Home News Supply the biggest issue in Tasmania's housing market

Supply the biggest issue in Tasmania's housing market

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

First published on 16 May 2022

Supply the biggest issue in Tasmania's housing market

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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Lender	Home Loan	Interest Rate	Comparison Rate*	Monthly Repayment	Repayment type	Rate Type	Ongoing Fees	Upfront Fees	Max LVR	Tags	Features	Link	Compare	Promoted Product	Disclosure
loans.com.au	loans.com.au Variable Home Loan P&I <90%	5.54% p.a.	5.58% p.a.	$2,852	Principal & Interest	Variable	$0	$530	90%	Owner Occupier Variable Principal & Interest 10% Min Deposit Redraw Extra Repayments More details	Available for purchase or refinance, min 10% deposit needed to qualify. No application, ongoing monthly or annual fees. Quick and easy online application process.	More details	Compare	Promoted	Disclosure
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Ubank (part of NAB)	Ubank (part of NAB) Flex variable home loan - 100% offset	5.64% p.a.	5.89% p.a.	$2,883	Principal & Interest	Variable	$250	$250	60%	100% offset Owner Occupier Variable Principal & Interest 40% Min Deposit Offset Redraw More details	Easy application. Fast approval. 100% offset. Unlimited additional repayments free of charge. Redraw available - Access additional payments.	More details	Compare	Promoted	Disclosure
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Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

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Aaron Bell

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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