By Herron Todd White
September 2019

Hobart/Launceston Property Updates

Tasmania is enjoying steady, albiet not outstanding, population growth of 1.24%. A far cry from 2012 when the population actually shrank by 0.57%

So, what are the pull factors driving this?

Firstly, a stronger economy. Tasmania is now ranked third in the Commsec State of the States. Good tourism numbers, building activity, real estate activity and general confidence have created an environment in which businesses are having the confidence to invest and expand. A statistic that might be surprising to some is that of all the employment classifications, professionals at 18.5% make up the largest employment group in the state, well in advance of technicians and trades workers, next best at 14.8%.

Secondly, the state is seeing population migration due to real or imagined climate change effects. People are simply relocating from Queensland and Western Australia because it is too hot! Net inflow for the December 2018 quarter was 568 persons. In this category are also placed former residents returning to the state now that there are employment opportunities available.

Thirdly, overseas migration. The green, clean perception of Tasmania together with a stronger economy are attracting overseas residents. Net inflow was 686 persons in the December 2018 quarter.

So where are these people going? Hobart (including the cities of Glenorchy and Clarence) together with Launceston in the north are attracting virtually all the newcomers. This has placed housing pressure on these markets, especially Hobart. The end result is the double-digit growth the regions have enjoyed over more recent years.

Housing affordability is becoming more of an issue. Inner-city Hobart is priced out of many potential purchasers means with its median house price now above Adelaide. The median and outer ring suburbs however still provide affordable housing and are still enjoying solid capital growth.

Speak with a Hobart and a Launceston Mortgage Broker today.

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