Median house prices in Launceston have increased by 23.8 per cent to $470,000 over the past year, latest data from the Real Estate Institute of Tasmania shows.
In its quarterly report, the institute noted there was a record $4.46 billion in real estate sales in Tasmania over 12 months until September.
Sales in 2021 were up by 15.8 per cent on the previous year and values were up by 18.7 per cent.
The median price for a Tasmanian home in September was $520,000 at an increase of 7.4 per cent over 12 months. According to the institute, increasing property prices have resulted in reduced investment levels.
Mainland buyer numbers increased to 1653 from 1051 last year, but only represented 18.1 per cent of sales.
Sales to investors were up by 36.5 per cent compared to last year, but represented 19 per cent of all sales.
The institute said sales to investors needed to exceed 25 per cent of all sales for rental shortages to be addressed and pressure on rental asking prices to be alleviated. The quarterly report shows rental vacancy rates are between 0.8 to 1.2 per cent across the state.
In Launceston, a three-bedroom home cost on average $420 a week to rent and a two-bedroom home cost $335.
Real Estate Institute of Tasmania president Michael Walsh said strong buyer demand and a severe lack of supply was being experienced by each Australian capital city.
"Low interest rates, improving economic conditions and an opening up of the borders will continue to see demand for property in this state grow," he said.
"We clearly need to find avenues to release the pressure that has been placed on the rental and sales markets by seeking the government's help to look for ways to expediently create more rental properties and building more established homes for sale."