Despite some positive data around retail and tourism, house value declines are still expected to occur across Hobart.
While CommSec Business Sales Index saw sales in Tasmania grow by 0.8 per cent in September, the highest result across Australia, providing a positive outlook for retail, house prices are not expected to grow in line with this, according to BIS Shrapnel’s Robert Mellor.
In fact, a 7.7 per cent decline in real terms of the Hobart median house price is expected over the next three years.
Minister for tourism, Scott Bacon, has been praising the strength of Hobart as a tourist hotspot.
"Business events being held around Tasmania this month have seen more than 5,000 delegates heading to the state, and the positive word of mouth from conference delegates can not only help secure return business but also encourage others to experience what we have on offer,” he said at a Regional Tourism Network Gala Dinner this week.
However, despite this attraction, the BIS Shrapnel lmi housing outlook report points to “the outflow of younger Tasmanians seeking employment” increasing, even while net interstate migration has recently been a positive. This has pushed the net interstate migration figures to an outflow.
“With a relatively weak economic outlook and a significant dwelling oversupply across Tasmania, upwards pressure on prices will be limited,” it says.