Buyer wave surging in high demand areas

In a remarkable turn of events, Tasmania’s real estate market is witnessing a surge in buyer interest, particularly in the northern suburbs. New data from PropTrack highlights an unprecedented level of demand, with suburbs like Acton, East Devonport, and Ravenswood experiencing a significant uptick in property inquiries.

The data reveals that Acton has seen a staggering 123 per cent increase in inquiries, while East Devonport and Ravenswood have grown by 84 per cent and 81 per cent, respectively. This surge is not only confined to the north, as the southern suburbs are also feeling the heat. North Hobart and Sorell’s markets have experienced a 68 per cent increase in inquiries for units, followed closely by New Town at 57 per cent and Glenorchy at 51 per cent.

The rise in interest is not just a statistic; it is a tangible shift in the market dynamics. REA Group’s senior economist Eleanor Creagh pointed out that this increase in inquiries is a strong indicator of growing buyer demand and competition. “When more buyers are competing for each property, this heightened competition typically places upward pressure on prices,” Creagh explained. “While not a guarantee, sustained increases in inquiries per listing often foreshadow increased competition and potentially price growth in those markets.”

This heightened buyer activity is reflected in the suburbs with the highest number of key inquiries per listing. Historic Evandale leads with 37 inquiries per house listing, closely followed by Battery Point, Glenorchy, and Taroona, each with 36. Kingston Beach is not far behind with 35 inquiries. When it comes to units, Hobart city tops the list with 28 inquiries, while New Town, Bellerive, Battery Point, and Sandy Bay range between 25 and 27 each.

Nick Cowley, principal of South Property Group, echoed the sentiment of rising demand across Hobart and Tasmania. “Demand has been unprecedented, with several open homes reminiscent of peak Covid trading periods,” he said. Cowley highlighted the rapid pace of sales, noting that many properties are not even making it to a scheduled Saturday open home. “We had a property in New Town sold in just three days with five offers and 17 groups attending a midweek lunchtime open house,” he shared.

The trend is not limited to mid-range properties. Cowley observed that the demand extends into the $1 million-plus market. “It continues into the $1m-plus market with properties like No.64 Rosehill Crs in Lenah Valley selling in less than a week. It attracted 27 groups to inspect it and five written offers,” he said.

This surge in interest is also driven by buyer sentiment towards interest rates. “Consistent feedback from active buyers is that interest rates are heading in the right direction, and they are looking to purchase in the market now before potential sale prices increase over the next 12 months,” Cowley explained.

The bustling market activity is evident in the rapid sales and competitive offers. In Claremont, a property attracted a dozen groups and five offers, selling in just four days. Similarly, in Howrah, a Saturday inspection drew 37 groups, resulting in a sale within a week with six competing offers. Each of these homes was sold above the listing price, underscoring the competitive nature of the current market.

As Tasmania’s real estate market continues to heat up, both buyers and sellers are navigating a landscape marked by swift sales and rising prices. The data and insights from industry experts paint a picture of a market that is not only recovering but thriving, driven by a wave of buyer enthusiasm and strategic investment.