TASSIE’S MOST EXPENSIVE SUBURBS REVEALED

The Real Estate Institute of Tasmania released its March quarter report in June, and there were some interesting takeaways. First home buyer activity took a noticeable dip, recording one of the weaker quarters in the past three years. 196 first home buyers got into the market, which is 40 fewer than the previous quarter and 24 fewer than this time last year. Investor activity also dropped across southern Tasmania. There were 35 fewer transactions compared to the previous quarter, and 32 fewer than a year ago. Mainland investors still made up a big slice of the action, accounting for 42% of all investor purchases with 40 sales.

Richmond claimed the top spot as the most expensive suburb in Tasmania, with a median price of $1.66 million. Sandy Bay followed at $1.24 million, then Kingston Beach at $1.225 million, Taroona at $970,000 and West Hobart close behind at $960,000. At the more affordable end, was Gagebrook ($395,000), White Beach ($415,000), Bridgewater ($420,000), Clarendon Vale ($437,200), and Risdon Vale ($445,000). Kingston led the way with the most sales, at 41, followed by Glenorchy and Sandy Bay with 29 each, and New Norfolk not far behind on 28. And if you’re renting, you may have felt it, as median weekly rents went up by $10 over the quarter.

ANNUAL INCOME REQUIRED DOUBLED The annual income required to purchase a home in Hobart has doubled over the past five years, jumping from $67,546 in 2020 to $131,698 in June 2025, according to financial comparison site Canstar. This rise contributes to home ownership being increasingly out of reach for many Tasmanians, as wages struggle to keep pace. Figures from the Australian Bureau of Statistics show that the average weekly earnings for full-time adult workers in Tasmania rose from $1,711 in 2020 to $1,975 by November 2024. That translates to an annual income increase from $88,972 to $102,700, which is short of what’s now needed to buy a home in the state’s capital. Canstar based its data on the Reserve Bank of Australia’s lending rate for new borrowers. The figures do not include stamp duty or any potential concessions available to homebuyers.

MORTGATE REPAYMENTS STEADY IN TASSIE Mortgage repayments have remained steady for Tasmanian households over the past quarter. According to the latest Housing Affordability Report from the Real Estate Institute of Australia (REIA), households in Tassie were putting 43.4 percent of their income towards home loan repayments. That’s only a 0.1 percent improvement on the December quarter. Nationally, though, affordability has increased a bit more. For the first time in over a year, housing affordability has shown signs of easing, with the proportion of median family income needed to cover average loan repayments dropping to 48.0 percent, a two percent improvement. REIA President, Leanne Pilkington, said it’s “the greatest quarterly improvement in housing affordability since the March quarter 2016.” Every state and territory saw some level of improvement, except the Northern Territory, with Tasmania recording the smallest gain. While the uptick is a welcome change, Ms Pilkington cautioned that “it’s too early to declare a full-scale recovery in affordability,” pointing out that steady interest rates and continued wage growth will be crucial to keeping things moving.

PROPERTY LENS

17 Swan Point Esplanade, Swan Point

Indicative price: $1.075 Million – $1.2 Million

Agent: Mellissa Sarich, The Agency

Address available on request, Evandale

Indicative price: Expression of Interest

Agent: Danny Thomas and Elizabeth Doyle, LAWD

40 Welman Street, Launceston

Indicative price: Expression of Interest

Agent: George Bushby and Joscelyn Bushby, Bushby Creese