Login
iscover
Figures out of Tasmania’s final quarter in 2021 show the extent of the state’s hot market, prompting the Real Estate Institute of Tasmania (REIT) to call for a reassessment of stamp duty to ensure the region stays hospitable to locals looking to get on the property ladder.
Tasmania’s market reached a new high in 2021, recording a cumulative sales result of $6.2 billion, and the highest number of transactions since 2003. The value of sales during the year increased 41.9 per cent over 2020, with all three of the state’s major population centres reaching record median prices.
Proving to be a popular location for a sea or tree change, the state contended with a rise of buyers from interstate coupled with a surplus of Tasmanians looking to enter the market.
But the price increases weren’t contained to the sales market alone.
REIT President Michael Walsh said that a dire shortage of properties for sale and for rent combined with an unprecedented demand for residential accommodation had pushed rents as well as sales figures to new highs.
“The likelihood that we are not going to be able to provide the stock we need in the immediate to medium future will most probably see continued upward pressure on prices and rents,” Mr Walsh said.
“This is the ninth consecutive year of price growth and we now see Tasmania achieving prices on our property comparable to many major centres on the mainland,” he added.
Mr Walsh noted that the price increases corresponded to “significant windfalls to the Government in Stamp Duty and Land Tax revenues.”
He called on the government to channel these funds into alleviating the pressure for those experiencing housing stress, and to take the opportunity to reassess the operation of these substantial levies.
“These gains present an opportunity for the government to use these funds to assist the young and disadvantaged to not only put a roof over their head but to achieve the Australian dream of owning their own home,” Mr Walsh said.
“Given the significant increase in property prices over the past three years, now is an appropriate time for the government to review the significant impost it places on those seeking to buy a home or investment property.”
He added that the REIT would be focussed on balancing the pressure between supply and demand in the year ahead, with the strength of the state’s market looking set to continue.
“The real estate industry is acutely aware of the pressure that many face in this current market and the diminishing affordability that it brings.”
“Demand for Tasmanian real estate is strong and being driven by locals. There are no signs that a drop off in the market is in sight,” Mr Walsh said.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
Newsletter
