TAS Hobart is absolutely flying

I have finally secured a great little property in Hobart after some of the fiercest competition I have ever experienced. Any property that is coming onto the market within a 10km radius of the cbd has 5-10 offers within a few days. It is absolutely madness at the moment. Reminds me of Sydney around mid 2015 with the competition for property. Difference is that yield is still a good 6% in Hobart but won't be for long I suspect. I have been quiet on Hobart until i managed to secure my deal and I suspect many of you on here are currently buying the place up because I have not seen the level of enthusiasm around Hobart on this forum as the activity on the ground would suggest. Agents tell me most sales are going to Sydney siders.

 

So sydney siders have had enough of the city life?
Its hardly surprising i guess. Hobart is very charming but its also very cold. I prefer north or north east coast
Outer suburbs have great yields but you really have to remember that it isnt a very big city and dont get too carried away.
There are 4 other towns in aus that are very similar size that get no hype and i think its purely because they arnt a state capital.

 

No it doesn't sound like there is a southern migration happening. Sydney siders are buying the place up for investment. They are buying sight unseen. One agent was a first home buyer himself and was looking in Moonah but can't get a look in at anything he said. Boom time over there

 

@josh123

 

Interesting first hand buying insights, thanks for sharing. Exactly what I've been observing by monitoring interesting/suitable properties down there over the past 4-5 months as I've been re-financing and setting up for purchase. I actually had the exact same thought and wondered if more experienced investors thought Hobart (at least closer in) as a mini Sydney at the moment.

The big question is how long/far will this go? I've noticed some big gains in the 4-5k ish ring of suburbs and wonder how much value is left still within this zone ? The question there is, will this growth behaviour keep extending out to say the 10km zone? Seems a fair way out for a city of 200,000 odd people to me?
I love the state, the appeal, and the lifestyle drivers though.

Currently the listed prices seem so far short what many quality properties are fetching it's hard to know where ones budget can stretch.

A recent report I just read states that two thirds of our investors are locals in Tassie and that 1644 interstate buyers acquired property in Tasmania in 2016, of these 630 were investors.

So the investor/OO ratios still seem good perhaps indicating the bulk of the drive is still OO?

 

Interesting info regarding the OO/investor ratios, I will look into this a little further. Agents have told me that this has been building for the last 6 months and now everything is just going gang busters. The thing with Hobart is the yield, even with the strong gains recently the return is still very strong. I have been on the ground and I can assure you it is extending out to the 10km zone and maybe even beyond. Howrah is about 10km and it is ridiculous at the minute. Glenorchy is 8km or so North and it is ridiculous. Don't pay any attention to the asking prices, anything that is not a new listing within a 10km radius has already sold. Ring the agent and I bet you it is sold for over the asking price. I rang at least 20 properties one day and they were all under contract.

 

Can I ask why South Launceston is not going off?

 

Hope this is all true @Inov8ive I've just bought one

 

Nice work, 100% all true. A very frustrating month for me trying to buy in a very hot market. Where bouts did you buy?

 

@Daniela

 

Glenorchy
@Inov8ive

 

Give it time . In tassie the cycle goes Hobart first then .....

Cliff

 

I've had two patients buy there as investments with the intention of moving down there when they retire .

Given tassie has had two recent high profile screen exposures , the Kettering incident , and Lion , maybe that's adding fuel to the .....

Cliff

 

Was the scene from the movie from "Lion" taken on Sandy Bay or am I really off?

 

I was looking at this property yesterday on the market for Offers Over $219000. It seemed to sell fairly quickly. Looked like a good deal to me. It will be interesting to see how much it went for.

35 Continental Road, Glenorchy, Tas 7010 - Property Details

 

SeaChange, does multiple cycle history indicate that Launceston always follow Hobart? Hobart seems to have a few drives that may keep fueling, improving employment, population growth, some developments/infrastructure etc. Do you know if Launy has any of these?

Perthguy, I had been monitoring that one too. It was listed for a little while despite the price which made me wonder what the issue was, curious to see what it went for.

 

Not sure , but the beach shack was perfect .

Cliff

 

@Perthguy yeah I've been watching that one, actually the one I bought is a very similar deal colours and all

 

Lol yeah I looked at this one too. Didnt quite fit my exact criteria in terms of location and development potential but spoke to the agent anyway and the flock were all over it.

 

Don't have access to long term history ( did in previous cycle ) and looked seriously at Launceston . My recollection is that it did . In last cycle it did .

Tassie's always managed to double each cycle , while having decreasing population , decreasing employment , major industries closing . Even Queenstown has boomed and that has to be about one of the biggest basket cases of all time . There was an article on an investor who made millions there in the last cycle in on of the property mags .

Given there are now economic and social positives I expect strong growth .

I did a fair bit of reading before buying in Launceston ( as should anyone , don't take my word ) and was reasonably happy with what I saw . The Uni is being redeveloped , brown brother have invested up there l the Tamar valley is very nice .

Vacancy rates are low and stock on market is trending down ( though Hobart is obviously stronger in this ) .

There are things going on in the north coast and some is being driven by Jackie Lambie , from Bernie , who has used her position as one of the key power brokers to push stuff though in return for her vote . She has been quite upfront and open about this . As a result she was voted back very easily and unless she stuffs up will be there for a long time .

Cliff Turner