TAS Hobart is absolutely flying

Plenty of activity here.... active investors need only apply....

 

Born and bred Tassie boy. Started in a grad program there and tried finding jobs there but couldn't find a job that pays as well as the mainland. If Tassie was really that great a majority of PC community would be moving there in droves. I can't think of anyone on PC that has moved or considering it. I still go back once a year to visit family and would say that it's a great place to visit (once in your lifetime) but living there is quite dull unless you're into bushwalking, camping or hiking.

Also, if you go to seek.com.au and look at the amount of jobs (all job advertised) in NSW vs Tassie and then filter it by income over $80k and then $100k, you'll see a greater proportion of total jobs that are $80k and over in NSW than Tassie. Not sure why you're surprised.

Census 2016: State and Capital City Comparison - Tenants' Union of Tasmania

Also, according to the most recent census you can see that Tassie, unsurprisingly has the cheapest rent in the country yet they also have the lowest median household income which makes them the third most affordable state in the country. Even then imo there is not much separately it from the other states with Tassie on 21% and Sydney on 25% so it's not like day and night.

I know where I'll prefer to live with our current rental being $350/week and household income significantly more than the highest household median.

Not sure what you're saying as I do have investments there already and my parent's home will be mine one day. I also said in my spiel that it's obviously great news for investors, my point was that Tassie residents will make a lot of noise because of my points and its clear from the facebook comments, not one positive comment about the announcement.

So when are you moving to Tassie? Given your profession, it would be pretty easy to get a job or set up your own business.

True but how is this different from living in Melbourne and Sydney where you can earn higher income and the competition there means that it's more affordable to eat out compared to Tassie. I would say my disposable income is higher living on the mainland than in Tassie. Hobart should be distinct from the mainland otherwise there's no reason for people to visit it.

In summary, I'm practically saying that Tassie will be the best performing state this year and will do better than last year. My point is that residence there won't like the campaign and I can't see people moving there until the pay increase, or Sydney becomes significantly less affordable. I can see low income earners moving there if they can get a job. It's hard to attract young people there as there's no well known schools or Uni like USyd or UMelb unless you failed to get into the degree you want. I know you can get into Med or Pharmacy more easily in Tassie than others. Oh yeah and commuting to work? Unless you live within walking distance or near the main road, you'll find that it's day and night in comparison to Sydney and Melbourne and worse the further you live away from the city.

 

During my discussion with one of the successful property investor-he mentioned that at oresent Tasmania is the place to invest, I guess I should read this thread from begining to get some tips

 

And speaking to those currently on the ground.... As with any place, what you knew some time ago, or through rellies is often outdated and biased.

 

Very true, thanks @Mac Fields

 

My observation is that Hobart peaked in July 2017. Since then prices have remained high but volume is going down. In some areas of country Tasmania the prices have reduced 3 to 7 per cent. Do I think Hobart can sustain these high property prices? Not in older housing stock. The newer houses and areas maybe.

 

Interestingly the place we bought just after July seems to have gone up since we bought it.

Price rises are never smooth . It’s a bit like the share market , the trend may be up but there are lots of peaks and valleys on the way .

My observation from having watch several booms from close up and a far , is that most times the locals underestimate what is happening and is going to happen .

Will be interesting to watch . Maybe this time will be different .

Cliff

 

Interesting observation, thanks. Are these observations from one suburb/area or across the board? I'm wondering if the ripple effect is carrying price increases from one area to the next and next and the areas that the ripple has moved on from are settling into a regular price point and sales volume etc.

 

Greater Hobart area and Southern Tasmania in particular. Northern Tasmania probably peaked a bit earlier. Sorell and greater area is an interesting market at the moment.

 

I cant comment on country Tasmania but my observations are that the Hobart market is becoming hotter with even less stock on the market and more buyer interest. Listings are down about 30% from last year and another 30% from the year before that.

SQM Research - Total Property Listings

SQM has current vacancy rates for Hobart at 0.3% making Hobart property even more attractive to investors

SQM Research - Residential Vacancy Rates

I'm planning to sell a property in February and my agent suggested we have 2 open homes before accepting an offer. (Some people are selling on day one or even before the advertising campaign starts).

 

There's definitely heat still in some of the market particularly with desirable up dated property. I'm not convinced that lower stock is a good sign. If people are not listing property it may be that they are not able to sell at the price they expect. There were properties on the market in the last two years I expected to be listed again this summer that did not sell in two years (badly in need of renovation and over priced). Some properties will always do well.

 

Interesting about 2 oh's before taking an offer. With the speed of sales, I would have thought that you would lose buyers as they would move to other places, thinking yours was under offers to another person.

 

The idea is that potential buyers are told that there will be two open homes (one midweek and one on the weekend) so every interested party has a chance to put in an offer.

The agent says the first offer might seem like a good one but in a rapidly changing market its hard to know what a good offer is until the market has been tested.

 

Yep, sounds good
2 oh's at commencement a few days apart. I initially thought the oh's were a week apart. All the best.

 

High sales volumes are seen as a indicator of price increases to come. Once prices start rising volumes fall off. I would say that's mainly because supply is limited - people don't want to sell once a boom is under way. They prefer to sit out of the market and benefit from rising prices.

 

Seriously ??

Having tracked stock on market for a while , for me it's one of the strongest indicators that a market is moving and going to keep on moving .

That my personal observation over the last few years .

For me , I've seen nothing to suggest the market won't continue to rise , except the belief amongst some people that Tasmania doesn't do that , but having checked historical figures and having bought our first property in Hobart in the early 2000's and watched the market closely since then , I know it does .

But ... Maybe this time will be different.

Cliff

 

Demand from buyers for property in Hobart tracked in line with the Australian average up until mid-2015, when it began to pull away. Since that time, growth in demand has been higher in the city than anywhere else in Australia, which translated to strong price growth in 2017. My initial thought was that it was speculation driving the market up, but it seems to be that the Tasmanian economy is changing, and quite dramatically.

Tasmania’s economy has traditionally been driven by government employment and agriculture, however in recent years tourism and education have increasingly played a role. This change has helped create new jobs, which in turn creates demand for housing. Offshore buyers are also increasingly looking at Hobart, primarily for the education sector. Interest in Hobart from China-based property seekers has jumped 60 per cent over the past 12 months.

The key trends for property investors

This year, Hobart may not experience the strong growth that occurred in 2017, however longer term it is certainly a market worth looking at.

 

Agree with your comments @radson , and as the workforce is becoming increasingly more mobile, location isn't as important. I saw reports about younger generations moving to Hobart and establishing businesses there. A plane trip is a trip, regardless whether it's from Hobart to xxx or Sydney to xxx. Hobart is maturing in many ways and the government has done well in promoting the city, and state more widely.

 

Sorry @Mac Fields . Not my comment, its a C+P from the link.

 

The Sydneysiders rushing to Tassie - realestate.com.au