By Herron Todd White
February 2020

Hobart/Launceston/Regional Property Updates

Overall Tassie’s housing market remained the star performer nationwide in 2019 with six of the top 10 suburbs all coming from the apple isle. Many regions achieved above 10 percent growth and much of the state was above five percent.

So what of 2020?

Simply due to the strength in the local economy, population growth, near nil vacancy rates in the rental market and ongoing housing shortage, we feel that 2020 will deliver continued growth, a steady market in Hobart and we remain positive with regard to overall pricing.

The outer ring lower socio economic suburbs such as Bridgewater and Gagebrook have recently led the capital growth path. We would expect this to slow a touch as some realism comes back into the market. Middle and inner ring suburbs continue to experience firm demand conditions and upward pressure on pricing. We expect this to be ongoing.

In the north, Launceston was one of the standouts in 2019 with solid growth through all price segments and most locations. Continued expansion of the tourism sector (yes, there is a crane in the sky), the impending commencement of the next stage of the university campus (sod to be turned in January 2022) and a generally buoyant outlook would suggest that 2020 will be no different.

The north-west coast and west coast regions continue to have their own economic challenges and in some regions, continue to struggle, especially the mining based townships along the west coast. We are expecting Devonport to continue its momentum of 2019. Burnie has no doubt turned the corner with a continuation of improved conditions during 2019. We expect both these major centres to continue upward in 2020.

The areas to watch for this year

Climate change is now one of the main drivers attracting people to migrate to the state. Look out for the coastal towns, especially those that offer medical or nearby medical facilities such as St Helens (has medical facilities) & Orford (one hour from Hobart). We are expecting to see the sea change and climate change effect continue, especially from Queensland and Western Australia as buyers seek to relocate to a milder climate. Cashing in the interstate family home, buying a very nice holding on the Tassie coast and having money left over in the bank to play with – what more could you want?

Wishing all our readers the best for 2020.

Speak with a Hobart and a Launceston Mortgage Broker today.

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