Tasmania Property Market Update April 2020
What has been driving the Tasmanian market?
Well, if I was writing this in February I would have said:
- Improved economic sentiment and outlook under pinned by a continued improved local economy; being one of the best performed in the country,
- Housing shortage,
- Net population growth
- Climate Change Factors
- Strong/growing tourism sector.
However as I sit here pondering the road ahead it is clear that COVID-19 is likely to impact the market significantly and almost certainly to be a historic event.
I think everyone accepts in the short term there will be a contraction. So let’s skip this period. What happens next in, say, six month’s time when the world is ‘back to normal’?
If Tasmania is able to escape the spread of the virus; which at the time of writing is the case; our island’s “Clean Green” persona could fuel the recovery and next wave of population growth much quicker than anticipated as a further population heads south from the mainland states seeking the safer life style on offer. This is the key to a relative quick bounce back of the housing market.
However, on the flip side if the virus takes hold in the state and the borders remain shut for an extended period; clearly the tourism sector will be decimated. The job losses could result in a sharp down ward correction in pricing for an extended period.
We are at the moment seeing B n B properties being released into the long term rental market. This added over 100 houses/units last week alone into Hobart. While this is not unwelcome and hopefully will provide some relief to the rental sector it is likely a sign of things to come
Stay safe all.
Speak with a Tasmania Mortgage Broker today.