Launceston has reached the real estate pinnacle recording the highest number of property sales in Tasmania, with prices surging by 22 per cent, according to the latest Real Estate Institute of Tasmania's quarterly report.
The Northern Tasmanian town recorded 338 sales, which was 43 sales above the second highest rating suburb of Clarence, in Tasmania's South.
Tasmania's North West made it fifth on the real estate ranking, with Devonport recording 164 sales.
REIT president Mandy Welling said the state's median house, unit and land prices had set new benchmarks, with the average house price now sitting past the half a million mark.
The average house in Tasmania is now likely to cost $510,000, the average unit $425,000 and the average block of land a cool $186,000.
All major cities and towns, including Launceston, Devonport, Burnie and Hobart, recorded their highest median prices ever, with Launceston prices up by 22 per cent, North West prices up almost 20 per cent.
REIT president Mandy Welling said the appetite for Tasmanian homes, still fuelled mostly by locals, was not slowing.
She said the resulting stock shortage for homes and rental properties remained a key challenge for the state.
"The popularity of Tasmania as a safe haven and lifestyle destination is accelerating and we can expect mainland demand for our property to grow. This will place even more pressure on an already overwhelmed market," she said.
"If the current levels of activity continue for the remainder of 2021, insurmountable pressure will continue to be placed on property prices and rents.
"Without an increase in the number of properties for sale and properties for rent the affordability gap will only widen."
Ms Welling said major private building and development projects were needed to meet future demand.
She said the state government's stamp duty windfalls should be immediately channelled into public housing.
Sign up for our newsletter to stay up to date.