The month in review: Tasmania
By Herron Todd White
Hobart and Launceston
Continuing improvements in Tasmania’s economic trends (for example, an unemployment rate equivalent to levels recorded in 2011 with the rate more closely aligned to national unemployment levels) bodes well for an optimistic economic outlook.
The $30,000 grant commenced in November 2013 and was reduced to $20,000 from 1 January 2015. Land prices in some subdivisions across the state have seen increases which could be attributed to developers capitalising on the FHBB market.
Higher sales volumes of residential vacant land on Hobart’s eastern shore particularly in Old Beach, Sorrell and Howrah would indicate it is popular with first home builders. Vacant blocks in Old Beach and Howrah have been purchased from $70,000 and up to $170,000 for larger parcels. In Sorrell which is a longer commute to the city, parcels of land have been purchased within the range of $95,000 to $175,000. Brighton, a northern suburb of Hobart located approximately 27 kilometres from the city centre has also experienced higher volumes of vacant land sales. It is an affordable suburb with vacant land sale prices starting from $55,000.
Residential land sale volumes over the past twelve months in the state’s north-west have been strongest in regions near to the Mersey River in the townships of Latrobe and Spreyton, the popular north-west holiday spots of Port Sorell and Shearwater and the largest population centres, Devonport and Burnie. During the past year in Latrobe single residential blocks have sold from $65,000 with larger lifestyle blocks selling up to $200,000. In the Port Sorell and Shearwater areas single residential blocks have sold from $85,000 with larger lifestyle blocks selling up to $220,000. In the Burnie area single residential blocks have sold from $24,000 with acreage selling for $300,000.
In Tasmania’s north the adjoining suburbs of Riverside and Legana which overlook the Tamar River, St Leonards and the satellite villages of Hadspen and Perth are areas where the largest volumes of vacant residential land sales have occurred during the past year. Residential vacant land prices in Riverside and Legana range from $70,000 for a single block up to $265,000 for larger, lifestyle blocks. Prices achieved in Perth over this same period range from $80,000 for single residential blocks to $145,000 for larger blocks, while in Hadspen sales have occurred from $90,000 up to $145,000.
The scheduled, staged reduction of the FHBB in June 2015 is a potential pitfall for the first home buyer segment, vacant land sales and the construction industry.