The Smartline Report – October Edition

The month in review: Tasmania

By Herron Todd White
October 2016

Within the greater Hobart region the most favoured price point among buyers at present is within the $300,000 to $400,000 range with the majority of sales coming from the middle Hobart suburbs. Home buyers at this price point in these mid suburbs include up-graders and downsizers along with some investors. The majority of recent sales and listings within this price bracket came from Howrah, Kingston, Lutana and Moonah, all of which are within a 15 kilometre radius of Hobart’s centre.

Within this price range in Howrah you would typically be able to purchase a smaller sized, approximately 125 square metres of living area, modern home or a larger (from 175 square metres) older style home. In Kingston, to the south west of Hobart and the most rapidly growing area within the greater Hobart region, you can expect to pick up an older style home offering 140 to 180 square metres of living area for between $350,000 and $400,000.

For those who prefer unit living, in Kingston for between $300,000 and $350,000, a 2- to 3-bedroom unit with a living area of around 100 to 130 square metres can be purchased within one of the newer subdivisions.

The $300,000 to $400,000 range is mostly favoured throughout Moonah and Lutana due to the attractive rental return for investors. Typically an older style, 3- or 4-bedroom home in original condition can be purchased at around $350,000 and could be expected to achieve a gross yield between 4.5% to 6%.

In the north of the state the most favoured price point among buyers appears to be within the $250,000 to $350,000 price range. South Launceston, West Launceston, Newstead and Invermay have recorded multiple sales within the past few months in this price range.

An older style, renovated home offering between 100 and 150 square metres of living area in west or south Launceston can be picked up within this $250,000 to $350,000 bracket. For the same price range in Newstead you can get an older style home in original condition with a living area ranging between 120 and 180 square metres. All of these suburbs are within two to four kilometres of Launceston’s centre.

The north and north-west of the state have a similar demographic of purchasers within their respective favoured buyer price points. Second home buyers appear to be in the majority and are either upsizing or downsizing.

North-west Tasmania is seeing a favoured price point within the $200,000 to $300,000 range. Devonport, East Devonport, Sheffield and Port Sorell have had a relatively stronger presence for both sales and listings.

Recently in Devonport and East Devonport purchases of modern or renovated homes that offer 125 to 200 square metres of living area have been made within this price bracket.

Both the north and north-west of the state paint a similar picture for investors as that of the south with gross yields of between 5% to 6% being achieved.

Throughout Tasmania the slowest price point appears to be within the $100,000 to $170,000 range.

The majority of properties within this range in the south can be found in Clarendon Vale, Bridgewater, and Gagebrook all of which are within approximately 30 kilometres or a 30 minute commute to the Hobart CBD. These properties are mostly single level, brick veneer, 3-bedroom, 1-bathroom houses ranging from 90 to 120 square metres of living area and were previously state housing.

Buyers within this range are often investors looking for a strong rental return with rents ranging between $200 and $300 per week. Many of these homes require repairs prior to being made available for rent. Due to required repairs these homes generally have extended selling periods and do not appear to be in strong demand.

Rocherlea and Waverley are suburbs in the north where similar types of properties are available for purchase but demand is likewise limited. Whilst these suburbs offer low barriers of entry and good gross yields for investors their potential for future capital growth should also be considered.


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.