Tasmania is rising to be a major investor hotspot this year and for a good reason.
Next Address founder Julie O’Donohue said Tasmania continues to hold up amid the downturn, with growth suburbs reporting minor drops in values.
“Key to all investing is of course picking the right micro-location — that is, close proximity to shopping, schools, cafes and restaurants, community infrastructure, and of course transport and employment centres, which makes for strong rental demand and likewise capital growth,” she said.
Devonport, Invermay, and New Norfolk are some of the suburbs worth looking into. Not only all these suburbs have a median price below $500,000, but they also have strong annual growth and low vacancy rates.
Brighton and Youngtown are also good spots — both of these suburbs have median prices over $500,000 and an annual growth of at least 30% in 2022.
“I always research infrastructure and whether any major civil works are planned for the future that will impact some areas more beneficially than others,” Ms O’Donohue said.
“And, when it comes to the house itself, appeal points and features that can elevate rent or offer scope for minor renovations and improvements to maximise rental return, are always good to look for,” she said.
Other Tasmanian suburbs worth considering are the following:
- Lutana – It reached a median rental return of around $537 and a 30% annual growth in median price last year.
- Glenorchy – It witnessed a 21% annual gain in median price to $607,000.
- Berriedale – Over the last five years, its median price grew 101% to $650,000. Meanwhile, its rental returns were at $500 per week.
- Mornington – Median prices in this suburb grew 55% over the last three years.
- Warrane – It reported a 39% growth in median price to $650,000.
“Obviously, there is a lot of movement in these Tassie locations and looking at the growth rates and the relatively small adjustments downward, indicate a definite potential for further growth there,” Ms O’Donahue said.
“Investing in these Southern locations may well prove to be the way to go, however, timing is of great importance.”
Your Investment Property previously published a piece featuring five investment hotspots in Tasmania for 2023.
McGrath Estate Agents founder John McGrath said certain factors such as affordability, lifestyle and much improved economic conditions have helped boost buyer demand in Tasmania, which resulted in an impressive five-year run for Hobart and the highest median house price growth among capital cities.
“While the state may have lost some momentum in the first half of 2022, several fundamentals such as strong relative annual population growth, increasing wages, and low unemployment levels are tipped to help stabilise the Tasmanian economy, with the forecast of pre-pandemic growth levels returning in 2023-24,” he said.
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