Three reasons why this is a great time to buy

Contrary to what you may have heard in the media, this is actually a great time to buy property in Tasmania, whether you’re an investor or an owner-occupier.

The first reason this is a great time to buy is because there’s been a big increase in the number of for-sale properties on the market, according to a PropTrack analysis of realestate.com.au listings.

Hobart listings for August were 21.0% higher than the year before (see graph) and 17.2% higher than the month before.

Regional Tasmanian listings were 10.2% higher than the year before (see graph), although 1.3% lower than the month before.

An increase in seller supply means a reduction in buyer demand. So buyers have more properties to choose from and less competition for those properties. That makes it easier to identify a quality property and negotiate a good price – especially if you’ve got a buyer’s agent on your side.

How does 382% growth sound to you?

The second reason this is a great time to buy a Tasmanian home or investment property is because, if you’re planning to hold it for the long term, history suggests it will be worth much more in the future than it will today.

CoreLogic analysis for the 30 years to July 2022 found:

Australia’s median property price increased 382%
Hobart’s median price increased 399%
Regional Tasmania’s median price increased 361%

You might assume that if prices grew so strongly over those three decades, they must’ve done nothing but rise. On the contrary. As this CoreLogic graph shows, there were six major downturns during that time.

Of course, no one can predict the future. But if history repeats, Tasmanian property will be worth much, much more several decades from now than today – even if prices happen to fall a bit in the short-term.

Tasmania is very much a landlord’s market

The third reason this is such a great time to buy property in Tasmania – at least if you’re an investor – is because vacancy rates in August were staggeringly low, according to SQM Research:

Hobart = 0.5%
Launceston = 0.9% (see graph)
Burnie = 0.3%
East Coast = 0.4%
West Coast = 0.4%

The vacancy rate refers to the share of rental properties that don’t have a tenant. Anytime the vacancy rate is under 2%, landlords have the upper hand, because supply is low and demand is high. When the vacancy rate is under 1%, landlords are very firmly in control.

As a result, rents tend to rise steeply. Over the year to August, median rents rose 7.0% in Hobart and 8.6% in regional Tasmania, according to CoreLogic.

Looking to buy an investment property in Tasmania? To discuss your options, call 0439 639 508, email [email protected] or fill in this online form.

Remember, this article does not constitute financial or legal advice. Please consult your professional financial and legal advisors before making any decisions for yourself.