Price Jumps In Top Three Show The Difference A Year Can Make
UNIT owners in three Tasmanian suburbs might be sitting on a gold mine.
The latest figures from CoreLogic show strong median price growth in these neighbourhoods of more than 40 per cent in the past year.
In the 12 months through to the end of February, 33 Battery Point units were sold at a median price of $751,000. Over that year-long period the median grew by 44.3 per cent.
Just 2km from Launceston’s CBD, Newstead unit sales soared upward by 43.8 per cent. There were 44 sales at a median of $260,000.
And 8km south of Launceston, Hadspen’s 18 unit sales recorded median price growth of 40.8 per cent. Those homes were sold at a median of $250,000.
The median price refers to the midway point of all the units sold over a set period.
“If there are a number of buyers looking in a location like Battery Point or Newstead — which are not large areas — there is bound to be fierce competition between potential buyers resulting in multiple offers on a property and this forces prices upward.
“It is what we predicted would happen when we recognised stock levels had tightened dramatically.
“Compared to two years ago, we have about 70 per cent less listings.”
One Agency Launceston director Josh Hart said Newstead and Hadspen had experienced significant upswing in the past 12 months because of their affordability and the services they offer compared with neighbouring suburbs.
Mr Hart said Newstead had always been sought after by first-home buyers and retirees who typically buy units.
“It is close to the Launceston CBD and has fantastic access to doctors, supermarkets, private and public schools, as well as plenty of walking tracks and lifestyle opportunities,” he said.
“A number of buyers are hesitant to go any further out of Launceston due to the security of Newstead and the consistent price growth — being next to East Launceston provides stability.”
Mr Hart said builders and developers had noticed this demand and infill developments were now a common sight, which provides “more opportunities to purchase and more high quality sales are being achieved”.
Mr Hart said Hadspen was solely driven by new development.
He said in the past it had been “a suburb on the outer”, however the flat layout and river access of the suburb — as well as its affordability — had put Hadspen on the map.
“Suburbs once of consideration such as Prospect, Prospect Vale and Kings Meadows are now out of reach for these buyers due to their increased prices,” Mr Hart said.
“This data on Hadspen is not surprising, I would expect this to be the case in the coming years as further development increases in this once quiet enclave.”
Knight Frank sales consultants Jim Playsted and Lynne Page see increased competition throughout Greater Hobart as one of many drivers pushing prices upward in the desirable Battery Point market. Mr Playsted said investing in Battery Point units to use for short-term accommodation was a good fit.
“It means those that come to stay are within short walking distance of the city and the delights of this area,” he said.
“The listing we currently have in De Witt St, as a long- term rental — at the top end — it could be rented for $330 per week but as a short-term rental you could achieve that in just two nights.”
Mrs Page said when people get creative with their property it can be well worth their while.
She said there were examples where a large house had been redeveloped into smaller units and the value of the rent that could be achieved was tripled.
“Local buyers seem to have changed their mindset,” she said.
“Tasmanians have recognised the value in our property and are right in there driving up the prices alongside competition from interstate buyers.” There are currently six units, townhouses or villas for sale on realestate.com.au in Newstead. They are priced between “offers over $129,000” to “best offer over $475,000”.
There is a choice of just four units in Hadspen priced between $137,500 and “offers over $219,000”.
In the South, the cheapest of the five Battery Point unit listings is priced at “offers over $475,000” alongside a few EOI campaigns and a couple of apartments listed over the $1 million mark.
The latest figures from CommSec show a six-and-a-half-year high for council unit approvals in Hobart.
TOP OF THE TOWN
Suburb, unit sales, median price growth 12 months, median change price three years, median rent per week
Battery Point 33 44.3% 54.8% $450
Newstead 44 43.8% 36.8% $220
Hadspen 18 40.8% 49.3% $240
Source: CoreLogic MarketTrends report for the 12 months to end of February, minimum of 15 units sold