The month in review: Tasmania property market updates
By Herron Todd White
Hobart and Launceston Property Updates
The Tassie real estate boom has certainly pushed up the price of land. Much has been said about the housing shortage, especially in and around Hobart. Put simply, a growing population needs more houses to live in.
So, where and what is available? Well, prices can vary greatly.
For example, north of the CBD in the medium ring suburb of Glenorchy, a good sized 888 square metre lot in Elliot Road just settled at $131,000. Closer to the CBD in the inner-city suburb of West Hobart, an 816 square metre lot in Stevens Farm Drive just settled for $332,000. Just a bit further out in Lenah Valley, an 813 square metre lot just sold for $198,000 and another 706 square metre parcel for $235,000 in Westinwood Road.
Want a cheapie? Believe it or not, a residential lot of 667 square metres just sold in Plymouth Road, Gagebrook for $51,500!
Moving forward we envisage ongoing low vacancy rates and a growing population will continue to place upward pressure on price levels.
Launceston in the north of the state tells a similar story albeit at a lower price point. A steeper sloping lot of 776 square metre just sold in Thrower Street, West Launceston for $101,000 while a larger 1,934 square metre lot in Deek Street, Kings Meadows sold for $166,000. Closer in, a 600 square metre lot sold in Ivy Lane, Newstead for $270,000.
Affordable land can be found in the commuter townships of Hadspen ($125,000), Longford ($110,000), Legana ($130,000) and Perth ($125,000).
Construction costs are typically higher in Tasmania compared to other regions of the country.
That said, project style homes are being built for around $1,500 per square metre of living (plus garages and decks etc) offering 170 to 180 square metres of living with four bedrooms, two bathrooms and double garaging. This can lift substantially with the involvement of an architect or project team with recent building contracts reflecting in excess of $3,000 per square metre for higher quality projects.
Generally, we find that land plus build cost is holding up favourably in the market state wide however as always this is tempered in the event the build cost is out of line.
There are a few examples of local building companies doing their own speculative building work actually bypassing Bunnings or a Melbourne-based distributor and importing building materials directly from China themselves. While requiring a bit more logistics, this approach can lead to more profit at the end of the project.
Speak with a Hobart Mortgage Broker today.