Four reasons Tasmanian property investors are smiling right now

The recent property boom might be drawing to a close, but there’s good news aplenty for
property investors in the Apple Isle.

Take asking rents, for example, which have increased significantly over the year to July, according to SQM Research:

Hobart = 13.7%
Launceston = 6.2%
Burnie = 9.9%
East Coast = 14.4%
West Coast = 21.8%

Why are rents skyrocketing? That leads on to the second reason Tasmanian property investors are smiling right now – which is that vacancy rates are sitting below 1% across the state, according to SQM Research data for June.

Hobart = 0.6%
Launceston = 0.9%
Burnie = 0.3%
East Coast = 0.3%
West Coast = 0.6%

The vacancy rate measures the share of empty rental properties. So these rock bottom numbers suggest the supply of rental properties is barely keeping up with demand. The shortage of available rental accommodation increases competition, giving landlords the power to raise rents.

What’s more, it’s unlikely demand will dampen down anytime soon, with the latest Australian Bureau of Statistics’ data showing that Tasmania’s population grew 0.8% over the 2021 calendar – faster than the national average of 0.5%.

It makes perfect sense that Tasmania is such an attractive place to live or work, when you consider that our island paradise offers something for everyone – whether that’s a strong economy, breathtaking beaches, top-quality food and wine or a relaxed lifestyle.

The fourth reason Tasmanian property investors are in such a good position is because average weekly earnings for workers increased faster in Tasmania than the country, according to the latest ABS data (3.6% v 2.1%), suggesting that tenants can afford to pay higher rents.

Looking to buy an investment property in Tasmania?

All the indicators might be looking good when it comes to property investing in Tasmania. But that’s only if you buy the right investment property at the right price, which can be easier said than done.

Tasmania might be the smallest state, but you still need to be very selective about where and what you buy if you want to maximise your rental return.

With more than a decade of experience in the Tasmanian property market, Buyer’s Agents Tasmania can help you identify the right location and the right property – making your search less stressful, less time-consuming and more profitable.

Get in touch by calling 0439 639 508, emailing [email protected] or filling 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.