All sources have been thoroughly verified for credibility. Furthermore, a local real estate expert has reviewed and approved the final article.
Yes, the analysis of Tasmania's property market is included in our pack
Thinking of buying a property in Tasmania? You're not alone!
Many people are captivated by Tasmania's natural beauty and dream of owning a cozy cottage or a modern house in this region.
Would it be a profitable investment, though? Are property prices increasing in Tasmania? Is it expensive? Is it more profitable to buy in Hobart or Launceston? Are there any hidden fees? Where are the best yields?
In this article, everything is sorted out for you.
The BambooRoutes team has really dug into this market. As a matter of fact, we've gathered all our findings in a pack. Get it now.
In the lines below, we will share some of this knowledge.
How is the real estate market in Tasmania?
Are property prices booming or faltering? Instead of relying on opinions, we turn to hard data and stats for clarity
Types of properties
In Tasmania, there are various types of properties available for sale, ranging from houses and apartments to land and commercial spaces.
Houses offer standalone living with different sizes and styles, while apartments provide compact and shared living options.
Land parcels are available for those interested in building their own homes or projects.
Commercial properties cater to business needs, offering spaces like offices, shops, and warehouses.
Whether you're looking for a place to live, invest, or start a business, Tasmania offers a diverse range of property options to suit various preferences and goals.
Better to buy or rent?
(If you want to live there yourself and not rent it to others)
If Tasmania, the picturesque Australian island state, has caught your interest as a place to settle, you might be considering whether it's better to buy or rent a property.
Usually, buying is better than renting in Tasmania due to its low cost of living and attractive property prices.
On the flip side, renting offers greater flexibility if that's what you prefer.
Property prices in Tasmania
On average, according to the last data from CoreLogic, buying a property in Tasmania would cost you around $4,200 per square meter.
There are big differences, obviously. The value of a square meter for a property in Tasmania might differ from an apartment in Hobart. We actually offer a more in-depth analysis in our pack for buying property in Tasmania and in Australia.
To put things in perspective, it is 4.5 times less than the prices in the center of New York.
Also, housing prices in Tasmania are 61% cheaper than in Sydney.
The most expensive places in Tasmania are probably Hobart, Sandy Bay, Battery Point, and South Hobart, while the cheapest areas are likely to be rural areas and suburbs outside of the major cities.
Trends
First and foremost, we have to acknowledge that Australia is, today, one of the most stable countries in the world. The last Fragile State Index that has been reported for this place is 22.7.
Keep this in view when pondering the viability of buying a property in in Tasmania.
Also, according to the International Monetary Fund (IMF), Australia's economy is expected to soar by 8.8% in the coming 5 years, resulting in an average GDP growth rate of 1.8%.
If you want to invest in real estate in Tasmania it's a good thing because a growing economy (usually) leads to higher incomes for citizens, enabling them to invest in real estate, which boosts demand and prices for properties.
Also, in Australia, the average GDP per capita has changed by 4.0% over the last 5 years. The growth, although minimal, is still present.
These are positive signals showing that property prices in Tasmania might increase in 2024 and during the coming years.
Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Australia right now.
Buying property in Tasmania
Buying real estate in Tasmania can be difficult due to the lack of reliable and up-to-date information available. That's why we have created the pack to buy property in Tasmania and in Australia.
Buying process
Within our pack, we have outlined the complete buying process. This includes the necessary documents, the applicable taxes, as well as information about where to locate properties, and more.
Here, we are providing you with a simpler version to assist you in better comprehending the information.
This is the step-by-step process to purchase a property in Tasmania:
- Set a budget and obtain pre-approval from a Tasmanian lender.
- Research and choose preferred locations, considering Tasmanian property market trends.
- Engage a licensed real estate agent familiar with Tasmania's regulations.
- Inspect properties, considering Tasmanian weather and environmental factors.
- Make an offer, and if accepted, sign the Contract of Sale and pay the deposit (usually 10%).
- Engage a solicitor or conveyancer experienced in Tasmanian property law.
- Conduct property searches, including land titles, zoning, and any encumbrances specific to Tasmania.
- Review the Certificate of Title and other relevant documents unique to Tasmania.
- Arrange a building and pest inspection, considering Tasmania's unique ecosystem.
- Obtain formal loan approval from a Tasmanian lender.
- Complete the settlement process, pay the balance, and transfer ownership with a Transfer of Land.
- Celebrate as you become the proud owner of a property in beautiful Tasmania.
Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Australia.
Make a profitable investment in Tasmania
Better information leads to better decisions. Save time and money. Download our guide.
