Prospective homeowners lining up outside properties have become a common sight over the past five years, but a different type of buyer has surged in the past two years.
In Tasmania, many homes are going to mainland buyers who purchase the property after a quick video tour.
According to data released by the Real Estate Institute of Tasmania, interstate buyers have surged in the past two years.
In 2023, about 1000 homes were sold to mainland buyers; in 2025, that number rose to 2256.
Hobart, Launceston and Burnie all had more mainland buyers, despite rising interest rates and cost-of-living pressures.
Real Estate Institute of Tasmania's Russell Yaxley said Burnie had the largest increase, with mainland buyers up about 45 per cent since 2021, higher than the state average.
From 2023 to 2025, the number of homes purchased by mainland investors increased from 329 to 780 in Launceston (137 per cent), from 47 to 164 in Burnie (240 per cent) and from 483 to 854 (76 per cent).
Over a five-year period, the median dwelling price rose by $177,000 in Launceston to $660,097, and by $186,000 in Burnie to $538,128.
By comparison, Hobart's median dwelling price rose only about $20,000 to $885,162.
Launceston Harcourts real estate agent Jeremy Wilkinson said the interstate buyers he speaks to pick Launceston for the low buy-in cost and high rental yield.
Due to Launceston's low vacancy rates, 1.9 per cent in 2026, homes purchased for low amounts - compared to capital cities - can still be rented out for similar amounts as homes in major cities.
Mr Wilkinson said many newer builds sit on large blocks of land that can be subdivided or have a granny flat added, doubling rental yield.
He detailed a dramatic spike in interstate buyers over the past two years, saying he'd received hundreds of calls every day.
"Traditionally, investors are only 20 per cent of our market, I reckon we might have gone up to 60 per cent up until about two months ago," Mr Wilkinson said.
Mr Wilkinson said some interstate buyers send a buyer's agent who acts on their behalf, but most come through video walkthroughs of the property.
"They're not flying down," he said.
"Sometimes we get 20 offers on a property, and you're dealing with 20 different people that you've probably never talked to before, and negotiating deals.
"It has made it interesting."
Mr Wilkinson said other agents had a similar experience.
Tasmania experienced its largest decrease in interstate activity in 2023, following 13 successive interest rate rises.
"This was the fastest tightening cycle in RBA history," Mr Yaxley said.
"It's no surprise the more discretionary, price-sensitive end of the market pulled back hardest."
Mr Wilkinson and Mr Yaxley both said there are early signs that interstate interest is dying down.
Mr Wilkinson said his 100 calls a day dropped to 50 as soon as the federal government announced its overhaul of the capital gains tax(CGT) and negative gearing systems.
"It was as if it happened overnight; the phone stopped ringing," he said.
Mr Wilkinson said this was likely due to changes in federal government investment, as well as to the rising cost of homes.
He said many homes in the north have shot up by about $100,000 or more in the past two years, and investors are now parking their money in Melbourne and Sydney, waiting for a big growth spike.
