WITH asking prices climbing and listing options dwindling, Tasmanian buyers are shopping in higher price brackets for a new home.
In exclusive data from realestate.com.au, there has been a substantial rise in the number of potential buyers searching in the $750,000 and $1 million price brackets over the past three years.
While the $500,000 range remains Tasmania’s largest price bracket, the number of home hunters in this range has dipped significantly.
In April 2019, 18 per cent of home searches were in the $750,000 bracket, but in April 2021 that percentage has shot up to 29 per cent, or almost one-third of all searches.
In the $1 million range, searches have grown from 9 per cent up to 16 per cent.
Meanwhile, the $500,000 range represented 56 per cent of searches in 2019 but has receded to 43 per cent this year.
Tasmania’s most affordable search, $250,000, has shrunk from 11 per cent to just 3 per cent.
The story was similar in greater Hobart with searches dropping from 5 per cent to just 1 per cent.
Most property searches in greater Hobart this year were in the $500,000 bracket (34 per cent in 2021, down from 50 per cent in 2019).
The $750,000 range grew to 31 per cent, which was up from 23 per cent, followed by $1 million searches (21 per cent, up from 14 per cent) and $1.5 million (7 per cent, up from 5 per cent).
There were also slight increases in the top end $2.5m, $3m and $3.5m price brackets.
Senior consultant Tony Dion said Petrusma Property agents had seen an inquiry increase in the more expensive price ranges, even in an environment where locals represent 85 per cent of all buyers.
“People are paying a premium for property with a good floor plan and condition,” he said.
“The market in the $700,000 to $1 million range has experienced growth and higher levels of buyer inquiry. This price bracket, in the current market, can still present good value for money.”
PRD Hobart director Tony Collidge said home value growth across Tasmania in recent years has resulted in buyers considering spending more on a home.
“Low interest rates and rapidly increasing prices would also account for a ‘bracket creep’, particularly over the past three years,” he said.
“Covid-19 changed a lot of things; people haven’t been able to spend their money as they would have pre-Covid but during and post the pandemic, people have looked to put their spare cash into property.”
Mr Dion said when buyers find their ideal home – with the right layout and in good order – they will pay for it.
“Either they have the money or they can borrow the money knowing the interest rate environment is highly likely to remain low,” he said.