Tasmania December 2017

The month in review: Tasmania

By Herron Todd White
December 2017

Well we all but nailed it! Last February we suggested continued population growth would persist in placing upward pressure on pricing in both Hobart and Launceston. What we did not pick was the strength of the resurgence.

The overall upswing in the general economy, especially growing retail sales figures, strong tourism and continued falling unemployment, gave an end result greater than predicted growth in both of the two major cities and also recovery and capital growth in many other regional areas including Devonport.

Hobart was the stand out performer, up 13% year on year overall and higher in many inner ring suburbs. The stand out sale was a $6.5 million transaction for a dual title river front holding on Sandy Bay Road.

Many interstate investors and SMSFs are active in this market. With the popularity of Airbnb, many holdings that would otherwise have been available to the permanent rental market are now not; vacancy rates are at near zero, especially inner city. We thus have rising rentals, rising capital growth and returns still around 5%.

Holiday coastal townships are also now back in favour. Historic favourites such as Orford, Bicheno, Coles Bay, St Helens and Binalong Bay along the east coast have had agents smiling again.

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