House prices tumble further in Hobart suburbs despite rise in sales activity: REIT

The median Hobart house price fell by 8.1% to a median of $340,000 in the September quarter, according to the latest figures from the Real Estate Institute of Tasmania (REIT).

This has pushed back prices to levels last seen around early 2008.

The median house price fell despite a 4.2% rise in the number of Hobart houses sold over the quarter to 393 and the number of days taken to sell a house decreasing by one day to 58.

Across the state there was a 6.2% increase in house sales to 1,242.

Figures released yesterday by RP Data-Rismark suggest Hobart house prices are continuing to fall, recording a 4.5% fall in the Hobart dwelling price over October (one month ahead of REIT figures) to a median of $300,375 with houses down 3.8% ($313,000) and units down 10.1% ($247,500).

According to the REIT, Launceston was the only region in Tasmania to record an increase in its median house price over the quarter – up just 0.9% to a median of $265,000 and the only region to record an increase in median rent paid per week, with the rent for two-bedroom units up 20% for the quarter ($270 per week) and the year, and rent for three-bedroom houses steady for the quarter ($240 per week).

Across the state the median house price fell 1.7%, a 3.4% decrease overall for the year, to a median of $285,000, while unit prices fell more steeply, down 3%, a 4.2% decrease overall for the year to a median of $232,750.

The decline did not affect the prestige suburb of Sandy Bay, just south of the CBD, where the median sales price was up 26% over the quarter and 4.9% year-on-year to a median of $640,000.

The most affordable suburbs or town in Tasmania is Queenstown, where the median price has risen 33% over the past 12 months to September to $100,000.

The price declines were particularly severe in the outer suburbs of Hobart, where the median house price fell 8.3% over the September quarter to a median of $307,250 to be down 11.6% over the past 12 months, while unit prices fell 18.5% over the quarter to a median of $232,250, down 17.8% since September last year.

House prices declined in the middle suburbs by 10.2% over the quarter to a median of $300,750, while units in the middle suburbs were more resilient, holding steady at a median of $241,000 and down a relatively modest 3.6% year-on-year.

The severe house price declines in the suburbs did not extend to the inner city, where house prices rose 7.9% to a median of $469,150 while units fell marginally by 1.9% to a median of $321,250.

REIT president Adrian Kelly says the increased number of sales over the quarter is a “positive sign bringing real estate in Tasmania back to a similar position as it was at the beginning of the year”.

“Anecdotal evidence from agencies across the state also indicates they are receiving similar or more enquires about properties for sale,” he says.

“There are currently seven municipalities across Tasmania recording a median house price higher than that of the state median, those being Brighton, Clarence, Hobart, Huon Valley, Latrobe and the West Tamar.”

First-time buyers increased slightly for the quarter, accounting for 18% of house sales across the state, with a median house price of $237,500.

Devonport on the central north coast of Tasmania recorded the highest number of sales for the quarter of 38. Despite this, house prices fell 14.2% to a median of $220,750 and are down 7.2% year-on-year.