No.135 Dorans Rd, Sandford was listed for sale by Peterswald for $1.55m, and sold quickly for $1.67m. Photo: Provided
Seven Tasmanian areas are among the best in the country, new data has revealed.
PropTrack’s analysis reveals 3,224 suburbs across the country experienced price increases of more than 10 percent.
Figures for the December quarter show that houses in Gagebrook and Mayfield recorded increases of 12 per cent, while Chigwell, Sandford, Herdsmans Cove, and Shorewell Park jumped by 13 per cent.
Units in New Norfolk also increased by 13 percent.
Most of these towns have median sales prices in the $400,000s, with the exception of Chigwell at $557,000 and Sandford at $1.117m. And between $45,154 and $62,894 was added to the average price in these areas.
The outlier was the more expensive Sandford, where a 13 percent increase added more than $127,000 to its median price.
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No.135 Dorans Rd, Sandford.
No.135 Dorans Rd, Sandford.
PropTrack economist Anne Flaherty noted that, nationally, most of these fastest-growing areas were affordable areas, especially those priced under $800,000.
“Affordability drives more people to more affordable areas,” he said.
He said the increase in demand for affordable housing is partly due to increased activity from investors, who tend to target units in some of the city’s cheapest areas.
These investors often find themselves in competition with first-time home buyers, who have been supported since October by the Extended First Home Guarantee Program.
The move allows eligible buyers to purchase properties with as little as 5 percent deposit, bypassing the need for expensive mortgage insurance.
Ms. Flaherty emphasized that many properties that are affordable enough to be below the average price for this first-time buyer support are attractive properties for investors.
“Investors have been coming back to the market looking for long-term growth. It is clear that we have a housing shortage that will take time to fix,” he said.
“Investors realize that population growth is strong, and we are not building enough, and there has been a reduction in interest rates, so there have been long-term (value) growth expectations.”
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Meanwhile, Hotspotting named Tasmania’s largest population centers in its top 10 capital growth prospects.
The National 10 Best Buys report identifies future growth markets with a focus on “long-term, low-risk growth rather than short-term hype”.
Hotspotting founder Terry Ryder said Hobart’s great combination of physical constraints, high-value industries and an investment pipeline was set to support its future operations.
“Economically, it is supported by healthcare, marine science, advanced manufacturing and Australia’s Antarctic research sector, all of which create stable employment and consistent housing demand,” he said.
“Glenorchy is a big focus because it is currently struggling across the region and is still one of the most affordable entry points in greater Hobart. Consumer demand is increasing.
“Looking forward, additional housing planning goals are intended to be met primarily through infill and consolidation, which is an approach that supports established suburbs by concentrating new supply where demand is strongest, while preserving the deficit that supports long-term growth.”
A 25-unit residential property at No.60 Lower Rd, New Norfolk was sold by Elders Commercial last year.
Hotspotting director Tim Graham said Launceston’s large and diverse economy – and its housing affordability by national standards – was helping to keep yields strong and keeping the buyer pool wide.
Mr Graham said that with commercial activity improving across most metropolitan areas and an affordable price base, Launceston presented a viable, repeatable future growth story for investors looking for momentum without metropolitan price points.
“The drivers for the region are important with the major multi-year development of Launceston General Hospital to increase healthcare capacity and increase employment opportunities,” he said.
“Renewable energy projects proposed and approved across the region add another layer of job creation and investment certainty.
“What stands out is the investment in advanced technology, including a major AI center being built in St Leonards and plans for an AI-focused area.”
Looking ahead, Ms Flaherty warned that many of the fastest growing markets in 2025 are unlikely to continue their momentum in 2026, as consumer demand may be dampened by continued price increases.
Instead, buyers are expected to move up to new suburbs that offer better perceived value, with a focus on ever-changing shopping.
“It’s complicated,” he admitted.
“Price growth can continue in highly competitive markets because buyers who have experienced competition or see tough competition are more likely to stretch their budgets and offer more than they originally planned. But you can get markets to a point where they are unaffordable.
“We’ve seen cases increase in price ($200,000) a year and since these areas are not easily accessible, buyers are decreasing.”
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Ms Flaherty concluded that the First Home Guarantee Program will remain a key driver of demand throughout 2026, ensuring strong performance for below-average properties in each region.
