Buying real estate in Launceston?

We've created a guide to help you avoid pitfalls, save time, and make the best long-term investment possible.

Is buying a property in Launceston a good investment?

Last updated on 

property investment Tasmania

Yes, the analysis of Tasmania's property market is included in our pack

If you've admired the historic architecture and cultural heritage of Launceston, you may have envisioned making this charming Tasmanian city your residence, immersing yourself in its local history and timeless allure.

Is it a good idea though? What's the current state of the real estate market in that area? Are property values appreciating or depreciating? Are investors seeing returns on their real estate investments? How's the demand for rentals?

We'll answer all these questions for you! When building and updating our property pack for Australia, our team has been researching and surveying this area. In fact, there is significant customer interest in investing there. Therefore, we believe it would be beneficial to include some information about it in our property pack.

Why do property buyers like investing in Launceston?

Launceston, nestled in the northern region of Tasmania, has emerged as an attractive spot for property buyers, and there are several reasons for this trend.

One of the key attractions of Launceston is its unique blend of historical charm and modern amenities. The city is steeped in history, boasting well-preserved colonial and Victorian architecture that adds a distinct character, something that's not as prominent in many other Tasmanian areas or even in other Australian cities.

This historical allure is coupled with contemporary conveniences like good schools, shopping centers, and a robust healthcare system, making it a perfect blend for many.

Furthermore, Launceston's natural beauty is a significant draw. The city is surrounded by picturesque landscapes, including the famous Cataract Gorge, which is just a stone's throw from the city center.

This proximity to natural wonders, combined with a relatively temperate climate, gives it an edge over some of the more southern parts of Tasmania, which can be cooler and more remote.

The popularity of Launceston as a real estate destination began to rise significantly in the early 2000s. This surge can be attributed to a combination of factors, including its affordable property prices compared to major Australian cities like Sydney and Melbourne, and a growing recognition of its lifestyle benefits.

While it's hard to predict the future with absolute certainty, the ongoing interest in sustainable living and the appeal of a balanced lifestyle suggest that Launceston's popularity is likely to continue.

In terms of the demographic it attracts, Launceston is quite diverse. It appeals to retirees looking for a peaceful place to settle, young families attracted by the affordable housing and good education system, and even professionals who are increasingly able to work remotely and are drawn by the city's lifestyle.

However, it's also important to consider some potential downsides. Launceston is relatively small and doesn't have the same level of job opportunities as larger cities, which could be a limiting factor for some.

Additionally, while its isolation is part of its charm, it also means that travel to and from mainland Australia can be more time-consuming and expensive.

Make a profitable investment in Tasmania

Better information leads to better decisions. Save time and money. Download our guide.

buying property in Tasmania

Why is Launceston a nice place to live?

Launceston offers a lifestyle that many find appealing for various reasons. Let's explore what makes this city a great place to live.

The lifestyle and culture in Launceston are often described as relaxed and community-focused. It's a city where the pace of life is slower compared to bigger Australian cities, allowing residents to enjoy a more balanced lifestyle.

The city’s cultural scene is vibrant, with numerous festivals, galleries, and eateries that showcase both local and international art and cuisine.

For example, the Queen Victoria Museum and Art Gallery is a cultural hub, offering insights into both local and global art and history.

As for the expat community, Launceston has a growing number of expatriates, attracted by the city’s charm and quality of life. This community is well-integrated with the locals, contributing to the city's multicultural vibe.

When it comes to the cost of living, Launceston is generally more affordable than Australia's larger mainland cities. Housing is relatively cheaper, making it an attractive option for those looking to purchase property or rent at reasonable rates.

However, some items, especially imported goods, might be slightly more expensive due to Tasmania’s island location.

Safety is another factor that adds to Launceston's appeal. It's known for being a safe city with low crime rates, offering peace of mind for families and individuals alike.

In terms of amenities and facilities, Launceston is well-equipped. For education, there are numerous reputable schools like Launceston College and Scotch Oakburn College.

Healthcare needs are well served by facilities such as the Launceston General Hospital. Shopping enthusiasts are catered to by centers like the Quadrant Mall and Kings Meadows shopping area, offering a mix of retail outlets.

