Tasmania Real Estate Market & House Prices
Tasmania real estate market is one of the most buoyant in Australia. Tasmania has long been a popular destination for those seeking a sea change or tree change, and with its natural beauty and relaxed lifestyle it is easy to see why.
The island state has much to offer, from its stunning beaches and coastline, to its rugged mountains and pristine rainforests. The real estate market in Tasmania is both varied and affordable, with something to suit all budgets.
Investors are seeing Tasmania as a good place to invest in property. With strong growth prospects and relatively affordable prices, Tasmania is an attractive option for those looking to buy an investment property.
If you’re thinking of investing in the Tasmania property market, it’s important to do your research first. There’s a lot of opportunity for investors, however data-driven market due diligence is a must before moving on with property search.
The heatmap above visualises yearly house price changes in Tasmania. The heatmap is shaded from lighter blue (indicating lower growth) to darker blue (indicating higher growth).
One way to gain a more thorough understanding of which areas may have a lower risk is by toggling the “Lower Risk” view of the heatmap. This view shades areas with a lower risk score more prominently for a clearer visualization of the data. Learn more about HtAG’s property market risk criterion here.
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Snapshot of Key Metrics & Market Comparison Table
By using the toggle buttons below, we can view a snapshot of the Tasmanian market that showcases the major real estate metrics and data such as price, median rent, and indicative yield. The snapshot is provided for both houses and units. Houses are free standing houses (excl. townhouses and villas). Units are apartments, studios, flats, units (excl. unit blocks).
Buy
2BR
3BR
4BR
5BR
Rent
2BR
3BR
4BR
5BR
Yield
2BR
3BR
4BR
5BR
Buy
1BR
2BR
3BR
Rent
1BR
2BR
3BR
Yield
1BR
2BR
3BR
You are able to drill down to LGA-level data and charts which visualise these 3 key metrics as well as other important indicators in the table that follows.
Enable additional columns in the table by clicking on the buttons underneath it. Toggle between LGA and Suburb views in the table’s navigation bar. The data in the table represents key real estate metrics as of the current quarter and is updated on a monthly basis i.e. 3 times per quarter.
Clicking on an LGA or Suburb links in the table will take you to the relevant LGA page where you can drill-down to the next level of data.
Tasmania House Prices
Prices are rising and there is strong demand for properties, especially in the capital city of Brisbane. But, it’s not just the capital
There’s no doubt about it – Tasmania is a very desirable place to live. This increased demand for property is reflected in Tasmania’s house prices, which have been steadily increasing over the past few years.
Affordability is a major issue in Tasmania, with the ratio of house prices to incomes being among the highest in the country. This is a particular problem for first home buyers and low-income earners who are being priced out of the market.
The typical house in the Tasmania have seen plateaus with no significant movement other than up over the past 10 years. Price growth accelerated since the last quarter of 2019, with typical prices for houses aiming to reach the $800,000 mark. The TAS units increased to an all time high of $657,000 in 2022.
The interactive chart below shows typical price for both houses and units as well as the sales volume per quarter. Toggle additional views of prices per number of bedrooms by clicking on BR2, BR3 etc underneath the graph. You can also drill down to LGA charts using the dropdown in the chart navigation bar.
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There is also a lack of housing supply in Tasmania, which is putting upward pressure on prices.
This means that if you’re thinking of buying a house in Tasmania, you need to be prepared to pay a bit more than you would have a few years ago. Of course, Tasmania’s property market is not immune to the occasional downturn, but overall it is a very stable market.
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Tasmania Rental Prices
Rental prices vary depending on the location within Tasmania. Hobart is the most expensive city to live in, followed by Launceston and Devonport.
In general, prices are higher in the capital city of Hobart, and in coastal areas. Holiday rentals are usually more expensive than regular rentals.
Median weekly rent prices for houses in TAS have been on a steady increase since 2015 and plateaued at $443PW in 2021-2022. Rent prices for units have increased steadily over the years and are now at $427PW.
Use the interactive chart below to explore the rental prices in Tasmania in detail.
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Investment in the Tasmanian rental market is seen as a relatively safe and secure option, with strong population growth and low vacancy rates driving demand for rental properties.
With strong demand for rental properties and limited supply, some consider Tasmania a landlord’s market. However, with prices rising at a relatively slow pace, it is an affordable market for renters.
