‘Head and shoulders above all else’: Hot spots revealed

What do Invermay and South Launceston have in common?

They have been named as Tasmania’s hottest housing markets in a new national property report, and are ranked among the top 50 most expensive areas in the country.

Hotspotting’s Price Predictor Index asserts that retail prices are a forward-looking indicator of price movements.

With median house prices of $500,000 and $600,000, these Tassie areas recorded quarterly sales rising from 13 to 34 in Invermay and from 12 to 32 in South Launceston; a consistent trend over the past five quarters.

Hotspotting’s autumn report placed Launceston among the country’s Top 10 municipalities, with the last four places rising from 358 to 367, 393 and then 440.

Regional Tasmania, 52 markets, was also highlighted in the report, with sales from between 1631-1680 in 2024 to between 1838 and 2019.

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Hotspotting founder and property analyst Terry Ryder.

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Hotspotting managing director Terry Ryder said Launceston stood “head and shoulders above the rest”.

He said sales in the latest quarter were 29 percent higher than a year ago.

“Of Launceston’s 16 major markets, 75 per cent have positive ratings in the PPI report, including six growing areas and five stagnating areas,” he said.

McGrath Launceston principal Josh Hart said across Greater Launceston, stock levels were closer to Covid levels than in a normal healthy market.

He said the total stock of houses, land, townhouses, units during the crisis was less than 600 properties, while a strong market would have up to 1200 listings.

There are currently 920 sites, Mr Hart said.

McGrath Launceston principal Josh Hart. Image: Provided

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“And the unspoken truth is that 30 percent of those 920 will be under contract, making the number closer to 700,” he said.

“Good results are obtained as buyers prioritize finding a property.

“Long-term housing and rental properties are increasing so people have time to find what they want to buy after selling.”

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No.443 Wellington St, South Launceston is for sale between $785,000-$875,000.

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No.7 Carrera Pl, Norwood is priced between $1.9m and $2.2m.

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Mr Hart said FHB and investors were working in the $450,000-$600,000 range, mainly with low rental stock, fewer vacancies and higher yields.

“The mid-sized industry is family-run, while the luxury market is growing and attracting NSW and QLD buyers who are relocating because of the weather,” he said.

“In the past, it was the Baby Boomers, but now young professionals are making the same decision.”

Meanwhile down south, Hotspotting ranked Hobart on the winning side in the Winners and Losers section of the report.

Mr Ryder found that Hobart had no markets where transaction levels were falling.

“Tasmania’s capital market is about stability, with evidence of moderate growth, rather than dramatic growth,” he said.

“The municipality of Glenorchy, renowned for its affordable options, has recorded strong sales levels over the past six quarters, led by steady markets in Lutana and West Moonah (houses) and suburb Glenorchy (units).”

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He noted increased momentum in Hobart and Clarence LGAs.

“Sales in the inner city were up 16 per cent in the last quarter, with Clarence recording a 14 per cent increase,” he said.

No.1/16 Regina St, Glenorchy is on the market for $625,000-plus.

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No.13 Audley St, North Hobart is valued at $1.73m.

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Principal at South Property Group, Nick Cowley said the Hobart market had remained stable over the past six months, increasing slightly by 2.5 per cent year-on-year.

“I would expect that this momentum will continue to be the same in the coming months,” he said.

Mr Cowley said investors dominated the market in the under $700,000 bracket in the December quarter, growing by more than 100 per cent compared to last year.

“Sixty-five percent of the sales were from foreign investors. The stock chase that we see every day continues,” he said.

Nick Cowley, principal of South Property Group

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Mr Cowley said that with interest rate increases predicted, the future of the market will be interesting to see.

“Although this does not affect the census of people under $750,000,” he said.

“Low stock numbers will continue to drive prices up during the cooler months.

“The Australian Government’s changes to the 5 per cent deposit and $30,000 First Home Owner Grant will continue to support new buyers.

“We’re expecting a number of major developments, units and houses, to hit the market in the spring – so keep an eye out for those.”