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March Quarter results reveal some areas are defying the State’s Trend
June 5, 2012
Tasmania has reported a steady start to the year, despite several key areas following nationwide downward trends. The first quarter results released by the Real Estate Institute of Tasmania (REIT), demonstrate that whilst some areas are struggling to get back on their feet, others are defying the trend and experiencing growth.
Hobart and Launceston struggle to recover
The March Quarter data shows a decrease of only 0.2% in house sales across the state. Whilst this figure is encouraging, it is still 12.3% down on the same time last year. The median house price for Tasmania decreased 1.6% from the previous quarter, and is now at $300,000. The Unit / Townhouse market also suffered, with the median falling by 10.5% over the quarter to $232,750.
Despite seeing an increase of 1.6% in house sales for the quarter, Hobart’s median house price has also seen a decline over the quarter, falling 3.3% over the quarter to $353,000. Hobart also experienced the largest decline in Unit / Townhouse medians, recording a drop of 14.0% over the quarter to $255,000.
Following the states trend, Launceston saw a decrease in the number of house sales, falling 0.9% over the quarter. Like Hobart, Launceston experienced a decrease in the median house price in Q1, dropping by 4.8% to $266,000.
Not all bad news
Despite the overall market remaining sluggish, 11 municipalities reported an increase in their median house price for the quarter, with six currently holding a higher median house price than the state-wide figure.
The North-West centre also bucked the State’s trend, reporting an increase in median house prices for Q1 of 12.9%, to $254,000. This is despite reporting a decrease of 12.7% in the volume of house sales. This is likely due to the municipality of Devonport recording a median increase of 17.3% to $262,750. Devonport is attributed to around 50% of sales in the North-West centres.