Hope for Tasmania despite savaged market
The Tasmanian property market has been savaged by high unemployment and low consumer confidence, according to research from PRDnationwide.
With dwelling approvals falling and house price levels adjusting to a new economic climate, a report compiled by PRDnationwide’s research department shows that Tasmania is experiencing a downturn in the property sector.
Applications for housing finance fell by 3.6 per cent in 2012, confirming that activity has been stunted in Tasmania and buyers are rethinking their options before entering into the market.
However, despite such negative statistics, researchers have uncovered some positive growth in the Hobart municipality.
"The Hobart municipality remained the only region to maintain positive numbers of transactions and median unit price rise," said PRDnationwide research analyst Angus McLean.
The area of New Norfolk also has a strong outlook as a preferred residential location, as the Derwent Valley Council continues a push for an increase of infill developments and an intensification of development in currently zoned residential lots.
PRDnationwide Hobart principal Tony Collidge agreed with the assessment that Tasmania still had valuable offerings for owners and investors in both metropolitan and more rural localities.
"Over the past three years we have seen significant falls in the value of Tasmanian property," he said.
"However, we believe the market has all but bottomed out and is about to turn the corner. This provides a great opportunity for buyers to get into a market where values should start to appreciate.
"Investment properties are providing returns in excess of five per cent and if you're prepared to look around, there are some real opportunities out there. Tasmania continues to provide Australia's most affordable housing at some of Australia's lowest prices."