Mainland investors eye Tassie property market

MAINLAND investors are watching eagerly as Tasmania’s property market heads into a bold period of recovery.

Stephen Heraghty (corr.sp.) of Lauderdale has recently bought into Tasmania's real estate market as the Sydney market is over-heated. He is pictured in front of his Hobart Lodge - 395-401 Elizabeth Street, North Hobart.

MAINLAND investors are watching eagerly as Tasmania’s property market heads into a bold period of recovery.

Real estate experts say a shortage of houses is driving up prices with listings across the state selling for tens of thousands above the asking price.

House sales climbed in Tasmania for the third consecutive time in the June quarter and the Real Estate Institute of Tasmania says the comeback is now spreading out from Hobart’s inner city to the outer suburbs and the regions.

Mainland investors are said to be jumping in while the going is good with the number of interstate and overseas buyers in Tasmania’s market climbing to a record level in the July quarter.

More than 200 of the 324 sales in July were to mainland investors — most of whom were first or second home buyers locked out of the expensive Sydney and Melbourne markets.

REIT president Tony Collidge said increased tourism was also driving the boon in property investment from the mainland.

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“For the first time ever mainland investors have contributed to more than 20 per cent of Tasmania’s house sales and most of those buying are moving in rather than renting out,” Mr Collidge said.

“There was not one municipality that did not sell at least one property to a mainland investor last year.”

For example, of the 856 properties that sold to mainland investors in the 12 months to June 30, 71 were in Clarence, 44 in Devonport and 16 in Central Coast.

Former New South Wales resident Steve Heraghty has bought 37 Tasmanian properties since 2006 and says he is seeing signs that the market is turning.

“I bought into the market thinking Tasmania was ready for capital gain and that is coming to fruition,” Mr Heraghty said.

“The Sydney market has become overheated and I decided to purchase more property here including a family home in Lauderdale.”

House sales across the state rose 7.8 per cent over the 12 months to June 30 but climbed by more than 26 per cent in the North-West where houses are selling in under a week.

Last week, more than 100 potential buyers attended an open home in West Hobart. Eighteen made an offer on the property before it sold for $70,000 above the asking price.

The situation was mirrored at an auction in Lindisfarne where a property achieved $80,000 over the reserve price. “A little while ago we were talking about Tasmania’s property market being poised for a comeback. That recovery has now started,” Mr Collidge said.

Poor cousin cashes in on good returns

Nathan Street and Emily Bryan, who have sold their property in Burnie and are going overseas, visit Salamanca. Picture: SAM ROSEWARNE TASMANIA’S North-West is finally enjoying a taste of better real estate times with house sales rebounding dramatically and some properties spending less than a week on the market. After several years of being the state’s poor property cousin, the North-West saw house sales spike 26.5 per cent in the June quarter and 24.4 per cent on the year.Real Estate Institute of Tasmania president Tony Collidge said agents were reporting an increase in buyer confidence.“Fears of job losses saw the market drop but agents are saying that confidence has returned over the last six months with a feeling that the worst is over. People are deciding now is the time to buy in,” Mr Collidge said.Burnie house owner Nathan Street is one investor to be rewarded for his trust in bricks and mortar.Mr Street, 27, and partner Emily Bryan are off to the UK to live and wanted to sell the property quickly.But they were amazed when it was snapped up within five days and for a good price.“We put the property on the market in May and it was gone in five days,” Mr Street said.“We had been told that reasonably priced houses in good areas were moving but we were surprised at just how fast things happened.”Mr Street bought the house in 2013 and doubled his investment in 18 months.“I did the place up but was always a bit worried I would not make my money back,” he said.“We don’t have to sweat now and can head off without the worry of having a house on the market.” – HELEN KEMPTON

Originally published as Mainland investors eye Tassie property market