The Apple Isle is making economic strides, strengthening confidence in the market’s long-term prospects
Hobart is looking to sustain another year as a strong performer in the national property market, and appears to be succeeding quite well.
“Tourism, education, agriculture and advanced manufacturing continue to go from strength to strength. The most recent ABS data shows Tasmania leading Australia in wage growth and being second to Victoria in retail trade,” says Simon Pressley, MD and head of research at Propertyology.
“Right across the state, a range of new and upgraded tourism projects are indicative of Tasmania’s transformation. There are also airport expansions in Hobart and Launceston and unprecedented investment in universities, hospitals and new hotels.”
Hobart’s continued rising star has captured more and more attention from mainland residents who are drawn by the promise of its lifestyle, affordability and job market. Record-high interstate migration levels have led to a higher demand for homes. Available stock on the market is flying off the shelves, helped by the low price tags.
“The popularity of Airbnb has added immense pressure to rental stock, such that Hobart’s vacancy rate has been at an all-time Australian capital city record low for about 18 months,” Pressley says.
With a performance like this, it’s no wonder confidence in Tasmania’s prospects remains high.
A hub for education
Aside from tourism, Tassie is putting a very strong focus on the academic sector. According to CoreLogic’s Cordell Construction Monthly report for November 2018, the University of Tasmania’s (UTAS’s) $50m student accommodation project In Hobart has received the go signal. This will involve construction of 189 apartments in a 14-storey complex.
These efforts haven’t been limited to Hobart, as Launceston is boasting its biggest planned project in cooperation with UTAS.
“UTAS hopes to create Australia’s first university town, like those commonly found in the US and the UK,” explains Henry Fields, property research and acquisitions coordinator at Research Property Real Estate.
“The federal, state and local governments have a vested interest in seeing this project through, given Northern Tasmania is one of the poorest, lowest-education-level regions in the nation.”
With the development set to happen in the Invermay area, properties are selling like hotcakes here, with some getting snapped up within hours.
SUBURB TO WATCH
NEW NORFOLK: Historic suburb shows remarkable growth trend
A suburb that boasts incredible yields, New Norfolk not only generates average rental returns of 7% and 6% on house and units, respectively, but its property market has also recorded a high rate of growth in the 12 months to November 2018.
The house market reported nearly 20% growth in this period, continuing a trend of exceptional growth over the past fi ve years. Units are also extremely popular, with sellers able to unload such dwellings at no discount.
Located on the River Derwent, New Norfolk is the third-oldest settlement in the Apple Isle. The suburb is famous for cultivating hops, and it supplies many of the country’s breweries. It also has a traditional village square.
Yield: New Norfolk boasts very high yields, which hit 6–7% in the year to November 2018
Agriculture: The suburb is known for supplying the hops used in many of Australia’s beers
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