By Daryll Timms AAPI

Tasmania’s residential real estate markets have shown mixed results in the first half of 2010.

Some figures suggest Tasmania’s median dwelling value has grown in excess of 10 percent this year, while others report a decline in values across the State. This disparity between findings is due largely to a significant drop in sales volumes, which have resulted in an equally significant jump in stock levels. But in reality, while trends show a notable decline in purchase activity, prices in most markets have remained relatively stable.

Reports suggesting an increase in the median value are a result of strong equity in Tasmania’s top end and prestige property markets, which are lifting the State’s median. Conversely, the lower end property segment, classified as the mortgage belt areas and driven in recent times by first home buyers, has all but ceased.

The current market, favourable to purchasers, has resulted in buyers reticent to part with funds unless convinced of a bargain buy. Subsequently, this has lead to a slight reduction in values in some areas with high stock levels.

Established buyers, representing Tasmania’s middle market, are also cautious at present, choosing to purchase budget properties and reduce debt rather than overextend themselves by upgrading.

Coastal lifestyle area Devonport has witnessed some activity in recent times. Reportedly Tasmania’s number one suburb for turnover in March, Devonport has witnessed virtually no movement in property values.

Northern Hobart suburb Glenorchy, however, has witnessed some increase. Offering the basic ‘bread and butter’ homes, Glenorchy is a working class suburb popular with investors and first home buyers due to strong affordability.

Premier suburb Sandy Bay has also remained stable despite reports from REIT that the area has witnessed a significant drop in the suburb’s median house price.

The mixed results for Tasmania show that outlying suburbs are likely to continue to suffer hardship resulting from low levels of demand, with affordable inner city areas with good access to Hobart continuing to perform best.

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