Leading real estate franchise network Harcourts has reported record June sales in Tasmania, with recorded total sales of $98.1 million. “It was our biggest month ever, and represents an increase in almost three percent over our previous record month,” said Harcourts Tasmania CEO Tony Morrison, noting that the state real estate network of 25 offices is currently two times larger in sales volume than its nearest competitor.
“There have been some significant residential sales to attribute this growth to. Despite the number of sales listings on the decline in much of Australia, our market marches to a different beat and is rarely on the same track.
“In fact, we have seen a steady increase in listings in a number of suburbs, along with other strong indicators of a strengthening residential real estate market.”
One example is the property at 93 Lachlan Parade, in Riverside, which sold in 30 days for a record price in the suburb. According to Jayne Harwood, General Manager Harcourts Launceston, the market is seeing a decrease in average days on market, indicating strong buyer interest.
Harcourts Launceston, the state’s best performing office over the year-end May 2017, is also bucking the national trend of a slowdown in listings, with the office maintaining an increase similar to what other Harcourts offices in the state are reporting, 2017, similar to the overall Harcourts Group Australia national figures showing and increase in both new listings and sales for the previous 12 months.
Nick Bond, owner of Harcourts Huon Valley and Harcourts number 11 ranked sales consultant nationally, agreed that strong buyer interest from interstate is contributing to record prices.
According to Mr Bond, buyers from Victoria and New South Wales are competing for larger properties in prestige areas such as the home at 671 Silver Hill Road, in Lower Wattle Grove (shown in photo), which eventually sold to an out-of-state buyer.
“There has been a lot of discussion lately about affordability in capital cities, with Hobart often mentioned as relatively good value compared to Sydney or Melbourne,” said Mr Morrison. “These are two examples of transactions in which buyers have seen good value not just in Hobart, but across Tasmania, and paid accordingly to secure the properties.”
According to CoreLogic, of the combined capitals, Hobart posted the strongest growth in June with a 2.8 per cent increase in dwelling values on the previous month, followed by Melbourne on 2.7 per cent and Sydney on 2.2 per cent. Sydney remains the most expensive city with a median dwelling value of $880,000, while Hobart is the most affordable on $355,000.
The Harcourts Tasmania network of offices recorded more than double the market share of its next closest competitor real estate company, according to figures through the 12 months ending May.