Tasmanian real estate market growth has been the best in the country when considering annualised capital gains over the past five years, according to CoreLogic.
The island state has provided 6.6% in capital returns each year since 2015, while real estate prices around Australia plateaued.
While there are many reasons for the high growth in Tasmania, including increased tourism, more commercial and residential developments in Hobart and Launceston, climate change could be another driver, suggests CoreLogic.
Research in 2019 from James Cook University in Cairns, found climate and environment as the top reasons for those who had migrated, or considered migration, to Tasmania. Of 329 survey respondents, over 225 acknowledged climate and weather as a motivation for migrating to the state.
Ron Brooks, Director Raine & Horne Tasmania agrees climate change might have had some bearing on more interstate buyers from the mainland moving to Tasmania. “There is also a school of thought that Australian expatriates living around the world are increasingly seeing Tasmania as a haven away from trade wars, global pandemics and the many other geopolitical challenges currently tormenting many parts of the globe.”
Exacerbating the situation, Ron said Hobart is fast running out of land for new developments due to rapid population growth. Fortunately, Raine & Horne Hobart has just released a significant development, Greenville of Clarence. Lots will start from $177,000, and there are 1200 lots for sale. “There will be 175 lots to be sold as a part first stage, and we expect this land release will appeal to first home buyers, especially given Tasmania’s generous first homer buyer carrots.” The $20,000 First Home Owner Grant (FHOG) is available until 30 June 2020. The FHOG is a one-off payment for eligible first home buyers and builders of new homes.
To make enquiries about Greenville of Clarence, contact Raine & Horne Hobart on 03 6231 000.