Are there any affordable houses left in Tasmania?

Homes on Australia’s Apple Isle can still be plucked for less than the Sydney median house price back in 2000 – with a handful of regions outside Hobart still boasting a median of less than $400,000.

Despite house prices shooting up by 50 per cent across key pockets of Tasmania’s state capital last year, the latest Domain House Price Report showed medians in George Town – just near the island’s second-biggest city of Launceston – are a friendly $370,000, with Burnie in the north proffering a modest median of $390,000.

Further afield, a house on the remote and blustery West Coast can be picked up for just $172,500 – and that’s despite house prices soaring by more than 21 per cent over the 12 months leading up to March.

SOLD - $170,000

57 Conlan Street, Queenstown TAS 7467

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Sydney’s median house price in 2000, on the other hand, was just over $300,000, according to the Australian Bureau of Statistics.

Unfortunately the cheap-as-chips housing trend across many parts of Tasmania doesn’t extend to Hobart anymore.

Five years ago, Hobart’s median house price was just $388,998. It now stands at a record $758,141 on Domain data.

Fuelled by tree-changers and investors, prices have risen by 46 per cent – or $241,152 – since the onset of Covid in March 2020.

Expressions of Interest

205 Davey Street, South Hobart TAS 7004

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The median house price then rose a further 4.3 per cent over the March quarter of 2022 to reach a record $758,141 – which sparked fears the entire state would become as out of reach as a prized head of iceberg lettuce.

But the mass migration of mainlanders seems to have finally closed to a crawl, with most out-of-state property shoppers steering clear of Tasmania’s regional gems, experts say.

“We haven’t seen a lot of mainlanders buying in our market,” said Harcourts Signature Northern Suburbs agent Damien Hollingsworth.

“So, while the northern suburbs of Hobart in general have seem some good capital growth, it’s the most affordable place to be buying in the market … it’s 90 per cent local buyers here.

“And we probably won’t see that change either.

SOLD - $490,000

26 Salier Street, Bridgewater TAS 7030

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“I think the market has hit the top and it’s very stable now … and you still get a four-bedroom house – such as 26 Salier Street, Bridgewater – for under $500,000.”

According to Domain data, the median house price in Bridgewater – which sits in Greater Hobart’s north – is just $380,000.

In the north east of Launceston, house medians are just $460,000, despite annual growth of 9.5 per cent.

Richard Bailey, of Bushby Property Group, said while prices in parts of the Launceston market doubled over the past year, up-and-coming suburbs such as Mowbray still plated up great properties for under $500,000.

SOLD - $375,000

40 Anne Street, George Town TAS 7253

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“There’s some really good value in a couple of towns that are in that 30-minute radius to Launceston too, such as Perth and George Town,” he said.

“In George Town, it went right off [during the pandemic] and prices all but doubled, but you can still buy a decent house there for $350,000.”

Domain listings show there are 19 houses currently for sale in George Town for less than $400,000, including 105 Agnes Street, which is being marketed as “offers over $289,000”.

SOLD - $272,000

105 Agnes Street, George Town TAS 7253

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“There are still many regional parts of Tasmania and even Australia that are fair value,” Bailey said.

Further north again, in the seaside region of Burnie/Ulverstone, house medians climbed 6.5 per cent annually to $417,500 after lifestyle buyers ditched “the big smoke” for some crisp air and coastal views, Roberts Real Estate Ulverstone agent Amanda Roberts said, adding that bargains still abounded.

“There are still a lot of affordable options in Ulverstone and we are attracting interstate buyers and also locals from regional areas from Tasmania such as the Huon area and Hobart because of that affordability and also because of the lifestyle,” she said. “They are sick of city living.

SOLD - $450,000

100 Leven Street, Ulverstone TAS 7315

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“The ability to remote work has had a big impact here and I think the market will stay strong because there’s room to grow. 

“We are particularly seeing a large demand for lifestyle properties with people want to come from the city for that little bit of acreage … and there are a lot of people who want to come to Tassie to be self-sustaining.”

Roberts listed 100 Leven Street, Ulverstone, as a great-value buy that’s attracting strong interest from lifestyle-home hunters.

The four-bedroom house is being marketed for offers over $500,000, and boasts a 1060-square-metre parcel of land.