A study by Propertyology revealed that two capital cities and 14 Australian towns recorded home price growth of 700% or more over the past 25 years. The city of Burnie in Tasmania stood out as the fifth strongest growth market in Australia, with home prices rising by 785% since 2001, when the average price was $77,000, reaching $540,000 last year, according to the Real Estate Institute of Tasmania.
Alongside Brisbane, Hobart was ranked with Burnie and Launceston among the top-performing markets. Home prices increased by 750% in Launceston and 700% in Hobart. Burnie agency director Matt Grice described the current property market as “extremely hot,” pointing to rising investment activity, particularly in properties priced below $600,000, which are attracting multiple offers.
Executives at Jenrow confirmed the significant role of mainland investors and the collaboration between buyers’ agents and investors in driving demand. Prices have risen sharply this year due to limited inventory, and Burnie has experienced a notable growth surge, especially following the wave of “COVID buyers” from the state of Victoria five years ago.
Burnie is now considered one of the best investment locations thanks to its coastal setting, strong infrastructure, and the development of hospitals and upcoming economic projects. Simon Pressley of Propertyology noted that the average value of Australian homes increased from $210,000 to $1.18 million over the past quarter-century.
Pressley emphasized the importance of data analysis in understanding the factors that influence property growth and in identifying potential risks. He also suggested that many regions in Australia could achieve similar growth of around 700% over the next 25 years, despite the impact of economic and cyclical factors that may lead to alternating periods of slowdown and expansion.
