Tasmania Investor activity is expected to increase in the Hobart region. Ongoing low interest rates will also produce better yields, stronger returns as well as greater capital growth opportunities. It is the upgraders that will be the strongest growth sector across Tasmania, driven by the ongoing low interest rates and affordability, especially when looking to upsize their homes. In Hobart however, first home buyers are expexted to stop waiting for the bottom of the market and have confidence in purchasing. Upgraders will be particularly active on Tasmania’s West Coast/Burnie region. However, it is incumbent upon the state government to ensure the first home owners grants continue, for both established homes as well as new builds. Interest rates are expected to decrease, or remain unchanged over the coming six months, which should stimulate buyer and seller activity as well as improve consumer confidence. The historic low interest rates are expected to see an increase in the number of people purchasing an investment property through their superannuation funds, especially in Hobart. The Entry Level market (properties priced at less than $350,000) will be the most active market sector, particularly in Hobart and West Coast/Burnie regions. Ceiling insulation is the most sought after energy efficient feature of all Tasmanian properties. Hobart will be the best performing area for the state, especially in the regions of inner city Sandy Bay and Battery Point, which are still performing steadily as they are in the upper end of the market. The best performing country Tasmanian areas for the year ending April 2013 are: } Greens Beach, where houses showed growth of 11.14 per cent } Riverside, where units showed growth of 5.25 per cent. The commercial property market in Hobart is expected to soften before the end of 2013. Property prices in this sector will decrease, while rental prices will remain the same. Hospitality, especially tourism related, should show the greatest growth for the Hobart commercial property market.
72
First National Real Estate | 2013 Property Market Outlook Mid Year Update