Strong employment figures for Tasmania continue to fuel local buyer confidence and a positive outlook for property.
A jump in the total number of Tasmanians employed over the 12 months to March 2009 has encouraged local buyers to continue purchasing property in the state.
Tony Collidge, principal of PRDnationwide Hobart says the security provided by a growing job market has been the key factor underpinning the local economy in tough times. A significant infrastructure investment by the state and federal government has provided nearly 30% of all jobs created in Tasmania.
"We haven't got a lot of large businesses with international exposure and this limits significant job losses in the current climate," he says. "The stability of local jobs, the affordability of property and the conservative nature of Tasmanians, means that they tend to buy and invest locally, and this helps strengthen our industry and property market."
The latest Real Estate Institute of Tasmania Property Focus showed that 78% of total sales achieved across the March quarter were made by local Tasmanians. Only 12% of total sales in the same period came from interstate buyers.
The number of investors in the Tasmanian marketplace dropped by 1% during the March quarter to 11%; however the overall number of sales made by investors increased by 202. According to Collidge, the majority of these investors were also locals.
"If interstate sales are only 12% of total sales and 11% of all buyers are investors, this indicates that almost 90% of investors are locals," he says.
Collidge says the number of local investors is only going to rise, as global economic conditions improve.
"Once we come out of the recession we're supposed to be in, everything looks positive that Tasmanian properties will gain in capital growth and property prices will increase," Collidge says. "That means there is the opportunity to obtain good growth as well as good yields and returns on your investment property."
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