Tasmania June 2018

The month in review: Tasmania

By Herron Todd White
June 2018

Hobart

Hobart continues to lead the nation’s capitals with regard to residential capital growth and rental growth. Indicators suggest some suburbs (not just inner city but also those lying in the middle band such as Montrose and Oakdowns) may approach 10% capital growth for the first six months this calendar year. A recent rental affordability survey had Hobart as the least affordable city for rents in the nation with 29% of average income required to pay a median rent (Sydney was next at 27%), however it should be noted that incomes on average are well below the larger mainland cities.

Both the house and unit markets continued to be fueled by a lack of stock to the market. Agents are reporting reduced listing opportunities with one of the better-performing agents telling me this week he had not had a listing opportunity in over a week.

For the second half of the year, we envisage continued upward pressure on both rents and house and unit pricing but suggest there may be a cooling effect to some degree.

As we enter the winter months with less tourism, some of the Airbnb housing stock should be released to the market which could ease the rental stress/ shortage being experienced.

Launceston

Launceston is a similar story to the state’s capital, with strong capital growth also approaching 10% for the six months in some suburbs (the stand out is South Launceston), sub 2% vacancy rates and stock shortages to the market especially in suburbs such as South and West Launceston.

On the north-west coast, Devonport continues to enjoy a recovery in pricing and Burnie has lifted itself off the floor and is starting to follow the other main centres in an upward trajectory