Property Info  > Best value property and house prices in Hobart and Launceston, Tasmania

Tasmanian offers some of the best value property in the country for the home buyer or savvy investor.

Property prices have remained relatively stable recently in the major population centres of Hobart and Launceston with a bit more volatility as you move out to rural or coastal towns. Hobart is still seen as an outstanding prospect when compared to the nation's capital cities. The city offers the great Australian dream with more affordable houses than any other capital city.

Recent demand and growth has levelled out but there are still good opportunities for buyers to secure well priced property.

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

For home buyers, the Tasmanian property market offers some of the most affordable and appealing life style opportunities in the country.

For investors, rental returns have stabilised with 5%-8% returns achievable in select areas. Vacancy rates in both Hobart and Launceston are also beginning to creep up to over 4% vacancy following many years with vacancy rate hovering at around 2%. Investors with a long term view are sourcing some excellent opportunities, but with anything, you just need to know the best places to look for high rental yields and predicted growth.

Features of Tasmanian property include:

  • lowest capital city house prices in Australia
  • healthy residential yields 5%-7%
  • vacancy rate at around 4%

Annualized growth from 2001 -2009 in Tasmania was 10%-12% per annum. Between 2010 and 2013 the state experienced a flat market with negative growth in selected areas. In 2014 the market started to pickup reflecting the improved economic conditions and substantial infrastructure investment, particularly in Hobart. Annualised growth projection for 2014 – 2016 is 3% to 5%, but buyers will still need to conduct thorough research in order to secure the right properties in the right areas to reap the rewards.

For investors looking for a balance of growth and yield, property priced up to around the $350,000 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. They are underpinned by a balanced economy and stable infrastructure and 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 $450,000. 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 continue to be attractive to buyers.

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, this is particularly so in the major population centres of Hobart and Launceston.

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.

There is still a reasonable demand for rental properties with vacancy rates in both Hobart and Launceston are presently at around 4%. For regional, rural and coastal area, investors can expect fluctuating demand and return on their rental property.

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 2014 -REIT
Top Ten     Most Affordable     Highest Turnover
BATTERY POINT $735,750 QUEENSTOWN $58,000 KINGSTON $380,000
SANDY BAY $640,000 BEAUTY POINT $122,700 DEVONPORT $238,500
NEW TOWN $535,000 GEORGE TOWN $153,000 HOWRAH $388,000
TAROONA $524,000 RAVENSWOOD $160,500 SANDY BAY $640,000
TRANMERE $495,000 RISDON VALE $171,000 LONGFORD $236,000
SEVEN MILE BEACH $490,500 BRIDGEWATER $180,000 LINDISFARNE $375,000
MOUNT NELSON $470,000 INVERMAY $186,000 NEWNHAM $240,000
WEST HOBART $458,500 NEW NORFOLK $196,500 GLENORCHY $250,500
BLACKMANS BAY $455,500 SMITHTON $205,000 WEST LAUNCESTON $285,750
SANDFORD $441,000 MOWBRAY $209,000 BELLERIVE $425,000

 

MEDIAN HOUSE PRICES AS OF THE QUARTER ENDING MARCH 2012 – REIT
Top Ten     Most Affordable     Highest Turnover
BATTERY POINT $925,000 QUEENSTOWN $90,000 DEVONPORT $240,000
TRANMERE $595,000 SMITHTON $170,000 HOWRAH $356,500
SANDY BAY $580,000 BRIDGEWATER $175,000 KINGSTON $375,000
MOUNT NELSON $550,000 RAVENSWOOD $177,500 SANDY BAY $580,000
BELLERIVE $518,000 SOMERSET $180,000 CLAREMONT $240,000
TAROONA $498,500 GEORGE TOWN $182,000 BLACKMANS BAY $425,000
WEST HOBART $475,000 RISDON VALE $183,000 NEWNHAM $265,000
NEW TOWN $454,500 BEAUTY POINT $207,000 RIVERSIDE $362,500
SANDFORD $448,500 NEW NORFOLK $210,000 TREVALLYN $269,750
MOUNT STUART $440,000 WYNYARD $210,000 GLENORCHY $271,000

 

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


(Courtesy of REIT. Full details available through the REIT.)