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Essential information, plus expert insight on what is shaping the national property market...
Developers struggle to obtain finance
The rising cost of funds and a lack of stamp duty concessions are hampering new unit construction in Hobart.
Hobart units currently have 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 Street complex, said while the market has been performing well he 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. You can’t get those pre-sales in Hobart, which means you can’t get construction finance and you can't start building.”
Tasmanian Premier Lara Giddings said Victoria is the only state with stamp duty concessions for off-the-plan purchases but said changes to land and payroll tax encourage potential investors.
Tasmania was “well and truly open for business”, Ms Giddings said. “Overall, Tasmania has the lowest taxation severity of any state or territory.”
Home renovation booming on Apple Isle
Tasmania is in the midst of a home renovation boom, with new kitchens, bathrooms and backyards topping the makeover wishlist.
Figures show the number of home renovations has risen steadily in recent years.
On average, renovators spend between $20,000 and $40,000 to spruce up their homes.
Master Builders Tasmania executive director Michael Kerschbaum said a few years ago home owners were waiting six to 12 months for a builder to do home renovations, but due to the drop in new homes being built the wait for a builder is currently as low as six weeks.
“With the rise in house prices, people are feeling a lot more confident spending money on their home,” he said.