A moving market as sales increase in Tasmania



Is Tasmania waking up? That is a question on many an investor's lips. Always considered as being backwards in comparison to her neighbouring mainland states of Australia, the locals really know that saving the best until last is smarter!

Such it has been with Tasmanian property markets. Low cost in all sectors of real estate, including the rental industry have provided Tasmanians with affordable housing solutions. It seems all good thing come to an end, and although this is true for the house buyer, the investor had better get on board if they don't want to miss the boat.

The last few years have seen a repeated rise and fall in the real estate market in Tasmania. Will this pattern continue, or is Tasmania going to rise in value and even exceed the average of its sister states throughout Australia?

This question is at the heart of many considering investing in the beautiful island south of mainland Australia. And naturally so. For the last few years the price of land in Tasmania has steadily risen and yet there have been losses when sudden turns in market values have dropped after reaching previously unknown heights. One minute you can't buy property in Tasmania, the next thing you know, you can't sell it!

There is still a trend to be fair in this fair land, and as the fervour dies down, the more sensible and reasonable prices return. Like all property markets, Tasmania is subject to it’s share of restrictions and while sellers are keen to cash in on high pricing, the inevitable reality sets in and the limitations that to some degree govern the overall value of real estate in any area, awaken buyers to the facts. These facts are the norm in any area on earth.

Let’s look at a few major players…and then we’ll look at some extra-ordinary influences that may well over-ride the dictation set by geographical influences….

*Distances from centres

* Freight costs

*Harsh Climate

*Employment Opportunity

*Services in rural areas

*Changing world markets & trade

*Boldness and foresight in investing or lack of it

*Glutting of the market

These are a few issues which buyers look at and effect the real estate market in all regions of the globe, often limiting real growth. But Tasmania has a few tricks up her beauty clad sleeve. One very attractive fact in her favour is water. As mainland Australia continues in severe drought conditions, the thought of plentiful supplies of the world’s most overlooked but precious commodity…water, act as a magnet to folks tired of stuggling against the drying odds. Although Tasmania does have it’s share of water problems, it is considerably in better shape than the rest of the country. In fact, the rest of the world. Which brings us to another aspect that will set an uphill trend for the real estate market.

Tasmania has the image of being clean and green…far from the hustle and bustle and …pollution that plagues most major centres around the globe, and this alone is a guarded secret of the Tasmanians that is enough to attract a steady flow of outsiders wanting to put their roots down into Tasmania’s fertile soil. With land prices rising throughout mainland Australia the option of this cool and wet island has become a likely substitute for folks wanting to buy within their budget.

People are resigning to quality being measured in different ways, and the property market will adjust as more people move to Tasmania over the next few years.

In all, just these few examples are behind a growing real estate market. Once investors see the trend it will be on for young and old alike as people scramble to buy their bit of this quiet isle.

But will folks in Tasmania sell?

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