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Hobart Airport and Battery of the Nation projects tipped to increase house prices

Two major developments slated for Tasmania are predicted to have a significant influence on their respective areas, according to a national report. FIND OUT WHERE TO INVEST >>

Pressure mounts on developers amid Tasmania's housing crisis

TWO projects in Tasmania are set to set property prices soaring in their respective patches, according to a new report.

A national buyer’s agency and research firm, Propertyology, has identified 10 major projects which will have significant influence on property markets in their patches, two of which are in Tasmania.

Hobart International Airport’s $200 million expansion is tipped to double passenger volumes to Tasmania over the next five years.

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Propertyology’s head of research Simon Pressley correlated a 29.4 per cent jump in passenger growth through airports with a 46.3 per cent house price growth in the past year.

“One should not underestimate the enormous potential for increased economic activity through easier visitor access; business travellers, domestic and international tourists, and university students,” Mr Pressley said.

A new report predicts Hobart property prices will increase as the airport expansion comes online. Picture: Zak Simmonds
A new report predicts Hobart property prices will increase as the airport expansion comes online. Picture: Zak Simmonds

“Hobart’s growth in airport passenger volumes over the last five years is a measurement of its spectacular economic growth that drove nation-leading real estate capital growth.”

The median house price sale in the greater Hobart region is $533,550, according to the latest realestate.com.au figures.

The $5 billion Battery of the Nation project slated for Burnie is also expected to drive property demand through the roof. The project, which will use a series of lakes to produce hydro-electricity and pump it into the mainland will require a large workforce.

“Real estate demand in the regional city of Burnie will increase as a result of jobs created by this project,” Mr Pressley said.

Prime Minister Scott Morrison during the announcement of the Battery of the Nation at Cethana Dam and Power Station. Picture: Adam Taylor
Prime Minister Scott Morrison during the announcement of the Battery of the Nation at Cethana Dam and Power Station. Picture: Adam Taylor

Houses are selling for a median of $295,000 in the North West and on the West Coast.

“Every year in every city, there will always be a range of significant projects being developed yet genuine property booms are few and far between,” Mr Pressley said.

“From many years of property market studies, we’ve concluded that the property market impact from major project developments is determined by the scale of the economic benefits relative to the size of the community that it relates to.”

Other projects that are tipped to affect property markets are the Inland Rail Project, which will influence regional communities in Queensland, NSW, and Victoria, the GFG Alliance Steelworks at Whyalla, Western Parkland City in Sydney, the Australian-Singapore Military Training Hubs in Rockhampton and Townsville, a new CBD for Maroochydore, Queens Wharf in Brisbane, the Narrabri Gas Project and the Hells Gate Dam north of Charters Towers.

navarone.farrell@news.com.au

Originally published as Hobart Airport and Battery of the Nation projects tipped to increase house prices

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Original URL: https://www.heraldsun.com.au/news/national/hobart-airport-and-battery-of-the-nation-projects-tipped-to-increase-house-prices/news-story/4abe43a7b8161ce23bb2f39d059f9804