The sales performance of heritage-listed properties:
A Tasmanian study: 2008
Background
Heritage Tasmania completed a study of the sale-price performance of heritage listed residential
properties.
Tasmania has many buildings and places with heritage value, a large number of which are
privately owned. The impact of heritage listing on resale value is a common concern for
prospective buyers.
Interstate and overseas research shows that, like any property, the value of a heritage-listed
property will be affected by a range of factors including size, location, trends in the real estate
market cycle and the quality and maintenance of the property.
This study aims to clarify the situation in Tasmania with regards the impact of heritage listing on
property values.
Study design
The study involved:

A comparison of the price performance of all heritage-listed residential properties in
Devonport, Burnie and Ulverstone over a 17 year period from April 1991 – June 2008.

A comparison of the price performance of a random sample of heritage-listed properties in
Launceston and Hobart over a 23 year period from April 1985 – June 2008.
Table 1 details the number of properties for which sales performance was compared, based on
locality.
For each property the last sale prices from LIST were compared with the Real Estate Institute’s
(REIT) Monthly Median Sales Price for Houses, kindly supplied by the REIT. The REIT data
provided a measure of the median property price per month for Ulverstone, Burnie Devonport,
Launceston and Hobart.
The REIT data covered the period from April 85 – June 2008 for Hobart and Launceston. For
Ulverstone, Burnie and Devonport, the REIT data commenced from April 91. The gaps in REIT
information limited the comparative analysis, although only slightly.
Locality
Ulverstone
Burnie
Devonport
Launceston
Hobart
Total
No of properties
19
9
20
50
50
148
Table 1: number of heritage-listed properties by locality for which sales performance measured
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Results
In general, the sales performance of heritage-listed property was more positive than the median
sales performance in each of the five localities (see Table 2).
Available comparative data in Ulverstone, Burnie and Devonport limited the comparative
analysis. In addition, there are very few residential properties in these localities which are
permanently entered in the Tasmanian Heritage Register, further limiting the available
comparative data.
In Ulverstone sales performance prices for only19 of the 66 heritage-listed residential properties
was available. Of these 19 properties, only 3 experienced a negative down-turn in sales
performance, with REIT monthly median sales prices showing a similar downturn for two out of
three of those months. In general, however, the properties exhibited an 85% increase in property
value (median), compared with 47% of all property sales in the comparable months (see Table
2).
In Burnie, only 10 residential properties are permanently entered on the Tasmanian Heritage
Register. Nine of these properties have had recent sales, with only 2 experiencing a negative
down-turn in sales, replicating the general movement in sales as provided by REIT Monthly
Median Sales Prices. The 9 properties exhibited a median increase in property value of 47%,
compared with 15% of all property sales in the comparable months (see Table 2).
In Devonport, sales data was available for 20 of the 69 permanently listed places in the
Tasmanian Heritage Register. Of these, only 2 properties experienced a down-turn in sales
performance. This was not comparable with the positive returns experienced in general in
Devonport at that time. The 20 properties exhibited a median increase in property value of 141%,
compared with 63% of all property sales in the comparable months (see Table 2).
In Launceston and Hobart, the sales performance of only a random selection of permanently
listed residential properties was examined.
In Launceston, the 50 properties examined were sampled from High Street / Wellman Street,
Inveresk, Invermay, Trevallyn and central Launceston. The sample included modest houses
through to larger residences. The 50 properties exhibited a median increase in property value of
59%, compared with 32% of all property sales in the comparable months (see Table 2). Only two
properties experienced a down-turn in sales performance, both replicating minor downturns in the
market (REIT Monthly Median Sales Price data).
In Hobart, the 50 properties examined were samples from Battery Point, Sandy Bay, West
Hobart, North Hobart and South Hobart. Again, the sample included modest houses through to
larger residences. Sourcing sales performance was difficult for places within Battery Point given
the lower turn over of properties in that suburb. The 50 properties exhibited a median increase in
property value of 84%, compared with 67% of all property sales in the comparable months (see
Table 2). Only two properties experienced a down-turn in sales performance, which was
inconsistent with the general market movement at that time (REIT Monthly Median Sales Price
data).
Locality
Ulverstone
Burnie
Devonport
Launceston
Hobart
Median sales performance
heritage listed properties (%)
85
47
141
59
84
Median sales performance
all properties (%)
47
15
63
32
67
Table 2: Sales performance of heritage-listed properties by locality compared with median monthly sales prices by
locality (REIT Monthly Median Sales Price data).
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A second comparison was undertaken to determine the shift in sales price of the heritage-listed
properties against the shift in median sales prices of all properties for the same period. The
results of this comparison more clearly show the variable nature of sales performance on
heritage-listed properties.
The median difference in sales performance was positive across all localities except Ulverstone,
which showed a -1% downturn in the increase of property values of heritage-listed properties
compared with the increase of property values for all properties in Ulverstone for the same period
(see Table 3).
Locality
Ulverstone
Burnie
Devonport
Launceston
Hobart
Median increase / decrease
in property values
-1
26
14
11
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Table 3: Comparison of shift in sales prices of heritage-listed properties against the shift in median sales prices of all
properties for the same period (REIT Monthly Median Sales Price data).
An examination of performance against each locality provides a different perspective. At each
locality, a number of properties exhibited ‘poor performance’ compared with the market trends at
that time. ‘Poor performance’ was defined as having more than a 10% decrease in monthly
median sales prices for the exact same period.
Looking at each locality, in Ulverstone, 7 out of 19 heritage-listed properties performed poorly
compared with the market trends at that time. In Devonport, 4 of the 20 heritage-listed properties
performed poorly. In Burnie, only 1 out of the 9 properties performed poorly compared with the
market trends at the time (see Table 4).
Similar trends were seen for Launceston and Hobart. In Launceston, 10 of the 50 properties
examined had poor sales performance compared with the market trends at that time. In Hobart,
19 of the 50 properties examined had poor sales performance compared with the market trends
at that time (see Table 4).
Locality
Ulverstone
Burnie
Devonport
Launceston
Hobart
No. of properties
performing poorly
7
1
4
10
19
41
% of properties examined
37
11
20
20
38
28
Table 4: Number of properties per locality for which sales performance was greater than 10% lower than monthly
median sales price for the locality at that time (REIT Monthly Median Sales Price data).
Discussion
The analysis conducted and outcomes generated provide an indication only of the impact of
heritage listing on the sale performance of properties.
In general heritage-listed properties perform well compared with monthly median sales figures.
For each locality, the median sales price of heritage-listed properties was greater than the
median sale price for all properties in the same time period.
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Looking more closely at individual movements, 28 per cent of properties across Ulverstone,
Burnie, Devonport, Launceston and Hobart experienced ‘poor sales performance’ compared with
all sales at that time. ‘Poor performance’ was defined as having more than a 10% decrease in
monthly median sales prices for the exact same period.
The results however are not statistically significant for a number of reasons:

