News

3 minutes reading time (507 words)

A look at the Hobart property market

A look at the Hobart property market

By SIMON PRESSLEY

While other so-called experts were berating Tasmania’s basket-case economy, Propertyology published a property market report in December 2013 wherein we said we had ‘an open mind on Hobart’.

Subsequent economic and property data suggests the tide is turning in Tasmania.

Tasmania’s woes began in 2010. On top of the post-GFC economic shock, which had a widespread impact, one of Tasmania’s key industries, forestry (22 per cent of Tasmania’s land area is forest) came to a halt as a result of increasing pressure from environmentalists over land use intensified.

The resultant uncertainty over proposed legislation changes lead to a significant reduction in demand from foreign buyers following Tasmanian job losses.

Unemployment rates accelerated. Population growth ceased to exist. The years from 2010 through to 2014 could be best described as a basket case.

UnemploymentRate_2015.04-300x192-1

In March 2014, a 16-year reign of the then state government ended. The change produced a renewed spring in the step of Taswegians.

PopulationGrowth_2004-2014-300x192-1

Data from CoreLogic RP Data suggests that property sales have increased in each of Tasmania’s biggest local government authorities – Clarence, Devonport, Glenorchy, Hobart and Launceston.

Tasmania’s unemployment rate has come back in line with the Australian average again.

PropertyMarket_1990-2014-300x159-1

The economic strengths of Tasmania are three-fold:

Tourism: Its natural attractions and world-class arts and culture enable Tasmania to be a highly desirable tourism destination with a unique offering. The Museum of Old and New Art (MONA) opened in 2011 and is the main reason for a significant increase in recent visitor numbers. There is also an abundance of unique tourist attractions that haven’t previously been promoted very well. In early 2014, Lonely Planet nominated Tasmania one of the Top 10 locations in the world to visit. Education: Hobart is a knowledge-based service centre (education, science and research) with a growing international reputation in the areas of health, information technology and Antarctic science. Manufacturing: It produces a diverse range of goods (mostly agricultural products, milk powder, dairy products, beer, whiskey, wine, meat products, seafood products, forestry products and mineral products) with $7 billion exported annually to mainland Australia and internationally. With fertile land, and pure air and water, there’s scope to scale up production of packaged food and take advantage of Asia’s food bowl demands.

Population growth is still the slowest of all Australian states. Property prices have still managed to hold firm because new housing supply has been controlled.

PropertySales_2012-2015.02-1-620x330

There is to more to Tasmania than the capital city of Hobart. It’s very much an export state, with exports representing 65 per cent of Tasmania’s trade and distributed through its ports, including Burnie (minerals and timber), Devonport (wheat, cement, fertilisers), Bell Bay – Launceston (minerals, fuels, timber products, food) and Hobart (cruise ships, navy vessels and Antarctic supply vessels).

About Simon Pressley

Simon Pressley is managing director of Propertyology, an REIA Hall of Fame inductee, property market analyst, accredited property investment adviser and buyers' agent. Propertyology works exclusively with property investors to purchase properties in strategically chosen locations all over Australia.


Fatal error: Call to undefined function article_series() in /home/apimagaz/public_html/wp-content/themes/jarida-child-theme/single.php on line 166
Original author: Simon Pressley
Industrial strength
Land tax – the good, the bad and the ugly
 

Comments

No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Guest
Monday, 21 October 2019
If you'd like to register, please fill in the username, password and name fields.

Top Articles

Random Posts

Translate Site

Company

LINKTOSALE.COM.AU PTY.LTD.
ABN: 77 626 273 050
Perth, WA 6036

Subscribe To Our Newsletter

0
Shares
Cron Job Starts