Tasmania February 2017

The Smartline Report – February Edition

The month in review: Tasmania

By Herron Todd White
February 2017

Some economic commentators are forecasting increased growth in the property market throughout the greater Hobart and Launceston regions. Hobart in particular has the tightest vacancy rates in the country, a more controlled housing supply pipeline and increased migration and tourism, and is on track to be Australia’s best performing capital city property market in 2017.

Buyer’s agents have reported an increased interest in the property market throughout the greater Hobart region and have observed first hand growth of 8% to 10% from January to December 2016. Some of the buyer’s agents are predicting buyer activity further intensifying and forcing stronger growth throughout 2017.

The strong population growth in Tasmania has been reported to be the main driver behind the performance of the Hobart housing market.

Should the increased interstate migration and booming tourism levels continue we believe this will continue to create stronger growth throughout not only 2017 but also for the next few years.

Recent reports in the media have mentioned that due to the increase in tourism throughout the state, many investors are purchasing properties to be used for short term holiday accommodation as they are able to offer competitive accommodation rates which in some cases offer a greater return compared to long term rental accommodation.

Many local real estate agents throughout the greater Hobart region have reported a shortage of stock which is driving shorter selling periods and higher sale prices as demand continues to outweigh supply. 2017 may be the year we see an increase in properties going to auction due to many properties having multiple offers only a few days after being listed. Taking properties to auction may increase the sales price achieved as it will allow further time for interested parties to discuss their options prior to rushing in with an offer in fear of missing out had the property not been offered for auction.

Throughout the greater Hobart and Launceston regions centrally located suburbs that contain a good range of facilities, larger infrastructure such as shopping centres, educational and health institutions and public transport tend to be popular with renters and purchasers alike and are viewed as having the best capital growth potential.

Southern Region
Within the greater Hobart region the suburbs worth watching are Moonah, Glenorchy and Berriedale which are all suburbs within a 15 kilometre drive of the Hobart CBD. Within the $300,000 to $400,000 range a larger family home can be purchased in these areas consisting of 3- to 4-bedrooms and in most cases being constructed of brick veneer with lockup garages. The size of the houses within this price range would be between 140 and 240 square metres and the land size would range from 500 to 900 square metres. Kingston is another suburb worth watching throughout the year. Kingston is located on the southern outskirts of Hobart in the fast growing municipality of Kingborough. While residents of Kingston have a longer commute to the city, it is a fast growing, well-serviced suburb located between Hobart and the Huon Valley. The median sale price based on recent sales in this suburb was $388,000. For this price in Kingston you could expect to purchase an older style 160 square metre home on just under 700 square metres of land.

Northern Region
In the north of the state, Newstead is a popular suburb to keep an eye on. Newstead is an established residential suburb of Launceston located approximately three and a half kilometres from Launceston’s centre and is popular with families due to its proximity to the city and its facilities.

The median sale price based on recent sales in this suburb was $325,000. For a touch above the median price at $340,000, you could expect to purchase an older style, 140 square metre house on just under 600 square metres of land.

North West Region
The Devonport region is the largest population centre in Tasmania’s north west and is located approximately 100 kilometres north-west of Launceston. The median price of recent sales was $227,000, for which you could expect to buy an older style, 150 square metre house in Devonport on a block just under 800 square metres.

Find out more information and to chat with a local Mortgage Broker in Tasmania.

www.smartline.com.au

Please note that information in this publication is subject to change without notice. Smartline assumes no responsibility for any errors, omissions or mistakes in this document. © Smartline Home Loans P/L 1999 – 2016. Australian Credit Licence Number 385325

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DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.