The city’s infrastructure is robust. Roads are well-maintained, and utilities like water and electricity are reliable. Internet connectivity, an essential aspect of modern living, is generally good, with ongoing improvements as part of national initiatives.

Accessibility is one of Launceston's strong points. It's well connected to other parts of Tasmania, with good roads like the Midland Highway linking it to the state capital, Hobart. Launceston Airport, a major transport hub, offers flights to mainland Australia, making travel relatively easy.

Public transportation in Launceston includes a comprehensive bus network, which is the primary mode of public transport. It serves the city and its suburbs efficiently, making it easy to get around without a car.

How much does it cost to buy real estate in Launceston?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Australia.

Understanding the cost of buying property in Launceston involves looking at various factors including the types of properties available, market trends, and future predictions.

In Launceston, the range of residential properties spans from apartments and townhouses to standalone houses and even luxury villas. The demand for each type of property can vary, but generally, standalone houses, particularly those with a bit of land or in scenic locations, are highly sought after.

This preference is often due to the lifestyle Launceston offers, which is more geared towards spacious living and enjoying the natural beauty of Tasmania.

As for the property market, Launceston has a mix of both new developments and resale properties. In recent years, there has been an increase in new housing developments, catering to the growing demand. This is partly driven by people moving from larger cities in search of more affordable and relaxed living.

Speaking of affordability, the price range for properties in Launceston can vary widely. The average price per square meter for a residential property was more affordable than in major cities on the Australian mainland. This affordability is one of the key attractions of the Launceston property market.

Looking at how property values have changed, there has been a noticeable increase in prices over recent years. This trend is attributed to factors like Launceston’s growing popularity as a lifestyle destination and the general Australian real estate market dynamics.

Regarding future developments and city planning changes, these can significantly impact property values. Launceston has seen ongoing development projects aimed at enhancing livability and infrastructure.

Specific developments or city planning initiatives, especially those improving connectivity or amenities, can boost property values in the affected areas.

Predicting the real estate market in Launceston for the coming years involves considering current trends and potential changes in economic and demographic factors.

Given its growing popularity and ongoing development, the market might continue to see an upward trend in property values. However, this is subject to broader economic conditions and policy changes.

Factors indicating a potential increase in property values in Launceston include continued interest from buyers looking for a more affordable and quality lifestyle, ongoing development projects enhancing the city's appeal, and the general trend of people moving away from larger urban centers.

Where is the best area to buy a property in Launceston?

When considering the best area to buy property in Launceston it's important to recognize that the 'best' area can vary depending on individual preferences, needs, and budget.

Launceston is diverse in its offerings, and different areas cater to different tastes and lifestyles.

Launceston's central area is known for its vibrant atmosphere, with proximity to cafes, restaurants, and cultural venues. Properties here are diverse, ranging from charming historic homes to modern apartments.

Moving out from the city center, you'll find suburbs like East Launceston and West Launceston. These areas are popular for their more tranquil, suburban feel while still being close to the city.

They often feature larger homes with gardens, appealing to families or those looking for more space. The property prices in these suburbs can be quite varied, but generally, they offer a good balance of value and lifestyle.

An up-and-coming area within Launceston that buyers should be aware of is Invermay. This suburb has been undergoing revitalization and is becoming increasingly popular, especially among younger buyers and professionals.

It offers a mix of residential options, from renovated older homes to newer units, often at prices more accessible than some of the more established suburbs.

For those looking for a property, Riverside is another area to consider. It's known for its beautiful natural surroundings and family-friendly environment. The properties here range from modest homes to more expansive, high-end residences, catering to a broad spectrum of buyers.

Conversely, there are areas where buyers might need to be more cautious. Suburbs that are further out and lack easy access to amenities or public transport might not be ideal for those who value convenience or are reliant on commuting options.

Additionally, areas undergoing significant development might see a lot of construction activity in the near future, which could affect the living experience.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Australia.

Area Atmosphere Property Types Price Range
Central Launceston Vibrant, close to cafes and cultural venues Historic homes, modern apartments Higher
East Launceston Tranquil, suburban Larger homes with gardens Varied
West Launceston Suburban, peaceful Larger homes, family residences Varied
Invermay Up-and-coming, revitalizing Older homes, newer units More accessible
Riverside Natural surroundings, family-friendly Range from modest to high-end homes Broad spectrum

Don't lose money on your property in Tasmania

100% of people who have lost money in Australia have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.

invest real estate in Tasmania

Is there a strong rental demand in Launceston?

