As property prices in the southeastern capitals continue to skyrocket, an increasing number of foreign and local investors are eyeing opportunities further south.
According to the latest CoreLogic Hedonic Home Value Index for March, the annual rate of capital gains moved into double-digit growth in Hobart, increasing by 10.2%. This figure aligns with the findings of Propertyology, which has tipped Hobart to become Australia’s best-performing capital city property market in 2017.
Now it seems that Launceston and nearby towns are beginning to feel the flow-on effects of Hobart’s growth. Andy Howell, property agent for NAI Harcourts, said the lease and purchase rates of property in the region were increasing. “[Launceston] looks a lot more full that it did two years ago,” he said.
Prominent properties like the Seaport Medical Centre, Great Lakes Hotel, The Grange at Campbell Town, and What’s New in the mall, are currently listed for sale.
According to Howell, a lot of interest in the commercial sector comes from foreign investors, including the Chinese. “The amount of foreigners that are buying is certainly increasing,” he said.
Foreign investors are particularly interested in hospitality, supermarkets, and service stations – which are investments that can be “owned and operated,” said Howell.
At Campbell Town, The Grange, a national heritage-listed property, has been hailed as a unique investment opportunity. Included in the three titles of the land are a conference centre, a historic home, and surplus land. Knight Frank Tasmania agent John Blacklow has the property listed for $1.975m.
The property was put on the market last Thursday, and by afternoon, was generating strong interest. “It is a quality offering – a magnificent property,” Blacklow said. “We feel it should create a strong inquiry level because that is what this quality of property deserves.”
Related stories:
TAS Excerpt From The 2017 April Market Report
House Rents On The Rise In Most Capital Cities
