days this July.  In the north west it also increased, recording 61 days in July 2009 and 74 days in July 2010," he said.

The REIT is a member organisation representing the views and the professional needs of its members - these being more than 165 real estate agents (and their staff) throughout the State.

ENDS

June Quarter Property Report shows decrease in sales

Media release

Monday, 2 August 2010

The Real Estate Institute of Tasmania (REIT) today released its June Quarter Property Report which showed an 8.6 per cent reduction in house sales across Tasmania for the quarter, as well as a 20.8 per cent decrease on the same quarter last year.

REIT President Peter Bushby said the North West was the only area in Tasmania to record an increase in house sales for the quarter, recording a 1.4 per cent increase.

"House sales in Launceston were down by 11.6 per cent on the March quarter, alongside Hobart's house sales which decreased by 9.2 per cent for the quarter," Mr Bushby said.

"Across the State, the top three areas with the highest turnover of house sales were Devonport, Kingston and Sandy Bay."

Mr Bushby said after Tasmania recorded its highest median house price in the March 2010 quarter, the median house price for Tasmania eased slightly (1.1 per cent) over the June quarter to $310,000.

"Over the year, the Tasmanian median house price increased by 8.8 per cent," he said.

"The North West centres saw the biggest increase in its median house price over the year, reporting a 16 per cent jump, followed by Hobart which recorded a 9.1 per cent increase and Launceston, which reported a 7.9 per cent increase.

"The report also highlighted the increase in the median house price for outer Hobart houses, which increased by 19.4 per cent for the year and 8.8 per cent for the June quarter.

"This is also highlighted in the June quarter's top three most expensive suburbs in Tasmania which are Sandy Bay, with a median house price of $700,000, followed by Tranmere, with a reported median house price of $625,000 and Acton Park which came in at $575,000."

Mr Bushby said it was positive to see the rental vacancy rates across Tasmania either increasing or remaining steady.

"Encouragingly Hobart's vacancy rate remained steady for the quarter at 2.2 per cent, while Launceston recorded an increase of 0.2 per cent bringing it up to 1.8 per cent," he said.

 "The North West centre's vacancy rate also continued to rise with a 0.5 per cent increase for the quarter to take it up to 3.2 per cent."

The REIT is a member organisation representing the views and the professional needs of its members - these being more than 165 real estate agents (and their staff) throughout the State.