Tasmania Property Market Update July 2019

Hobart/Launceston Property Updates

There is very limited stock sub $500,000 in the inner Hobart region.

The property boom has lifted most houses out of this price segment, however there have been recent examples of units selling under this price threshold.

For example, a modern one-bedroom strata just sold for $410,000 at 209 Sandy Bay Road and a three-bedroom upper level strata just sold for $440,000 at 217 Liverpool Street.

With inner Hobart’s median pricing just having passed the $490,000 price threshold (that’s above both Adelaide and Perth!) the search for affordable housing takes you to the middle ring and outer ring suburbs. For example, in Berriedale you can still purchase a neat three-bedroom, one-bathroom house for just above the $300,000 mark while in Howrah, a sought-after suburb on the eastern shore a 1970s style brick three-bedroom, one-bathroom high set dwelling with double garage under at 1 Lara Street just sold for $462,000.

The housing shortage, as we have discussed previously, has left Hobart with a virtual nil vacancy rate with rents now accounting for a greater percentage of the average wage than in Sydney! Using the Howrah property as an example, we would expect a gross return of around 4.5 per cent if that were to be placed in the rental pool.

Gross yields above 6.5 per cent are being achieved in some of the lower socio-economic suburbs such as Bridgewater and Gagebrook.

We have seen post the federal election a return to the market of mainland investors.

In the north of the state, Launceston still offers affordable buying with a median house price of $475,000 within the inner-city region. An example is 55 Upton Street which just sold for $662,000 being a three-bedroom two-bathroom weatherboard home with off street parking just a stone’s throw from the CBD.

In essence, under $350,000 will buy you a renovated three-bedroom, one or two-bathroom brick home in an established, solid residential suburb such as Summerhill. For example, 73

Stanley Street just sold for $310,000 being a low set modern three-bedroom, one-bathroom dwelling with detached garage. Investors would expect a gross yield of between five and six per cent for such a location. Those who took this advice last year would have enjoyed a capital return upwards of ten per cent to boot!

Speak with a Hobart and a Launceston Mortgage Broker today.