Tasmania's Launceston and North East region recorded the highest growth rate amongst all regional areas, according to the CoreLogic Regional Review.
Launceston and North East remained the top-performing region over the April 2020 quarter, securing the top spot for the second consecutive three-month period.
Over the three months to April, house prices in the region grew by 7.1%, while unit values went up by 13.6%. These figures were on an annual basis.
"Launceston and North East Tasmania have unsurprisingly seen an uplift due to a spillover of demand from Hobart, and a bullish sentiment towards Tasmanian property markets," said Eliza Owen, head of research at CoreLogic.
However, Owen said it is crucial to note that since the growth rates are on an annual basis, it captures much of the demand prior to the onset of the COVID-19 outbreak.
Sales figures reflect the impacts of the outbreak on Launceston and North East, with house sales declining by 11.3% and unit take-ups dropping by 9.5%.
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Looking at the sales data for the April 2020 quarter, the most popular homes in the region have a median price range of $200,000 to $400,000. On average, houses stay on the market for 33 days, while units remain for 34 days before they get sold.
"This could represent a reversal of the housing demand dynamics we've observed over the past few years," Owen said.
In terms of sales volumes, the Southern Highlands and Shoalhaven region in New South Wales recorded the highest gains take-ups at 21.6% for houses and 11.5% for units.
Ballarat in Victoria outpaced Launceston and North East in terms of average days on market. It takes only 30 days for homes in Ballarat to get sold.
The table below shows the best- and worst-performing regional markets:
