The month in review: Tasmania
By Herron Todd White
The most common projects within the greater Hobart region appear to be renovation and townhouse and villa unit developments.
The majority of renovation projects appear to be within the suburbs of Moonah, Lenah Valley, New Town, Mount Nelson, West Hobart, Bellerive, Lindisfarne and Geilston Bay. Townhouse and villa unit developments are spread throughout the greater Hobart region with the main developments being the construction of an additional dwelling at the rear of a property.
In regard to townhouse and villa unit developments the major consideration or rule to consider is the building envelope size requirement which differs from council to council. Contact with local council is advisable prior to purchasing a property with the intent to construct an additional dwelling or dwellings in order to determine if there will be any restrictions.
Buy in price ranges from $250,000 to $395,000 mostly within Moonah, Lindisfarne and Geilston Bay and $395,000 to $500,000 within Lenah Valley, New Town, Mount Nelson, West Hobart and Bellerive.
The market appears to be steady within the greater Hobart region with prices on the rise. Selling periods appear to be quicker as buyer demand appears to outweigh current stock levels. Interest from interstate buyers has increased with many properties with development potential subject to council approval being sold within the first few weeks.
Novices should stay away from larger subdivision developments as they can be quite costly and without a sound understanding and past experience with this type of development the costs involved can quickly accumulate. There also appears to be a large number of new blocks available for sale which have been part of new subdivision developments within the past 12 months. The selling period for the newly developed blocks appears to be within a 6 to 12 month period which would not be ideal for a developer financing a large portion of the development as they would be relying on a quick selling period in order to recoup the initial development costs.
Find out more information and to chat with a local Mortgage Broker in Tasmania.