Launceston housing market boom influenced by unaffordability of Hobart: real estate agent

Harcourts Launceston real estate agent Jeremy Wilkinson said in the past Hobart had experienced years of growth, which Launceston did not get a share of, but as figures realised in the Real Estate Industry of Tasmania's December quarter report showed, that was no longer the case.

"There was a time where Hobart was leveraging from the Mona effect, and Launceston really lagged behind there, but from what we're seeing now, is that Launceston is keeping pace with its growth, if the prices are not the same," Mr Wilkinson said.

Buyers looking to set up a family home are more often looking to Launceston as an inexpensive (compared to Hobart, Sydney and Melbourne) city option, however, median property prices had risen in response to the demand. Median house prices in Launceston are about $600,000.

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However growth has been experienced across the state, with regional areas like Devonport, Burnie, Latrobe and George Town also experiencing exponential growth.

Mr Wilkinson said the prices were still high, but the mood in the industry was that the frantic pace of the last quarter had settled.

"We are still seeing houses in that 'cheap range' the under $400,000 properties, they can sell in a day."

Properties in a higher price bracket, above $800,000, were also being snapped up quickly.

In the middle, houses could stay on the market for about a week. Mr Wilkinson said it was not uncommon for potential buyers to fly into Tasmania, inspect properties and leave with an offer.

Real Estate Industry of Tasmania state president Michael Walsh said early trends indicated that interstate investors were driving up house prices in Tasmania, but that isn't the case.

"We thought early that interstate investors would be a major driver of these changes, but what we're finding is a large proportion of local buyers are spending that money," he said.

Tasmania is having a golden moment in the sun, with its brand as a lifestyle destination aided by the decentralisation of the workforce due to the pandemic.

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"Tasmania's brand is being seen as somewhere that people can raise a family, and with people now being able to work from home due to COVID we are seeing more and more people set up roots," Mr Walsh said.

Those sentiments were echoed by Mr Wilkinson, who said Launceston was seen as an affordable option.

"Launceston is constantly ranked as one of the top 10 regional cities for liveability and affordability.

The REIT December quarter report was released on Monday.

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