State of Markets – TAS January 2012

TASMANIA

Fast Figures

• $281,000 – median house price, Moonah
• $241,000 – median unit price, Moonah
• 69% – five-year growth in units, Moonah

Tas confidence flagging, survey shows
A new survey has found that confidence in Tasmania’s property market is lower than in any other state or territory.

The inaugural Property Council/ANZ Property Industry Confidence Survey saw 55 per cent of September’s respondents expecting Tasmania’s economic growth to be weaker or significantly weaker in the future.

According to Property Council (Tasmania) executive director Mary Massina, “When compared to other states and territories, Tasmania’s confidence really has hit rock bottom.”

Ms Massina said the lack of confidence was encouraged by a lack of progress on key government reforms.

Over 67 per cent of survey respondents saw the state political environment as a significant influence on their investment decisions.

This was closely followed by domestic economic conditions (58.4 per cent) and the federal political environment (33.6 per cent) as influences.

“Tasmania’s political environment and weakening economic growth, combined with barriers such as planning, development decision making and general business conditions has had a lethal effect on the Tasmanian property industry’s confidence,” Ms Massina said.

“Despite the release of the state government’s Economic Development Plan, which was supposed to provide a clear strategy for economic growth, the property industry – Tasmania’s biggest private sector industry – isn’t feeling the love.”

Prices fall in Hobart
Hobart’s housing market has seen falling prices and this is unlikely to pick up, according to RP Data.

The latest RP Data/Rismark house price index showed Hobart dwelling prices fell by 9.1 per cent for the 2010/2011 year.

The decline in house prices has accelerated over the past three months, with Hobart dwelling prices down 5.8 per cent.

RP Data’s head of research, Tim Lawless, said the key reasons for Hobart’s weak housing market included a low rate of migration and lack of job creation.