Northern suburbs a hot spot for house sales, led by the strength of Glenorchy's market
THERE are many ways to judge how a property market is travelling, from median price rises, to days on the market, to vendor discounts.
However, perhaps the most pure statistic of them all is the number of sales.
Each month CoreLogic RP Data releases to the Mercury an update on how every suburb in Tasmania is travelling.
And every month for a year and change Glenorchy has been the suburb with the most sales in the South of the state.
It is only eclipsed by Devonport in the North.
In CoreLogic’s November Market Trends report, which includes figures for the 12 months to August, there were 202 houses sold in Glenorchy.
Kingston (176), Howrah (153), Sandy Bay (148) and Claremont (144) rounded out the South’s top five busiest suburbs for sales.
Over that period Glenorchy recorded the best home value growth of these five suburbs at 14 per cent, closely followed by Sandy Bay (13.3 per cent) and Howrah (12.2 per cent).
Patrick Berry, manager at 4one4 Real Estate, said Glenorchy attracted a mix of families, first-home buyers and investors, all looking to purchase within the area because it offers every desirable service.
It also has the added bonus of being only a 10-minute drive to Hobart’s CBD.
“When you compare it to other suburbs within that short of a drive, the median price is a lot more affordable in Glenorchy than other areas,” Mr Berry said.
“For investors, they are able to achieve between 6.5 per cent and 7.5 per cent returns, which for a lot of interstate investors is huge — that seems to drive them.
“As for families, I believe it’s the lifestyle that is on offer in Glenorchy at an affordable price which allows a lot of people to move out of rentals into their own home more easily.”
He said while prices had definitely gone up recently, it was still possible to find reasonably priced properties throughout Glenorchy, especially when compared with Hobart and its surrounding suburbs.
A Glenorchy home at 227-229 Tolosa Street will be sold by St Andrews Estate Agents by expressions of interest.
St Andrews Estate Agents director Steve Yannarakis said that for many years Glenorchy had been in the “doldrums”, but he believes it is now “playing catch-up” in terms of price growth and volumes.
“Interstate investors see a value proposition, underpinned by robust investment fundamentals: strong potential for capital growth [off a low base] and excellent rental returns,” Mr Yannarakis said.
“This mirrors what occurred in the 2001 to 2004 boom, where prices in Glenorchy doubled within a very short period of time.
“Owner-occupier locals are also acquiring property as the ripple effect of capital growth — which started in the inner suburbs and spread out — is now reaching the northern suburbs.”
LJ Hooker Glenorchy sales and marketing specialist Marc Lester said a part of the high number of sales was the fact that it is such a large suburb.
“In regard to attracting buyers, Glenorchy still offers great value for money, with the median property price being around $300,000,” Mr Lester said.
“Prices have certainly gone up like the rest of the greater Hobart market, but in comparison to the inner city it is still very affordable."