Flat market report reinforces need for reduced red tape

The Real Estate Institute of Tasmania (REIT) today released its March Quarter Property Report,
which highlights real estate trends for the quarter, revealing a slight increase in house sales across
Tasmania.

REIT President Adrian Kelly said after ending 2012 on such a positive note, house sales for
Tasmania levelled out recording a 0.2 increase for the March quarter.

“Hobart house sales decreased this quarter, down 4.6 per cent and down 2.2 per cent on the same
time last year,” said Mr Kelly.

“The North-West centres saw the only increase in house sales, which were up 19.6 per cent for
the quarter and 12.6 on the same time last year.

“Launceston suffered a substantial decrease in house sales for the quarter, recording a 23.8 per
cent drop.

“After an increase of 8.8 per cent for the December quarter, house prices decreased by 5.8 per
cent for the March quarter and a 2.7 per cent decrease over the year.

“Hobart ($360,000) and Launceston ($263,000) saw a decrease in median house prices of 1.4 per
cent and 4.4 per cent respectively, while the North-West centres, after remaining relatively steady
for the previous quarter, increased 7.1 per cent.

“There are currently seven municipalities across Tasmania recording a median house price higher
than that of the State median, including Brighton, Clarence, Hobart, King Island, Kingborough,
Latrobe and the Meander Valley.”

Mr Kelly said the report reinforced the industry could ill afford changes outlined in the
Residential Property Transactions Bill, which would slow down house sales in what was already
a very flat market.

“The March Quarterly Report also showed us which suburbs in Tasmania are experiencing the
highest turnover as well as which are the most affordable and expensive,” he said.

“The top five most expensive suburbs were Acton Park, Mount Nelson, Sandy Bay, Seven Mile
Beach and Kettering, while the top five most affordable suburbs were Queenstown, George
Town, Smithton, Shorewell Park and Acton (NW).

“The top five Tasmanian suburbs with the highest turnover of house sales were Kingston, Sandy
Bay, Devonport, Howrah and Claremont.

“In a show of confidence first home buyers increased 3 per cent for the quarter, accounting for 19
per cent of house sales across the State.

“Second home buyers still hold over half the property market, with the report revealing they
account for 54 per cent of house sales at a median house price of $330,000.

“The average time to sell a house increased by 20 days for the March quarter, with the median
days on market now currently sitting at 90 days for Tasmania.”
REIT President Adrian Kelly