Launceston’s Trifecta Of Factors? (Sorry Hobart, we’re taking your “credit”)

“Tasmania’s better economic news is feeding better news on population growth – which is itself feedback back into better news for the states economy,” – Deloitte Access Economics Business Outlook Report

Whilst all the national media’s attention is on Hobart, as reported by Erin Cooper for ABC News the same trifecta that drove Sydney’s house prices North in the past 2 years, is very similar to growth in Hobart currently… however, these statements are very reflective in Launceston as well.

Rising rents and returns

Launceston is seeing very low rental vacancy rates, mixed with rising residential rental prices and the competition through short-term accommodation such as AirBnb. Factor in a shortage of residential properties to purchase and this is pushing more buyers to consider a new home construction to occupy or as an investment through depreciation benefits. Thus, creating more local jobs and activity in the local community.

Confidence breeds confidence

“Tasmania’s better economic news is feeding better news on population growth – which is itself feedback back into better news for the states economy,” – Deloitte Access Economics Business Outlook Report

The above statement couldn’t be more true, confidence builds more confidence, and through the rapid rise in confidence and interest throughout the Greater Hobart market, we are now seeing buyers considering Launceston as they have been “outpriced” of the Hobart market for a similar lifestyle (less the traffic congestion!). In Launceston, $500,000 buys you a quality home within close proximity to the CBD, whilst being close to commute to mainland states such as VIC & NSW.

Commercial construction

“Commercial construction across Tasmania has also helped fuel the economic fire and has outperformed other sectors”Deloitte Access Economics Business Outlook Report

Within Launceston, this is evident through both Government and Private Enterprise projects currently underway or in the pipeline

  • Silo’s Hotel re-development, green space and footbridge
  • University of Tasmania re-development at Inveresk
  • CH Smith re-development
  • Launceston Airport upgrade
  • Brisbane St mall re-development
  • JAC Group TRC Hotel
  • New highway and redirection through Breadalbane, Perth & Longford

Based on the above, I predict by the end of 2018/early 2019 we will see a greater focus on Launceston as an alternative to Hobart to invest and reside, especially at our current medium price point. With such confidence in Launceston as a city of choice by both local and interstate buyers, the future is bright and much to look forward to once these projects are completed and the economy continues to strengthen.

Article by Josh Hart

Josh is one of Tasmania’s leading real estate agents with more than $220 million of sales to his name. He is known for his pioneering approach to real estate marketing which marries traditional methods such as print and signboard with disruptive new technologies, including digital and social media. This approach helped One Agency Launceston ta… Read more

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