Real estate agency McGrath has selected Launceston for its foray into the hot Tasmanian market, with its founder tipping prices in the city to rise by up to 6 per cent this year off the back of continued migration from the mainland.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Local agent Josh Hart - formerly of One Agency Launceston - will be principal of the McGrath Launceston office.
McGrath founder and executive director John McGrath said that Tasmania is a "key market" for the brand, with negotiations in final stages for the opening of a Hobart office as well.
"Launceston and Hobart really are the two standout markets [in Tasmania]," he said.
The Launceston market was proving particularly attractive to empty-nesters with "Sydney dollars" looking to retire on the Apple Isle, Mr McGrath said.
"I think Tassie has now really stood up and is proving to be attractive to people wanting to be in a rural environment, a leafy environment, at half the price it costs in Sydney and Melbourne," he said.
"Even though Tasmania had good growth [over the pandemic], it came off a very low base."
Mr McGrath tipped growth conditions in major regional markets to remain steady in 2022, with interest rates likely to remain low this year. But the state wouldn't see a repeat of the double-digit price growth experienced in 2021, when the median house price in the Launceston local government area increased by more than 30 per cent.
"I think we will probably have a good year in terms of continued growth and I think that's extremely healthy. I would cringe at another year of double digit growth [like 2021]," he said.
Growth across the east coast, including markets like Launceston and Hobart, would instead be between 3 and 5 per cent, he said.
Mr McGrath identified South Launceston and Invermay as the two suburbs to watch in 2022.
In South Launceston, proximity to the General Hospital and the Charles Street cafe strip were both value drivers.
"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 400 square metres," he said.
Invermay's proximity to future educational facilities meant there was plenty of upside there too, according to Mr McGrath.
"A $344 million 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," he said.
Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content:
- Bookmark www.examiner.com.au
- Make sure you are signed up for our breaking and regular headlines newsletters
- Follow us on Twitter: @examineronline
- Follow us on Instagram: @examineronline
- Follow us on Google News: The Examiner
Jack Needham
Jack has been writing about real estate since 2015, covering residential and commercial property markets throughout Australia for the likes of Smart Property Investment and Domain. He has also spent time in the United States researching real estate trends, with a focus on housing affordability issues, for the California Association of Realtors.
Jack has been writing about real estate since 2015, covering residential and commercial property markets throughout Australia for the likes of Smart Property Investment and Domain. He has also spent time in the United States researching real estate trends, with a focus on housing affordability issues, for the California Association of Realtors.
