One property expert predicts Northern Tasmania’s housing boom will continue for another 12 to 18 months.
The Real Estate Institute of Tasmania’s June quarterly report was released on Friday, showing median house prices had grown by 16.1 per cent in Launceston and 11.6 per cent in “North-West centres” in the past year.
Continued growth in the sector comes during a turbulent time for mainland home owners, with the median house prices in Sydney and Melbourne down 5.4 and 3 per cent respectively since their 2017 peaks.
However, REIT president Tony Collidge believes the housing markets in Launceston, Devonport and Burnie will see annual double-digit growth into 2020, while Hobart’s will experience between 2 and 4 per cent growth.
“The [mainland and Tasmanian] markets run independently – down here, our property bust and boom cycle ties in with our economic performance,” he said.
“Hobart is already starting to slow … but that’s not to do with the economic side of things, it’s more because [the housing boom] has been going for four years and I think some people are starting to get toey about how much they’re prepared to pay for property.
“In Hobart there are only two suburbs that aren’t at their highest ever price, but when i look in the north and north-west there is a huge percentage [of suburbs] that have not reached their highest price point yet.”
Tasmanian executive of the Property Council of Australia Brian Wightman agreed with Mr Collidge, saying the state has a chance to insulate itself against mainland boom and bust cycles.
“Tasmania has a solid economic base, driving improved business conditions and confidence,” he said.
Independent economist Saul Eslake believes price rises are set to slow down across the entire state.
“I wouldn’t be surprised if we are passed the peak,” he said.
“I don’t think there’s a great distinction between the north and the south on this issue – there are broadly similar factors, which are affecting the markets.”