1 minute read

Developers struggle to obtain finance

Developers struggle to obtain finance

by webmaster | April 20, 2012 | 1 minute read

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

by webmaster
April 20, 2012

Hobart units are currently achieving 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 St complex, said the market has been performing well, but 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,” he said.


“You can't get those pre-sales in Hobart, which means you can't get construction finance and you can't start building."

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

Tasmania was "well and truly open for business", she said.

"Overall Tasmania has the lowest taxation severity of any state or territory.”

share the article

Subscribe to get the latest news and updates - join a community of over 80,000 property investors.

Check this box to receive podcast updates

From the web

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.