Tasmania’s property strength defies national market slow dow - John McGrath

It was encouraging to read this month’s data for Tasmania’s property market, with the Apple Isle’s quiet achievements continuing even as the national sector slows. Compared to Melbourne, Sydney and Canberra, Hobart, Launceston and Devonport have performed quite strongly in the past year, and especially the past quarter.

Cotality’s Home Value Index (HVI) found Hobart’s $756,951 dwelling median followed a 1.4% monthly uptick in July – second only to Darwin’s 2.4% - while its annual values increased 9.3%. This amounts to only a 0.7% drop from Hobart’s price peak of $731,849 in March 2022.

The HVI also noted that the city’s annual rental growth of 8% was the third highest in the country, after Darwin and Perth, as was its 4.3% gross rental yield.

Growth in Tasmania’s regions, including Launceston and Devonport, has been significant too. The HVI showed Launceston’s $598,000-$675,000 dwelling median has seen a 12% to 15% increase over the year. In Devonport, 12% annual growth has taken the city’s average to $618,000.

These three cities are undergoing, or planning, plenty of billion-dollar infrastructure projects as well, with Tasmania’s building and construction pipeline alone now worth almost $40 billion.

The completion of a $200 million terminal expansion development at Hobart Airport is expected in early 2028, with the latest stage – a new arrivals area – opening to passengers last month.

Construction also began last month on Hobart’s new $1.13 billion, 23,000-seat stadium at Macquarie Point.

Major infrastructure works at Devonport include the $493 million QuayLink project. It is planned the first stage of the project will be wrapped up by October, to allow the city to accommodate two new and larger, Spirit of Tasmania vessels in time for summer.

In Launceston, the $130 redevelopment of the University of Tasmania (UTAS) Stadium is well underway and a $43 million update of the 115-year-old Princess Theatre and adjacent Earl Arts Centre also began this year.

Tasmania’s tourism numbers, and spending, continue to grow as well with Tourism Tasmania’s latest data showing visitor numbers reached a record 1.4 million in the year to March. This is up 4.8% from the previous year, and included an exceptionally high number of interstate tourists, while visitor spending figures increased 7.8% to $3.8 billion.

As we head towards Spring, and the overall property market continues to change, I believe Tasmania’s property market will experience further upsides. Recent strong growth on top of affordable values plus a quiet city lifestyle ensure Hobart, Launceston and Devonport will appeal to a range of buyers.