State of Markets – TAS January 2012

By Phillip Tarrant 02 January 2012 | 1 minute read

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

TASMANIA

Fast Figures

  • $281,000 – median house price, Moonah
  • $241,000 – median unit price, Moonah
  • 69% – five-year growth in units, Moonah

Tas confidence flagging, survey shows
A new survey has found that confidence in Tasmania’s property market is lower than in any other state or territory.

The inaugural Property Council/ANZ Property Industry Confidence Survey saw 55 per cent of September’s respondents expecting Tasmania’s economic growth to be weaker or significantly weaker in the future.

According to Property Council (Tasmania) executive director Mary Massina, “When compared to other states and territories, Tasmania’s confidence really has hit rock bottom.”

Ms Massina said the lack of confidence was encouraged by a lack of progress on key government reforms.

Over 67 per cent of survey respondents saw the state political environment as a significant influence on their investment decisions.

This was closely followed by domestic economic conditions (58.4 per cent) and the federal political environment (33.6 per cent) as influences.

“Tasmania’s political environment and weakening economic growth, combined with barriers such as planning, development decision making and general business conditions has had a lethal effect on the Tasmanian property industry’s confidence,” Ms Massina said.

“Despite the release of the state government’s Economic Development Plan, which was supposed to provide a clear strategy for economic growth, the property industry – Tasmania’s biggest private sector industry – isn’t feeling the love.”

Prices fall in Hobart
Hobart’s housing market has seen falling prices and this is unlikely to pick up, according to RP Data.

The latest RP Data/Rismark house price index showed Hobart dwelling prices fell by 9.1 per cent for the 2010/2011 year.

The decline in house prices has accelerated over the past three months, with Hobart dwelling prices down 5.8 per cent.

RP Data’s head of research, Tim Lawless, said the key reasons for Hobart’s weak housing market included a low rate of migration and lack of job creation.

About the author

Phillip Tarrant

Phillip Tarrant

Phillip Tarrant is executive editor – Real Estate at Momentum Media. He is also an investor with a large property portfolio.

He leads the content strategy and corporate growth for a range of market and business intelligence platforms at Momentum Media, including Smart Property Investment – the authoritative voice for Australia’s property investment community.

As head of the Smart Property Investment Podcast Network, he also steers the largest network of property podcasts in Australia, which collectively generates nearly 2 million downloads every year.

There are over 2.6 million investment properties in Australia, with over 2.1 million Australians (or around 8 per cent of all Australians) owning one or more investment properties. A vibrant and critical sector for... Read more



State of Markets – TAS January 2012
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