Where to find a property
Explore these websites to find properties in Tasmania.
- Realestate.com.au - Comprehensive platform for real estate services, offering property listings, mortgage information, suburb research, and property news.
- Domain - Property portal offering a wide range of real estate services, including listings, home loans, new developments, and news updates.
- Flatmates - Australia's largest share accommodation website, connecting individuals looking for shared homes or flatmates.
- Allhomes - Real estate website providing property services like buying, renting, selling, and commercial properties.
- Realcommercial - Leading destination for commercial property, offering listings, investment opportunities, news, and agency information.
Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Australia.
What you could get
As mentioned before, the average price per sqm in Tasmania is $4,200. A 1-bedroom property with a size of 60 square meters would cost approximately $252,000, whereas a 2-bedroom property with a size of 85 square meters would cost approximately $357,000.
Of course, the price of properties can be influenced by their qualities and the area they're in.
Prime property locations in Tasmania typically mean higher property valuations. An apartment in Battery Point might be around $480,000, whereas a condominium in Sandy Bay could be priced at $450,000.
On the other hand, some areas are more budget-friendly. You may find a condominium in Moonah for $200,000, or you could discover a property in Glenorchy priced only at $160,000.
We give a more detailed pricing list in our full pack for buying property in Australia.
Mistakes to avoid
Here are the main pitfalls when buying property in Tasmania, Australia:
- Limited market liquidity due to Tasmania's smaller population and remoteness.
- Potential exposure to extreme weather conditions like heavy rainfall and windstorms.
- Stricter heritage preservation laws that may limit property alterations.
- Risks associated with purchasing property near bushfire-prone areas.
- Limited access to essential services in remote rural regions.
- Environmental restrictions for coastal properties to protect sensitive ecosystems.
- Higher stamp duty rates for non-residents or interstate buyers.
- Potential impact on property value due to changes in tourism industry trends.
We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.
Everything you need to know is included in our Australia Property Pack
Living in Tasmania
Living in Tasmania is a unique experience, offering a mix of natural beauty, cultural attractions, and a relaxed lifestyle that make it an ideal place for buying property.
Cost of living
The cost of living in Tasmania is generally lower than in other parts of Australia, making it a great place to live for those looking to stretch their money. Tasmania also has a lower unemployment rate than other states, so the cost of goods and services is generally lower.
Here are some examples to better understand the cost of living in Tasmania, Australia:
- A bottle of "Cascade Premium Lager" (local beer): $3-$5.
- Rent for a one-bedroom apartment in Battery Point, Hobart: $1,000-$1,700/month.
- Dinner for two at "Franklin" restaurant in Hobart: $70-$120.
- Monthly "Metro Greencard" for public transportation in Hobart: $50-$80.
- "Pumpkin scones" from a local bakery: $2-$4.
- 1 liter of "Tasmanian Oak" milk: $1.50-$2.50.
- Monthly membership at "Anytime Fitness" gym: $40-$65.
- Ticket to "MONA" (Museum of Old and New Art) exhibition: $20-$25.
Areas and spots
We want to show information in a way that is easy to understand. Therefore, we made a table that shows the different parts of Tasmania. For yields, prices and rents, check our property pack.
| Place | Description | Strengths | Weaknesses |
|---|---|---|---|
Hobart | Hobart, the capital city of Tasmania, offers a diverse property market with opportunities in both residential and commercial sectors. | Strong demand from tourists and students, beautiful waterfront properties, and growing job market. | High competition among investors, potential for limited property supply in certain areas. |
Launceston | Launceston is known for its charming architecture and affordable property prices, making it an attractive option for investors. | Affordable property prices, increasing interest from mainland buyers, and improving infrastructure. | Slower property appreciation compared to larger cities, limited investment opportunities in certain property types. |
Devonport | Devonport is a coastal city with potential in the tourism and agriculture sectors, offering various property investment options. | Scenic coastal properties, growing tourism industry, and potential for agricultural property development. | Relatively small market with limited property diversity, seasonal fluctuations in tourism demand. |
Burnie | Burnie is a regional center with a developing property market, attracting investors with its affordability and potential for growth. | Affordable property prices, ongoing infrastructure development, and potential for property value appreciation. | Limited job market compared to larger cities, slower population growth. |
Ulverstone | Ulverstone, located on the northwest coast, is a peaceful town with a growing property market that appeals to families and retirees. | Tranquil coastal lifestyle, affordable housing options, and increasing interest from retirees. | Limited major employment opportunities, potential weather-related risks in coastal areas. |
Devonport | Devonport is a coastal city with potential in the tourism and agriculture sectors, offering various property investment options. | Scenic coastal properties, growing tourism industry, and potential for agricultural property development. | Relatively small market with limited property diversity, seasonal fluctuations in tourism demand. |
Strahan | Strahan, located on the west coast, is a picturesque town known for its tourism appeal and potential for eco-tourism property investments. | Stunning natural surroundings, thriving tourism industry, and eco-friendly property development opportunities. | Remote location, limited market size, and potential seasonality in tourism demand. |
Queenstown | Queenstown, surrounded by mountains, offers unique opportunities for investors seeking eco-tourism and adventure property projects. | Scenic mountain views, potential for adventure tourism development, and lower entry costs for certain properties. | Small market with limited demand, potential weather-related risks in mountainous regions. |
Life in Tasmania
Tasmania has a strong and diverse economy, with the tourism industry being the largest contributor to its Gross State Product. The state also has a significant agricultural sector, as well as a growing tech and manufacturing industry.