Launceston has been experiencing a strong rental demand, which is influenced by various factors including its growing popularity, demographic changes, and economic conditions.

The demand for rentals in Launceston is robust for both short-term and long-term rentals, but each serves different market segments. Short-term rentals are popular among tourists and visitors, driven by Launceston's appeal as a tourist destination.

These rentals are often sought after in areas close to the city center, tourist attractions, or natural beauty spots, where visitors can easily access local sights and experiences.

On the other hand, long-term rentals are in demand due to the influx of residents moving to Launceston for its lifestyle, employment opportunities, and educational institutions. The target demographic for long-term rentals includes young professionals, families, and students.

For example, properties near the University of Tasmania’s Launceston campus are popular among students and academic staff, whereas families and professionals might prefer residential areas like East Launceston or Riverside for their community feel and access to schools and parks.

Potential tenants are often looking for properties that balance cost, convenience, and lifestyle. Apartments and townhouses in the city center or close to major employment hubs are popular among young professionals, while families generally seek houses with more space and access to schools and parks.

Amenities that help reduce vacancy and make a property more attractive include reliable internet connectivity, proximity to public transport, and modern conveniences within the property, like updated kitchens and bathrooms.

In terms of potential returns on investment, properties in Launceston have been showing promising trends. While specific numbers can vary, the general increase in property values and rental demand suggests a favorable market for investors.

Properties that offer a unique blend of convenience, amenities, and lifestyle appeal tend to have better yields. Modern apartments in central Launceston or family homes in suburbs like Riverside or East Launceston are increasingly sought after.

Recently, there has been a growing demand for properties that can offer a 'work-from-home' environment, given the global shift towards remote working.

Properties with extra space for a home office or those in quieter, scenic locations while still being connected to the city are becoming more popular.

These properties are likely to offer better yields in the current market, aligning with the changing preferences and needs of tenants.

Make sure you understand the real estate market in Tasmania

Don't rush into buying the wrong property in Australia. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.

real estate market Tasmania

Is it easy to buy a property as foreigner in Launceston?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in Australia.

Buying property as a foreigner in Launceston, Tasmania, involves navigating specific regulations and understanding the local property market.

Firstly, foreign buyers in Australia are subject to regulations set by the Foreign Investment Review Board (FIRB). These regulations often require foreign buyers to obtain approval before purchasing property in Australia.

The FIRB typically allows foreign investment in new developments, as this is seen as contributing to the construction of new housing stock.

However, buying existing residential properties is often restricted for foreign buyers. This means in Launceston, as a foreign buyer, you might be more likely to invest in new developments or off-plan properties.

The purchasing process in Launceston for foreign buyers largely mirrors that of local buyers, with some additional steps. After finding a property, you would typically make an offer, and once it’s accepted, proceed to contract exchange and settlement.

However, as a foreigner, you would also need to apply for FIRB approval, which can add time and complexity to the process.

Risks associated with property investment in Launceston include market fluctuations, which can affect property values and rental yields.

Additionally, as a foreign investor, there might be tax implications, both in Australia and your home country, that could affect the profitability of your investment.

Common pitfalls for foreign buyers in Australia include underestimating the importance of location and local market conditions.

For example, investing in areas without understanding future development plans or local demand trends can lead to less profitable investments.

Also, foreign investors might not be fully aware of the tax implications, such as capital gains tax, land tax, and stamp duty, which can be significantly different from their home countries.

Working with a local real estate agent or lawyer is highly advisable. They can provide valuable insights into the local market, assist with navigating the legal and regulatory requirements, and help avoid common pitfalls. A local expert can also guide you through the FIRB application process and ensure compliance with Australian property laws.

Common exit strategies for property investors in Launceston include selling the property for capital gain or holding it to generate rental income. The choice of strategy should consider market conditions, personal investment goals, and potential tax implications.

Make a profitable investment in Tasmania

Better information leads to better decisions. Save time and money. Download our guide.

buying property in Tasmania

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.