Ensure you never miss an issue of the
real estate business bulletin
State of Markets - TAS June 2012

State of Markets - TAS June 2012

by Reporter 0 comments

Essential information, plus expert insight on what is shaping the national property market...


Fast Figures

  • 10% – increase in dwellings approvals for Hobart, February 2012 (ABS)
  • $275,000 – Hobart median unit price, March 2012 (RP Data)
  • 7% - Hobart’s unemployment rate, March 2012 – the highest in the nation (ABS)

Developers struggle to obtain finance

The rising cost of funds and a lack of stamp duty concessions are hampering new unit construction in Hobart.

Hobart units currently have an average annual growth rate of 11.4 per cent, according to RP Data.

Developer Heath Thompson, who is selling apartments in his new Bathurst Street complex, said while the market has been performing well he has ruled out further investment in Hobart.

“As it stands now, we would never do another apartment complex like this in Tasmania,” Mr Thompson said. “In Melbourne, there are huge stamp duty savings if you buy off the plan. You can’t get those pre-sales in Hobart, which means you can’t get construction finance and you can't start building.”

Tasmanian Premier Lara Giddings said Victoria is the only state with stamp duty concessions for off-the-plan purchases but said changes to land and payroll tax encourage potential investors.

Tasmania was “well and truly open for business”, Ms Giddings said. “Overall, Tasmania has the lowest taxation severity of any state or territory.”

Home renovation booming on Apple Isle

Tasmania is in the midst of a home renovation boom, with new kitchens, bathrooms and backyards topping the makeover wishlist.

Figures show the number of home renovations has risen steadily in recent years.

On average, renovators spend between $20,000 and $40,000 to spruce up their homes.

Master Builders Tasmania executive director Michael Kerschbaum said a few years ago home owners were waiting six to 12 months for a builder to do home renovations, but due to the drop in new homes being built the wait for a builder is currently as low as six weeks.

“With the rise in house prices, people are feeling a lot more confident spending money on their home,” he said.

State of Markets - TAS June 2012
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
An industry where the resilient succeeds

Tim Heavyside believes that a strong support team and good foundations are paramount to success in the real estate industry, and with regu...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?