What expats usually like the most in Tasmania is the amazing natural beauty of the area, such as the stunning beaches, mountains, and forests, as well as the laid-back lifestyle and friendly locals.
Tasmania has generally good access to healthcare, with a range of public and private services available.
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Renting out in Tasmania
This section is for you if your goal is to buy a property and rent it out to generate income.
Long-term
According to the data reported by Wikipedia, the home ownership rate in Australia is 66%, which is average.
When people buy in Tasmania it's usually to live there, and not to rent out.
If you decide to rent out long-term, you might want to target people who are looking for a more affordable, relaxed lifestyle in Tasmania. This could include young professionals, retirees, and people who are looking to escape the hustle and bustle of city life.
Here is a little summary table we've made for you.
| Property type and area | Profiles of potential tenants | What they are looking for | Expected monthly rent in $ |
|---|---|---|---|
Apartment in Hobart | Students and professionals | City living and convenient amenities | $1000 - $1500 |
House in Sandy Bay | Families and expats | Near good schools and waterfront | $2000 - $3000 |
Cottage in Launceston | Artists and heritage enthusiasts | Quaint neighborhoods and cultural experiences | $1200 - $1800 |
Apartment in Battery Point | Professionals and retirees | Historical charm and upscale living | $1500 - $2500 |
Beach House in Freycinet | Nature lovers and vacationers | Stunning coastal views and outdoor activities | $1800 - $3000 |
Apartment in Devonport | Commuters and families | Access to town amenities and workplaces | $800 - $1300 |
House in Kingston | Families and nature enthusiasts | Suburban comfort and recreational areas | $1600 - $2400 |
Now, you will probably ask us about the yields. Unlike other places, giving you an average rental yield for Tasmania is though. The region is quite varied. For example, rental yields in Hobart and Launceston are quite different from those in more secluded areas.
Short-term
You could also decide to rent short-term to tourists visiting Tasmania for a holiday, or business travelers in need of accommodation for a short period of time. Additionally, you could consider renting to seasonal workers who are in Tasmania for a few months at a time.
If you decide to go with that option, look for properties in the popular tourist destinations of Hobart, Launceston, and the Huon Valley. These areas are known for their abundance of short-term rental opportunities due to their popularity with visitors.
Is it worth buying real estate in Tasmania then?
In Tasmania, buying a property can be a fantastic decision if you're looking for a unique blend of natural beauty, a lower cost of living, and potential investment opportunities.
If you plan to live in Tasmania long-term, purchasing a property is often more financially prudent than renting, thanks to the state's low cost of living and attractive property prices. Moreover, Tasmania's property market offers a diverse range of options, from coastal retreats to city dwellings, catering to various preferences and goals.
The positive economic outlook, with steady GDP growth and the potential for rising incomes, indicates that property prices may appreciate in the coming years, making it a potentially profitable investment. Additionally, if you're interested in generating rental income, short-term rentals to tourists and seasonal workers in popular destinations can be lucrative.
However, there are some considerations to keep in mind. Tasmania's smaller population and remoteness may limit market liquidity, making it more challenging to sell a property quickly. The state is also prone to extreme weather conditions, such as heavy rainfall and windstorms, which can result in maintenance costs.
Stricter heritage preservation laws, bushfire-prone areas, and environmental restrictions in some regions can limit your property development options. Non-residents may face higher stamp duty rates, increasing the overall cost of buying a property.
Therefore, while Tasmania offers compelling opportunities for property ownership and investment, it's essential to conduct thorough research, understand the local market dynamics, and carefully assess your goals and the potential challenges before making a decision. Consulting with a local real estate expert can provide invaluable insights tailored to your specific situation.
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.
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