Given the low levels of sales movement across heritage properties and the comparatively
small number of residential properties which are permanently registered in the Tasmanian
Heritage Register, the results cannot be construed as being statistically relevant.

Where properties exhibited a significant negative down-turn in sales performance it is
impossible to determine whether the poor sales performance resulted from heritage listing
in itself or some other factor, eg poor maintenance, significant damage through fire or flood,
or the need for a quick sale for personal reasons.

Similarly, where significant increases in sales performances were exhibited it is impossible
to determine whether the sales performance was affected by other factors such as
modernisation of amenities or additions to the residence.

Individual properties also caused spikes in the data. For example, the sales price for a
property in Ulverstone in February 2006 was 11 times higher than the monthly median
sales price. By the time the same property sold in December 07, it doubled in value.
However across Ulverstone, median house prices had risen 15 times in the same period.
Without more detailed analysis of each property and the reasons behind sales performance, it is
impossible to provide conclusive evidence one way or the other whether heritage-listing impacts
on sales performance.
The results are consistent with interstate and international research. Like any property, property
value is affected by a range of factors including size, location, trends in the real estate market
cycle and the quality and maintenance of the property. A suburb by suburb analysis of sales
performance may reveal a different picture. For example, it is likely to highlight the positive sales
performance in areas such as Battery Point, top end of Davey Street Hobart, and the Launceston
precincts such as High Street and Wellman Street.
Examining random samples in Hobart and Launceston may have provided a different snapshot.
However, as indicated earlier, an analysis of these precincts showed limited movement in the
market.
Summary
Heritage Tasmania completed a study of the sale-price performance of heritage listed residential
properties.
The study involved a comparison of the price performance of all heritage-listed residential
properties in Devonport (n=20), Burnie (n=9) and Ulverstone (n=19) over a 17 year period from
April 1991 – June 2008, and in a random sample of heritage-listed properties in Launceston
(n=50) and Hobart (n=50) over a 23 year period from April 1985 – June 2008.
In general heritage-listed properties perform well compared with monthly median sales figures.
For each locality, the median sales price of heritage-listed properties was greater than the
median sale price for all properties in the same time period.
The smallest positive trend was for Hobart, showing a median of 3% greater increase in sales
performance compared with all other properties in the same period. Launceston and Devonport
showed similar results, with 11% and 14% increases respectively. Burnie exhibited the highest
with a 26% greater increase in sales performance compared with all properties in Burnie for the
same period. Ulverstone was the only locality to show a downturn – though at 1% it cannot be
considered significant.
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Looking more closely at individual movements, 28 per cent of properties across Ulverstone,
Burnie, Devonport, Launceston and Hobart experienced ‘poor sales performance’ compared with
all sales at that time. ‘Poor performance’ was defined as having more than a 10% decrease in
monthly median sales prices for the exact same period.
The results are not, however statistically relevant given the small sample size resulting from low
turnover of heritage-listed properties. The inability to determine reasons for sales performance
including additions, restorations, damage or poor maintenance, or the need for fast sales for
personal reasons can provide only a basic analysis of the data.
Heritage Tasmania will continue the research to ensure up-to-date and valid information can be
provided to address these limitations.
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