Lifestyle, affordability at core of John McGrath’s Tasmania strategy
Real estate veteran John McGrath is hoping to cash in on Tasmania’s strong house price growth by opening the company’s first offshore business in Launceston.
Real estate veteran John McGrath is hoping to cash in on Tasmania’s strong house price growth by opening the company’s first offshore business in Launceston, with a McGrath office in Hobart expected to quickly follow suit.
However, the founder of McGrath Estate Agents, stresses that in the short term houses are a better option for purchase in Tasmania than apartments, as the bulk of Sydney and Melbourne buyers aiming to relocate to the Apple Isle are families looking for extra space.
“The number of friends and clients I have investing in Tasmania is growing. They like the lifestyle and are sick of the Melbourne and Sydney prices, they can buy property for half the cost in Tasmania,” Mr McGrath told The Weekend Australian.
Despite the recent price growth across Tasmania, Mr McGrath stresses that it is off a low base, adding that there is still plenty of upside.
“Absolutely there are lots of opportunities, Launceston has a median value of around $450,000, compare that to Sydney, Melbourne or Brisbane.
“If you are looking to put a dollar in the Australian real estate market, there’s nowhere in the medium or long term better than the Tasmanian market.”
“You can still make money. If you look at what has happened on the mainland, house prices have jumped significantly over apartment prices and that will be replicated in Tasmania.”
Given there are many empty nesters moving to Tasmania, particularly from Sydney and Melbourne, Mr McGrath predicts that Tasmanian apartment prices will also start to increase over the ten-year term as the over-60s look to downsize to units.
For now he advises that houses will outperform units over the next five to ten years, adding that prospective buyers in Tasmania should purchase a house in the best possible location that they can afford. He believes Hobart and Launceston are great places to invest and advises mainlanders not to buy anywhere too remote.
Mr McGrath says he is in advanced talks to bring the McGrath banner to Hobart, as Tasmania’s property market continues to fire.
“We have seen that safe lifestyle destinations have become paramount in our choice of where and how we want to live, and Tasmania will continue to be in the world spotlight as a cultural and desirable lifestyle option for many seeking to relocate,” Mr McGrath said.
Mainlanders entering the Tasmanian market are normally from Sydney and Melbourne, according to Mr McGrath adding that “Brisbane people won’t migrate that far”.
He says Sydneysiders relocating to Tasmania are normally aged over 60 and are empty nesters, whereas Melbourne entrants also comprise younger families looking for a great lifestyle.
Launceston real estate agent Josh Hart will head up McGrath’s inaugural Tasmania office.
McGrath Launceston will service the city of Launceston and surrounding suburbs from Dilston in the north, Youngtown in the south, Riverside in the west and St Leonards in the east.
Launceston sustained a 23 per cent jump in median house values to $445,000 to September 2021.
Mr Hart says the suburbs of Legana, Perth, Longford, St Leonards and Hadspen, will show growth due to affordability for both families and investors within 15-20 minutes of the Launceston CBD.
“We cannot keep up with the appetite for properties in our region,” he said. “If we compare to 10 years ago on the amount of available properties to purchase, we’re 70 per cent less now, than in that period. This will ease slightly over the coming years as more land is released and building works completed, but with the population growth of buyers relocating to Tasmania, expect a competitive environment to secure a property.”
Mr Hart has just hit a suburb record for selling 103 Correa Drive, Relbia for $1.952m. The three-bedroom property on more than four hectares included a floodlit tennis court.
The property is located close to the popular Josef Chromy Wineries and is about 9km from Launceston. The house has views to Scout Island.
John McGrath’s top Tasmanian picks
HOBART:
Blackmans Bay
Blackmans Bay’s horseshoe shape means 90 per cent of homes in this lovely quiet beachside community have sweeping views or easy access to the suburb’s popular dog beach. The CBD is 15 minutes’ drive up the Southern Outlet and the local Bayview Market has a Hill Street Grocer and all the essentials. Six-figure renovator’s delights still exist among the million-dollar mansions, if you’re quick.
Lutana
Lutana enjoys all-day sun and views of the River Derwent. Just as attractive is its sub-$550,000 median price point – a heavy discount on its more expensive neighbours New Town ($988,000) and Moonah ($620,000). The Hobart CBD is less than 10 minutes’ drive and within 2km are the New Town sports fields, a golf course, shops in Moonah and waterfront recreational facilities and walking trails at Cornelian Bay.
LAUNCESTON:
South Launceston
On the city fringe, South Launceston has recorded almost 25 per cent growth in values in the past 12 months, yet median house values are $450,000, which buys a two- or three-bedroom original cottage on 400sq m. Conveniently located, it has easy access to buses,
local shops, the Launceston General Hospital and is home
to the popular Charles Street cafe strip.
Invermay
Within walking distance of the popular AFL turf of UTAS Stadium and less than five minutes from Launceston’s CBD, Invermay will be a future hub of cultural, educational and recreational activity. A $344m University of Tasmania Inveresk campus is under construction and due for completion in 2024 and the median house price is $457,000, suggesting there’s room for growth for savvy investors.
SOUTHEAST TASMANIA:
Glen Huon
A well-kept Huon Valley secret with rolling hills and pastures, 45 minutes south of Hobart, the Glen Huon is a picture of Tasmanian tranquillity. The Bruny Island Cheese Company has a new dairy and artisan shop, and the lifestyle blocks remain untouched by subdivisions and new housing, which might explain why there have only been eight sales in the past 12 months.
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