Tasmania a ‘desirable destination’ for sea changers

News Corp Australia Network

Inquiry from interstate-based buyers remains strong. Picture: Supplied

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WITH cooler demand and rising stock levels, where is the property market heading in 2023?

Members of the Real Estate Buyers Agents Association have weighed in, with many anticipating more buyers to surface in the second half of the year as the property market returns to a ‘new normal’ early in the year.

Samantha Spilsbury of Buyer’s Agents Tasmania said inquiry from interstate-based buyers remains strong.

“We have a lot of buyer inquiry from either retirees or young families making the move to Tasmania for the lifestyle, alongside minimal investor inquires in the last six months,” she said.

“We expect stock levels to increase at the start of the year.”

Samantha Spilsbury of Buyer’s Agents Tasmania.

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Ms Spilsbury said Tasmania is still seen as a desirable destination, especially for sea changers who purchase to move here to retire.

“Stock is relatively low throughout the state and properties are taking six to eight weeks to sell if priced right, which allows buyers more time to be pickier and negotiate better conditions and price with the vendor,” she said.

“Some vendors have high price expectations and will not budge on price and these properties do not sell and end up being removed from the market.”

REBAA president Cate Bakos said 2022’s interest rate hikes — with more expected this year — will take some of the energy out of the market, despite low stock levels in many capital city centres.

“We anticipate the second half of 2023 will see increased buyer energy as those buyers who have been waiting for the market to bottom will see that our cash rate reaches equilibrium and some level of certainty returns in respect of the RBA,” she said.

“We also envisage that investors will continue to be a new force as they enjoy the growing yields and the tight vacancy rates.”

Cate Bakos, president of Real Estate Buyers Agents Association of Australia.

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From a regional perspective, Ms Bakos said many buyers “are sitting in the wings”, letting the fear of overpaying outweigh the fear of missing out.

She said sales are happening slowly and any imperfect listings that are overpriced or needing renovations are “simply not selling”.

Ms Bakos said inner-city ring properties have been less affected by interest rises, with many vendors refusing to discount when they don’t have sell.

“Off-market sales are becoming increasingly more commonplace, especially in outlying locations where vendor expectations on price may be at odds with the slowing market,” she said.