Property Info > TASMANIA PROPERTY
The Tasmanian economy has been humming along at a solid pace in recent years, with the manufacturing sector underpinning stable growth. House prices continue to steadily increase and according to the recent ANZ Property Outlook, this growth is anticipated to continue into 2009 with a stimulatory state budget along with recent surge in immigration and population growth supporting the economy.
“The medium term outlook heading into 2009 remains relatively solid.” Paul Braddick – Head of Financial Analysis, ANZ Bank.
Courtesy of Information
and Land Services,
Department of Primary
Industries and Water
The state still offers some of the best value property in the country for any buyer. The good rental returns and low vacancy rates also provide an appealing attraction for savvy investors.
Following many years of slow growth, the period from 2002-2004 saw Hobart’s median house price jumped more than 100%. Similar growth occurred across most of the state. Steady growth along with excellent rental yields continues to this day
Investors from around Australia had eventually ‘discovered’ the lowest cost housing in the nation and enjoyed some fantastic capital growth and high yields. Property prices have steadily increased in recent years and are now beginning to stabilise with more moderate growth expected over the medium term. There are still excellent buying opportunities for both home buyers and investors. The demand for rental properties is going to increase and for investors particularly, you just need to know the best places to look for high rental yields and predicted growth.
Features of Tasmanian property includes:
- lowest capital city house prices in Australia
- growth last 10 years of 10%-12% per annum
- healthy residential yield up to around 7%
- low 2% vacancy rate
For investors looking for a balance of growth and yield in $170,000 – $260,000 price range, the best areas still are located within 5-15km of the main population centres such as Hobart and Launceston.
Closer to the CBD, property priced up to around $350,000 is still very popular with steady increases having been achieved over recent years. Higher prices will be paid for property with additional features such as increased house size, higher quality, water view, location, large land component, or if there is scope to value add or improve dwellings on the land.
The inner suburbs of Hobart, including Battery Point, Sandy Bay, North Hobart and West Hobart, are still popular and achieving steady to moderate growth. Properties having both water and mountain views are in high demand. There have been some recent sales in Battery Point that have achieved well in excess of $2m.
Tasmania is not immune to the coastal lifestyle push that is occurring right around the country and significant numbers of people are investing in well priced coastal properties offering stunning ocean and mountain views. For example Orford, about 80km from Hobart on the east coast, is expected to benefit from a new residential estate surrounding a Greg Norman-designed golf course. House prices will start from about $250,000, but better quality homes can achieve up to $600,000 to $700,000. There are a number of significant tourism projects underway in the state which is sure to impact on property values in the coming years.
Rental Market
Returns on investment (yield and rental income) can range across the state and trends indicate that good to moderate returns can be expected in the long term.
The rental market is quite strong in most parts of the state. For example Hobart's rental market remains with strong for good rental properties. Three bedroom houses attract a median rent of $280 per week (REIT). In the market above $300 per week, there is sufficient supply with the CBD remaining a sought-after area for renters. Two-bedroom units attract a median rent of around $210 per week.
Investors can still achieve gross yields of 8 per cent or net yields of 6 per cent with the right property (The Rental Centre). REIT's data puts the rental yield for both houses and units a little under 5 per cent.
The tables below show a snapshot of medium prices over the past few years in selected locations across the state.
