Interstate investor Involvement In The Tasmanian market

Interstate investor Involvement In The Tasmanian market

One of the major real estate portals recently provided an information breakfast where their Chief Economist spoke on the real estate activity across the nation; Sydney peaked, Melbourne topping out, Brisbane hot, Darwin a basket case - then he paused and went on to discuss the virtues of investing in Tasmania and was at odds to understand why more investors were not jumping into the Tasmanian market.

Needless to say this is a question I have frequently asked myself. Both Sydney and Melbourne have investor participation/take up within their market places exceeding 50% of all sales, while in Tasmania it is only half that rate.

Real Estate Institute of Tasmania statistics show that mainland buyer participation in the Tasmanian Residential Real Estate market sits at only 18%.  The market place down here is predominantly driven by locals buying and investing in the local market.  What’s more interesting is that only 30% of those interstate purchasers buying real estate in Tasmania are buying them as rental properties.

In 2015 investors acquired 1650 properties at a median price of $240,000.  Vacancy rates are currently at historical lows (below 3%) and yields can be expected to return in excess of 6.8%. Most regions in the Tasmanian market have entered the recovery phase and it is highly probable that the market will see further significant improvement in prices over the next few years.

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