Gross Yield on Investment Properties in TAS
Investment property yields can vary widely depending on a number of factors, including the location and type of property, the current economic conditions, and the level of competition from other investors.
Gross yield is the percentage of the purchase price that the investor receives in income each year. In Tasmania, gross yields for property investment ranges from 2.4% to 7.1% depending on the location. Lower priced LGAs typically offer higher yields. However, there are exceptions to this rule.
At a high level Gross Yield in TAS reached its’ local peak of 4.29% in 2018. Since then the gross yield dropped further to 3.5% in 2022 Q1.
Explore the chart below to visualise the gross yield trends for TAS LGAs in detail.
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Gross yield is a useful metric for comparing different investment properties, but it is important to remember that it does not take into account factors such as maintenance costs, vacancy rates, or tax liabilities.
Despite these limitations, gross yield can still be a valuable tool for assessing the potential return on investment from a property in Tasmania.
To maximise your chances of achieving a high gross yield on your investment property, it is important to do your research and select a property that is likely to be in high demand from renters.
It is also important to be aware of the potential costs associated with owning and managing an investment property, such as maintenance, repairs, insurance, and vacancy rates.
Tasmania Property Type Demand Profile
Generally speaking, Tasmania has seen strong growth in its population over the last few years, which has driven demand for all The most in-demand properties are usually those that are located near the major metropolitan areas, especially in the Hobart region. Properties in the Hobart region tend to be in high demand due to the city’s booming economy and its proximity to other major attractions.
As far as residential property market is concerned, the most in-demand TAS real estate are 3 and 4 bedroom houses, followed by 2 bedroom units. The units are dominant in CBD of urban centres, whereas other LGAs are mostly rural and have 3 and 4 bedroom house preferences.
Use the chart below to understand which property types have the highest demand in Tasmania real estate market.
There is no definitive answer when it comes to the most popular property type in Tasmania, as demand for different types of homes varies depending on location and other factors. However, there are some property types that are more commonly sought-after than others.
One particula popular type of property in Tasmania is coastal real estate. The state’s coastline is world-renowned for its dramatic cliffs, pristine beaches, and quaint fishing villages. It’s no wonder that so many people dream of owning a piece of this paradise.
Whatever type of property you’re looking for, Tasmania is sure to have something to suit your needs. Whether you’re after a rural idyll or a seaside escape, the island state has it all.
Tasmania Buy & Rent Search Index
As the housing market in Tasmania continues to heat up, so does the search for property on the island state. The most popular areas for property searches in Tasmania was Hobart, followed by Launceston, Devonport and Burnie.
The chart below illustrates the trends for “buy” and “rent” online searches in Tasmania. You’ll notice that searches for rental properties have increased over the years. Both “Buy” and “Rent” searches peaked towards the end for 2020 and have since returned to average historical levels.
The black lines on the chart highlight the search index, which is calculated by apportioning the LGA “buy” or “rent” searches to the state average.
The overall search index for TAS is calculated as an average of all LGA indexes. It has historically hovered around 4.0 for houses which is lower than the index in more populated and economically developed states in the country.
There are a number of factors driving the increased interest in Tasmanian property, including the state’s strong economy and low unemployment rate.
Interest in Tasmanian property has seen a dramatic increase in recent years, with a growing number of people looking to buy or invest in the island state.
Tasmania has long been a popular destination for retirees and holiday-makers, but its growing reputation as a great place to live and work is attracting more and more people from interstate and overseas.
The state’s economic performance has been so strong.This has flow-on effects for the property market, with increased demand for both residential and commercial property.
Investors are attracted to Tasmania’s growing economy, and the potential for capital growth in the property market.
Tasmania Property Market Growth Rate Cycles
The Tasmanian property market is somewhat difficult to predict, with long periods of inactivity punctuated by brief periods of heated activity. This can make it difficult for potential buyers and sellers to know when is the best time to enter the market.
However, understanding the underlying cycles that drive the Tasmanian property market can help give you a better idea of when it might be a good time to buy or sell.
The Tasmania property market has entered the growth phase in 2014-2015. The market has been performing well since then, with house prices and rents increasing. The market is expected to continue to grow in the short-term but at a slower rate.
However not all LGAs are experiencing growth with some regional LGAs showing declines in pricing.
