By Herron Todd White
Tasmania’s First Home Builders Grant (FHBG) of $20,000 together with the federal government’s additional contribution of $25,000 for new home construction pushed the demand for residential building blocks, therefore reducing supply and putting positive price pressures on any available stock.
The regional centre of New Norfolk has experienced a land sale spike following the opening of state and federal building grants. The sale of over 20 blocks of land in a month in 2020 is not uncommon, smashing the number of less than five in the same period in 2018. We saw prices for standard lots (600 to 700 square metres) rise from $75,000 in 2018 to $135,000 per lot.
Sales of vacant land in Brighton Estate have had strong growth over the past year with vacant allotments achieving resale prices in the vicinity of more than 10 to 15 per cent since 2017.
Newly released White Stone Point Estate in Austins Ferry, situated about 15 minutes from Hobart CBD, is comprised of approximately 208 residential building lots. Rorie Auld from Knight Frank Hobart reports that “demand for land particularly with good water views is very strong. Over 50 per cent of lots have been sold off the plan with prices varied between $150,000 and $250,000 in early 2020”. Stages 9 to 12 are currently under construction and have not yet been released, however there is a high degree of interest and enquiry received so far.
We also note that local builders have been increasing their construction quotes in response to government grants. Conversations with local builders have indicated that this may be due to a lack of qualified tradespeople and incidental increased labour costs.
Stephan Ning Liu
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