As sales of properties ease due to COVID-19, the sale of vacant land has been a standout, according to REIT president Mandy Welling.
When Tasmania closed its borders in response to COVID-19, it was no surprise to the experts that property sales would see a downward trend.
While property sales performed as expected, there was a surprise in the area of vacant land sales.
"We all expected a downward trend and that’s exactly what has been delivered, with the exception of land sales," said REIT president Mandy Wellings.
At a Glance:
"Tasmania has experienced a 27.5 per cent decrease in house sales for the month.
"Hobart declined 36.8 per cent, Launceston 39 per cent and the North West down by 12.3 per cent.
"House prices have also experienced a decline with Hobart down 13.8 per cent and Launceston 0.8 per cent."
Ms Welling said the North West region was the only portion of the State to remain steady when it came to house prices.
Across the entire state the decrease was a modest 2.2 per cent.
"The stand out was vacant land sales," said Ms Welling.
"There has been an increase in land sales by 1.6 per cent compared to the same time last year (April 2019).
"This is good news with the potential to assist the building industry as they have noticed a down turn in new building approvals."
Ms Welling said an obvious easing in sales has been seen with houses in the $500,000 and above price bracket.
"This has aided in the decline in the median price in this sector," said Ms Welling.
"With all that, properties are still selling on average 1.7 per cent above their list price which tells us there are still buyers out there creating competition in the market place and a certain level of consumer confidence.
"The majority (48.3 per cent) of buyers are from local suburbs or towns and this is quickly followed by interstate buyers at 16.9 per cent.
"We suspect that the reported interstate buyers will reduce next month as the travel restrictions really start to take effect."
Ms Welling told WILLIAMS MEDIA now that open homes and on-site auctions have been re-introduced, consumer confidence should rise again.
"The only thing to see us go backwards again would be another breakout of Coronavirus," said Ms Welling.
Types of buyers
Second time buyers are the leaders for the ‘types’ of buyers representing 39.1 per cent of all consumers and first home buyers at 23.1 per cent.
"An increase in first home buyers is a great sign and these are up by 6 per cent this month on the previous with second home buyers being up by 2.5 per cent," said Ms Welling.
"Investor numbers were down by 11 per cent."
MS Wellings told WILLIAMS MEDIA this reduction in investor numbers has actually helped the first home buyer get a foothold in the property market.
"First home buyers were pushed out by the investor market, but now they are taking advantage of the First Home Deposit Scheme and the low interest rates.
"When the borders are open again, we will most likely see a return of the investor."
On a final note Ms Welling said it should be noted though the Tasmanian market has been on a high for some time and a slowing in the market had already started to occur prior to this pandemic.
Similar to this:
House sales increase across Tasmania
Economic revival drives detached housing boom in Tasmania, says HIA
Sleek architecturally designed home with mountain views in Tasmania