Buyer wave surging in high demand areas

Sold: No.64 Rosehill Crs, Lenah Valley was sold in less than a week for $1.15m. Picture: Supplied

Demand is rising across the state with homebuyers and investors targeting specific suburbs.

New PropTrack data shows skyrocketing interest in Tasmania’s northern suburbs, headlined by Burnie suburb Acton, alongside East Devonport and Ravenswood.

In these areas, the number of key inquiries per house listing has shot up throughout the past year.

Acton’s inquiries were up by an eye-popping 123 per cent, while East Devonport grew by 84 per cent and Launceston suburb Ravenswood climbed 81 per cent higher.

Buyers hunting for units are on the uptick in the south of the state, where North Hobart and Sorell’s markets experience a 68 per cent increase, followed by New Town (57 per cent), and Glenorchy (51 per cent).

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Key inquiries is a measure used to gauge the level of buyer demand in an area combining high-intent actions such as emailing an inquiry, calling the agent or downloading documents.

For houses, the suburbs with the highest total number of key inquiries per listing were historic Evandale with 37, just ahead of Battery Point, Glenorchy and Taroona – each with 36. A stitch behind again was Kingston Beach with 35.

Hobart city units created the most buzz with 28 inquiries, ahead of New Town, Bellerive, Battery Point, and Sandy Bay, ranging from 25 to 27 apiece.

Eleanor Creagh from REA Group.

REA Group senior economist Eleanor Creagh said a rise in inquiries was a sign buyer demand and competition was increasing, potentially leading to higher prices.

When more buyers are competing for each property, this heightened competition typically places upward pressure on prices, Ms Creagh said.

“While not a guarantee, sustained increases in inquiries per listing often foreshadow increased competition and potentially price growth in those markets,” she said.

South Property Group principal Nick Cowley said demand is increasing all over Hobart and Tasmania.

He said his agency saw “a huge uplift in August”.

“Demand has been unprecedented, with several open homes reminiscent of peak Covid trading periods,” he said.

“A lot of properties are not making it to a Saturday open home.

Nick Cowley, principal of South Property Group

“We had a property in New Town sold in just three days with five offers and 17 groups attending a midweek lunchtime open house.

“Another property, in Claremont, attracted a dozen groups, five offers, and it was sold in four days.

“In Howrah, we had 37 groups come to a Saturday inspection, and that property was sold within a week and with six competing offers.

“Each of these homes was sold in excess of the listing price.”

The demand hasn’t only been limited to the $600,000 range, Mr Cowley said.

“It continues into the $1m-plus market with properties like No.64 Rosehill Crs in Lenah Valley selling in less than a week. It attracted 27 groups to inspect it and five written offers,” he said.

No.2 Fern Ct, Claremont sold for above it’s listed price. Picture: Supplied

Mr Cowley said the shift in the market was clear.

“Consistent feedback from active buyers is that interest rates are heading in the right direction, and they are looking to purchase in the market now before potential sale prices increase over the next 12 months,” he said.

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