Supply the biggest issue in Tasmania's housing market

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on May 16, 2022 Fact Checked
Supply the biggest issue in Tasmania's housing market

New research reveals there is no “quick fix” for Tasmania’s housing supply shortage.

The Real Estate Institute of Tasmania's quarterly property market report suggests there has been a softening of the market in 2022, but a shortage of property for sale will continue to keep pressure on prices.

REIT President Michael Walsh said affordability in both rental and sales markets can only be addressed by supply. 

"Price growth had slowed but so has the number of properties coming onto the market. We are told that buyer enquiry levels and open home participation levels have dropped," he said.

"World unrest, the upcoming Federal election, rising inflation and interest rate increases have buyers and sellers cautious.

"The affordability level of both our sales and rental markets can only be addressed by increases in supply. Unfortunately, there is no quick fix."

According to the report, Hobart's house sales decreased for both the quarter (-18%) and year (-8.9%).

Despite this, The Tasmanian median house price increased 1.7% for the quarter to $610,000 - an increase of 31.3% on March last year.

Hobart's median house price increased 5.8% for the quarter and is up 31.5% on the past 12 months.

Tasmania House Prices

Median House Price Change quarter on quarter Annual change
Hobart $820,000 5.8% 31.5%
Launceston $577,000 -3.8% 37.5%
North-West Centres $453,500

3.1%

19.7%

Tasmania $610,000

1.7%

31.3%

Source: REIT

Tasmania Sales Volumes

No. sales March quarter Change quarter on quarter Annual change
Hobart 459 -18.0% -8.9%
Launceston 279 3.7% 0.7%
North-West Centres 228 -20.8% -20.6%
Tasmania 1868 -6.4% -10.5%

Source: REIT


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Aaron joined Savings.com.au in 2021. He is a finance journalist with a keen interest in property, the share market, and improving financial literacy in young Australians.

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