Tasmania March 2018

The month in review: Tasmania

By Herron Todd White
March 2018

Hobart

Hobart’s middle ring has certainly out performed the Australian Winter Olympic rings this year, taking gold for the nation’s capital growth!

Many suburbs such as Berriedale, Rosetta, Montrose on the western shore; and Rokeby and Oakdowns on the eastern shore, have achieved over ten percent growth. Housing is still available sub $400,000 in all these locations.

Those western shore suburbs mentioned above are all well serviced by the Glenorchy CBD, while the eastern shore has the Eastlands and surrounding precinct. That said, the daily commute is very much on the agenda with the morning drive to the CBD from both areas a somewhat slow process (by Tassie standards).

Rental vacancy rates remain below two percent, which in effect is near full. Recently in Kingston, a rental open home for a typical three bedroom, one bathroom dwelling with an asking rent of $350 per attracted 28 applications! Further, gross yields around 5.5% would be typical.

Moving ahead, we expect the rental market to remain tight (thanks Airbnb) with upward pressure on rental levels. The housing price boom is also not yet expected to slow, subject to external factors.

Launceston

In the north, the middle ring is typically those suburbs such as Summerhill, Kings Meadows, Mowbray, not withstanding the ring is somewhat smaller in Launceston. In the first two of these suburbs good solid housing is still readily available sub $300,000, while in the latter, sub $250,000.

Typical yields for a stand alone house would gross six percent. For both Kings Meadows and Summerhill capital growth around 10 percent has been achieved over the last 12 months. There is a word of caution for Mowbray however, as the impending relocation of the Tasmania University Campus is likely to drag many tenants from the suburb to the CBD and Invermay.

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