Property Info > TASMANIA PROPERTY
Tasmania has emerged from the global financial crisis as Australia’s new economic leader. It has gained residents and its construction of new homes is increasing while the bigger states’ economies suffer a collapse in both housing and job markets. CommSec Economic’s State of the State rankings for this month (Nov ’09) placed Tasmania at the top of the economic pile.
HOBART offers the great Australian dream, with more affordable houses than any other capital city. The median value in Hobart is $340,500. Launceston has a median of $260,000 and rental yields at just over 5%. (NAB RP Data, Oct 09)
Courtesy of Information
and Land Services,
Department of Primary
Industries and Water
Ian Graham, chief executive of QBE LMI said the outlook was particularly good for first home buyers who have recently joined the housing ladder, and should also lure more investors back to the market.
"The surge in first home buyer demand is now slowly permeating through to greater demand from up-graders who are trading over to their next dwelling after selling to the buoyant first home buyer market," he said.
"The strong rental environment and stabilisation of prices is also beginning to attract investors back into the market."
Activity from both groups should pick up over the remaining months of 2009 heading into 2010, said Mr Graham, propelling demand next year and picking up the slack in first time buyer demand after the First Home Owner Grant ends in December.
“The medium term outlook heading into 2010 remains relatively solid.” Paul Braddick – Head of Financial Analysis, ANZ Bank. “Tasmania 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.”
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 yields 5%-7%
- low 2% vacancy rate
For investors looking for a balance of growth and yield, property priced up to around the $300,000 range is providing the best value for money. The top performing areas still are located within 5-15km of the main population centres such as Hobart and Launceston. Over the long term they are most likely to provide you with stronger growth, greater stability, high rental demand, secure rental yields and less risk.
Closer to the CBD and inner city, there continues to be strong demand for property with prices from around $400,000. 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 and Launceston are very 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, Hobart 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. There are a number of significant tourism and economic 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.
There is still very strong demand for rental properties with low vacancy rates in both Hobart and Launceston of around 2%.
Investors can expect to achieve gross yields of around 5-6 per cent with the right property. 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 SEPTEMBER 2009 – REIT | |||||||
| Top Ten | Most Affordable | Highest Turnover | |||||
| BATTERY POINT | $752,500 | CAMPBELL TOWN | $149,000 | DEVONPORT | $253,000 | ||
| SANDY BAY | $600,000 | CLARENDON VALE | $150,000 | KINGSTON | $365,000 | ||
| ACTON PARK | $540,000 | GAGEBROOK | $155,000 | SANDY BAY | $600,000 | ||
| GRINDELWALD | $485,000 | KING ISLAND | $157,500 | BLACKMANS BAY | $393,000 | ||
| TAROONA | $460,000 | MAYFIELD | $158,000 | GLENORCHY | $266,000 | ||
| MOUNT STUART | $450,000 | BRIDGEWATER | $163,125 | HOWRAH | $348,000 | ||
| BICHENO | $445,000 | WAVERLEY | $168,000 | SOUTH LAUNCESTON | $285,000 | ||
| MOUNT NELSON | $440,000 | GEORGE TOWN | $171,250 | CLAREMONT | $243,000 | ||
| SOUTH HOBART | $407,500 | RAVENSWOOD | $173,000 | NEWNHAM | $255,000 | ||
| BLACKSTONE HEIGHTS | $400,000 | PRIMROSE SANDS | $175,000 | NEWSTEAD | $315,000 | ||
| 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.)