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)

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Courtesy of Information
and Land Services,
Department of Primary
Industries and Water

The Tasmanian economy has been progressing at a steady pace in recent years, with the manufacturing sector underpinning stable growth. House prices continue to increase and according to the recent ANZ Property Outlook, this growth is anticipated to continue into 2010 with a stimulatory state budget along with recent surge in immigration and population growth supporting the economy.

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.)