| MEDIAN HOUSE PRICES AS OF THE QUARTER ENDING JUNE 2008 – REIT | |||||||
| Top Ten | Most Affordable | Highest Turnover | |||||
| BATTERY POINT | $840,000 | GAGEBROOK | $157,750 | DEVONPORT | $223,000 | ||
| SANDY BAY | $610,000 | RAVENSWOOD | $159,000 | BURNIE | $226,500 | ||
| ROSNY | $475,000 | RAILTON | $168,000 | SANDY BAY | $610,000 | ||
| MOUNT STUART | $451,500 | GEORGE TOWN | $169,000 | KINGSTON | $327,500 | ||
| SANDFORD | $432,500 | GEEVESTON | $169,500 | NEWSTEAD | $298,000 | ||
| LINDISFARNE | $430,000 | SMITHTON | $170,000 | HOWRAH | $370,000 | ||
| BLACKMANS BAY | $425,000 | PRIMROSE SANDS | $177,750 | ULVERSTONE | $230,000 | ||
| LEGANA | $411,500 | ROKEBY | $185,000 | RIVERSIDE | $291,750 | ||
| SOUTH ARM | $409,000 | MOWBRAY | $187,500 | GLENORCHY | $235,000 | ||
| ROSE BAY | $405,000 | BRIDGEWATER | $189,500 | MOONAH | $256,000 | ||
| MEDIAN HOUSE PRICES AS OF THE QUARTER ENDING JUNE 2006 – REIT | |||||||
| Top Ten | Most Affordable | Highest Turnover | |||||
| BATTERY POINT | $580,000 | ROSEBERY | $61,000 | GLENORCHY | $205,000 | ||
| HOBART CITY | $565,000 | QUEENSTOWN | $76,500 | BURNIE | $180,000 | ||
| TOLMANS HILL | $550,000 | WAVERLEY | $118,850 | ULVERSTONE | $210,000 | ||
| SANDY BAY | $520,000 | MAYFIELD | $120,000 | KINGSTON | $265,750 | ||
| TRANMERE | $500,000 | GAGEBROOK | $125,000 | DEVONPORT | $213,250 | ||
| ACTON PARK | $492,500 | CLARENDON VALE | $127,000 | CLAREMONT | $196,500 | ||
| HOWDEN | $410,000 | SMITHTON | $141,500 | SMITHTON | $141,500 | ||
| MOUNT NELSON | $402,000 | BRIDGEWATER | $144,000 | PROSPECT | $260,000 | ||
| ROSE BAY | $388,750 | ST MARYS | $144,000 | BLACKMANS BAY | $325,000 | ||
| SEVEN MILE BEACH | $380,000 | RAVENSWOOD | $144,250 | MARGATE | $343,000 | ||
| MEDIAN HOUSE PRICES AS OF THE QUARTER ENDING JUNE 2004 – REIT | |||||||
| Top Ten | Most Affordable | Highest Turnover | |||||
| ACTON PARK | $562,000 | QUEENSTOWN | $36,000 | DEVONPORT | $169,750 | ||
| BATTERY POINT | $500,000 | ROSEBERY | $42,000 | CLAREMONT | $165,000 | ||
| SANDY BAY | $465,000 | GAGEBROOK | $105,000 | GLENORCHY | $186,500 | ||
| MOUNT NELSON | $384,975 | RAVENSWOOD | $110,000 | SANDY BAY | $465,000 | ||
| MOUNT STUART | $347,500 | RISDON VALE | $115,000 | KINGSTON | $270,000 | ||
| EAST LAUNCESTON | $325,000 | GEORGE TOWN | $117,000 | BURNIE | $136,500 | ||
| LEGANA | $321,000 | SMITHTON | $122,000 | ULVERSTONE | $165,000 | ||
| BELLERIVE | $317,500 | PRIMROSE SANDS | $122,000 | QUEENSTOWN | $36,000 | ||
| BLACKMANS BAY | $310,000 | WAVERLEY | $127,500 | WEST HOBART | $309,750 | ||
| PORT SORELL | $310,000 | GEEVESTON | $132,50 | BLACKMANS BAY | $310,000 | ||
| MEDIAN HOUSE PRICES AS OF THE QUARTER ENDING JUNE 2002 – REIT | |||||||
| Top Ten | Most Affordable | Highest Turnover | |||||
| BATTERY POINT | $353,500 | QUEENSTOWN | $21,000 | BURNIE | $58,000 | ||
| SANDY BAY | $297,500 | GEORGE TOWN | $33,800 | GLENORCHY | $88,000 | ||
| ACTON PARK | $267,500 | RAVENSWOOD | $53,000 | DEVONPORT | $84,000 | ||
| ROSNY | $191,000 | ROKEBY | $57,000 | KINGSTON | $138,000 | ||
| WEST HOBART | $190,000 | BURNIE | $58,000 | ULVERSTONE | $80,000 | ||
| SANDFORD | $189,500 | INVERMAY | $63,500 | CLAREMONT | $86,300 | ||
| MARGATE | $185,500 | MOWBRAY | $73,000 | SANDY BAY | $297,500 | ||
| HOWRAH | $180,000 | KINGS MEADOWS | $74,000 | MOONAH | $91,000 | ||
| TAROONA | $173,000 | SOMERSET | $74,500 | INVERMAY | $63,500 | ||
| HOBART CITY | $167,000 | LONGFORD | $76,500 | PROSPECT | $138,300 | ||
(Courtesy of REIT. Full details available through the REIT.)