The relocation of the University of Tasmania coupled with rising property prices on mainland Australia is contributing to Launceston’s economic growth, an industry representative has declared.
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The city is the biggest improving area in a Tasmanian real estate sector that is on track to hit record sale results.
The Real Estate Institute of Tasmania June quarter revealed Launceston had a 14.9 per cent increase in the number of sales for the first half of 2017.
Institute president Tony Collidge said Tasmania could achieve more than 11,000 sales worth almost $4 billion – a feat not achieved for a decade.
He attributed the relocation of the University of Tasmania to Inveresk as providing economic growth, optimism and “endless opportunities” for the region.
“The impact of that alone and how it will change Invermay – it will restructure the city,” he said.
Mr Collidge said Tasmania’s property prosperity was being partly driven by skyrocketing prices on the mainland.
“We don’t realise how big Tasmania now is on the mainland… people are becoming more aware of our marketplace and people are really considering with the rising prices on the mainland, looking at Tassie,” he said.
The value of property in Tasmania is also on the rise.
The median price for Launceston was $292,000, up 4.3 per cent on last year.
But while the sector is traversing time of optimism Mr Collidge said a political climate could change that.
“A change of government very well could turn things upside down if we ended up with a hung parliament because you’re not getting decisions made,” he said.
But with more investors and an increasing population, Mr Collidge said it was understandable for the state to suffer “growing pains”.
He had quite an analogy for the issue it was causing as pressure increased on Tasmania’s roads and health system.
“I regard the state as being almost like a three-year-old child that all of a sudden has grown,” he said.
“It’s now a four-year old but it’s still stuck in a three-year-old’s clothing.”
Sandy Bay is the most expensive suburb in Tasmania with a median price of $851,500; followed by Blackstone Heights at $543,000 and Spreyton at $464,000.
It’s now a four year old but it’s still stuck in a three year old’s clothing.
- Tony Collidge
Queenstown has the lowest median price at $77,000.
