State of Markets – TAS October 2012

TASMANIA

Fast figures

• $195 million: investment in Tasmania’s road and rail network, 2012/2013 (state government)
• 17%: forecast population growth by 2027 (Residential Development Council)
• 54 days: average time on market for houses, greater Hobart (RP Data)

Tas fiscal efforts a ‘mixed bag’ for investors
Tasmanian government attempts to meet fiscal targets are proving to be a ‘mixed bag’ for property investors, according to minister for finance Scott Bacon.

While forecasts underestimated government spending in 2011/2012 by $95 million, this was due to the funding of the Macquarie Point railyards remediation project and similar initiatives set to rejuvenate the territory – potentially a benefit for investors.

The public works improvements are “the result of the carry-forward of funds committed for various projects, such as the Royal Hobart Hospital redevelopment and the receipt of $104 million from the sale of TOTE Tasmania,” Mr Bacon said.

Less favourable for investors was a decrease in the public service sector by 945 full-time employees in 2011/2012, although Department of Education employment numbers are subject to seasonal variation across the school year.

Investors urged to consider building
Investors are being urged to consider building new properties, with the stars aligning for this form of investment in Tasmania, Premier Lara Giddings said.

“With lower interest rates, lower land prices and competitive pricing, now is a great time to consider building your dream home,” Ms Giddings said at the opening of Wilson Homes’ new display centre at Cambridge.

“Tasmania’s housing affordability has improved in every quarter since December 2010 as interest rate reductions coupled with softer price growth improve buyers’ purchasing power,” she said.

Currently, the state government is working with the building and construction industries to help stimulate activity.

Initiatives have included a $100 million affordable housing project at Brighton.