TAS Someone please explain Hobart's property market

I think Hobart market will out perform other markets in short term,i.e. 3 years
However, in medium to long term,i.e. 5-7 years, Brisbane possibly will do a little bit better due to low growth in the past 10 years and slowly improving economy

- Hobart has good economy, low vacancy, low supply
- Hobart's medium house price growth in the last 10 years is around 45%. This is less than Sydney's 100% and Melbourne's 60%

- Louis Christopher predicts Hobart tops the growth rate among capital cities in 2019. I tend to find that his predictions were most accurate in the past few years. His prediction for 2019 can be found here

30 per cent drop forecast for Sydney and Melbourne, but Hobart outlook is strong: SQM Research

I am considering the option of buying in Hobart/Launceston now, selling them after 3 years and then buying more in Brisbane to max out gains. I have a few properties in Brisbane and land tax hurts.

@See Change @Casey b @Peter_Tersteeg

 

That's a crazy PM cost! How do Tassie PMs justify such high rates? Or is it because every PM charges around that anyway so literally there is no competition?

Cheers,
David

 

While there's many who think that Tassie has peaked , I'm not convinced . BTW , these are probably the same people who said Tassie was a bad place to buy anyway ... and there were many of those on the forum .

The reality is even the best central parts of Hobart have only gone up by around 50 % and middle ring places even less and some outer ring places have only just passed their previous peaks .

We bought our last place in Hobart in the middle of last year ( cash purchase in Super ) and won't be buying any more , but that's due to serviceability . We will be selling a property we bought in 2002 , but that so we can get our debt down before we hit the IO to PI wall in a couple of year .

Haven't looked closely enough to see if we would buy at the moment if we could , but almost everyone on the forum is too quick to right tassie off and over the last 16 years I've been watching , they're invariably wrong ..

Cliff

 

Dave

Most charge 9% in Hobart unless you have multiple properties

I guess there are a couple of reasons :
Commission rate is probably proportional to rent amount Sydney 5% Brisbane 7%Hobart 9%. PMs may get same amount of commissions although percentages are different. Rents in Hobart were very low before the boom.

I find tradies in Hobart charge more than the ones in big cities. This might apply to other professions as well

 

When I was in Tassie the start of the year there was a lot going on in regards to work and international flights opening up again, very little getting built. A heap of other things I found from a tour guide who was full of good information. Stat I found interesting was 76% of people who moved there moved back within 3 years

I think your right just the stat above could be a concern but things do change, and it could be much less moving forward...

 

Way more in Logan.

 

Wanted to ask what demographic of people have been moving to Hobart and why?

 

International students !!!(suprisingly this element is never mentioned sufficiently as a growth factor in Hobart for some reason?)

In short, Australia is a blessing countries, many international student would do anything to obtain a PR after their education here. A combination of reducing migration quota and an increasing competition in big cities (NSW, VIC, SA, WA ...) makes Tas remains the least restricted state for Immigration (after uni education) purposes. In around July 2017, Tas gov has even announced some sort of changes in TR/PR policy, making it even more attractive for students. All of these lead to a flood of international students to the areas, accomodation shortage and eventually house price.

I reckon you can guess what mickyy's stat of 76% ... is about. Students after obtaining PR or at least a long term TR visa in Tas are coming back to big cities for job opportunities. There're some recent changes in Tas regulation to forced students being more comitted to Tas though ...

 

Mainly retirees if I recall correctly

 

My Chinese colleague at work studied in Tasmania! I thought it was an odd place to study... Anyway, now she's in Sydney, living in one of the Rhodes apartments.

 

If possible, keep properties in both markets. Btw, you can negotiate property management rates just as one can negotiate anything. Also, the vacancy rate at the moment I believe is 1% which means you should have no problem getting a tenant. Do your due diligence!

 

T

True that! Some of my friends who are currently on their student visa moved to Hobart in 2017. They just finished their study and lodged their PR application. Few got PR after a couple of months and already planned to return to Sydney.