Confidence: High, Medium, Low
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The Tasmanian property market is largely driven by economic conditions, both in Tasmania and across the country. When the economy is strong and confidence is high, there is more demand for property, driving prices up. Conversely, when the economy is struggling, demand for property falls and prices drop.
Population growth is also a key driver of the Tasmanian property market. When more people are moving to Tasmania, either from interstate or overseas, they need somewhere to live, driving up demand (and prices).
Supply is another important factor that can impact prices. When there are more properties on the market, buyers have more choice and can be more selective, driving prices down. However, when there are fewer properties available, buyers are more likely to pay a premium for a property they are interested in.
Ratio of Renters to Owners in TAS LGAs
Tasmania is a relatively affordable place to live in Australia, with a high proportion of residents owning their own homes. The latest census data shows that the state has a higher home ownership rate, well above the national average.
The importance of having more owners than renters in a property market is that it gives people a sense of stability. Owners are incentivised to maintain their property and contribute to the community, increasing the appeal of the neighbourhood as a whole.
As a rule of thumb, there should be no more than 45% renters in an area for it to be considered to have a good investment potential. Interestingly the overall percentage of renters in TAS is at 25% which is well below the threshold.
There are a number of factors that contribute to Tasmania’s high homeownership rate. One is the state’s small population, which means there is less demand for rental properties. Another is Tasmania’s strong economy, which has led to increased job security and higher incomes.
The high homeownership rate is good news for Tasmanian families, as it means they are more likely to be able to stay in their homes even if they experience financial difficulties. It also means that there are fewer people competing for rental properties, which has an effect on the rental market.
Ratio of Units to Houses in TAS
Tasmania’s higher ratio of houses to units is a boon for those looking for more space and privacy, and a great way to get more for your money. The island state has a reputation for being a great place to live, and its higher ratio of houses to units is one of the many reasons why.
Increasing ratio of apartments to houses is that apartments are generally more affordable than houses. This is especially true in Brisbane, where the price difference means that more people are opting to purchase or rent an apartment instead of a house.
The increasing ratio of apartments to houses in Tasmania is having a few impacts on the state. However, compared to other states and territories, the overall ratio of units to houses is well under the threshold at with just 12% of dwellings sold being units.
There are several reasons for the higher than average ratio of houses to units in Tasmania.
Firstly, Tasmania has a relatively low population density, meaning that there is more space for houses than in other states. Secondly, the state government has placed a lot of emphasis on encouraging housing development in recent years, which has resulted in more houses being built than apartments.
The high ratio of houses to apartments in Tasmania is good news for those looking to buy or rent a property in the state. There is a greater selection of houses available, and they are often cheaper than apartments.
Tasmania Property Market Socio-Economics
The Index of Relative Socio-Economic Advantage and Disadvantage (IRSAD) is a measurement of socioeconomic disadvantage across regions within a state. It captures the relative socioeconomic position of people living in different areas within a state. The IRSAD scale ranges from 0 to 10, with a higher score indicating greater socioeconomic disadvantage.
Tasmania has a relatively high index of relative socio-economic advantage, which means that it has a higher average income, higher average educational attainment, and lower rates of unemployment than most other states. This is due in part to the fact that Tasmania has a smaller population and a more diverse economy than other states.
0 – 2
2 – 4
4 – 6
6 – 8
8 – 10
However, Tasmania also has a higher than average unemployment rate, and a lower than average median household income. These factors contribute to the state’s high levels of socio-economic disadvantage.
Additionally, Tasmania has a higher than average proportion of residents who live in social housing, and a higher than average proportion of residents who are reliant on government welfare payments.
Conclusion
Tasmania’s real estate market is one of the most buoyant in Australia due to its stunning beaches, mountains, and rainforests, as well as its relaxed lifestyle and affordability. Interest in Tasmanian property has seen a dramatic increase in recent years, due to the state’s strong economy and low unemployment rate.
The most in-demand Tasmanian properties are usually those located near the major cities, such as 3 and 4 bedroom houses and 2 bedroom units. Overall, the state is a desirable place to live, invest, or do business, with strong population growth and high demand for rental properties.
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More about Tasmania Property Market
There are a number of major infrastructure projects that are currently planned for Tasmania. All of these projects are expected to have a significant impact on the state’s economy and will create thousands of jobs during the construction phase. You can find out more about these projects on Tasmania government website.