Tasmania Accommodation Development Report 2018
The substantial growth of the visitor economy, culminating in increasing tourism numbers, which are welcomed, was always going to lead to folks wanting to move to our idyllic state – with clean fresh air, space, world class scenery, amenity, and a general sense of safety. For some of our leaders, their response has been to turn people away, which is not smart and doesn’t lead to world class cities nor desperately needed growth in jobs.
The hotel market has delivered improved confidence in our state; a tenuous yet essential component for continued economic growth. Yarns, photos, and flyovers with virtual reality and sophisticated computer modelling have created a buzz with the outcome, far greater interest and meaningful conversations espousing the virtues.
The Tasmanian property industry is experiencing significant growth, delivering the necessary good performance for investors, construction teams, and the service industry who ensure projects get off the ground.
However, challenges have also presented themselves as a result with a handbrake on housing supply leading to troubled times for those who can’t break into the market.
In June 2018, the residential vacancy rates in Hobart were the lowest in nation at 0.7%. At 15.1%, median asking rent growth in Hobart from March 2017 – March 2018 was the highest capital city in the nation. And in May 2018, the average percentage of wage spent on rent in Hobart, equates to the least affordable city in Australia.
Consequently, Tasmania must plan for growth by investing in infrastructure and increasing housing supply to ensure diversity of product to the market. The Tasmanian Division is supportive of the State Government’s soon to be released concept of a 30 Year Infrastructure Plan and the infrastructure pipeline. We have identified important areas for reform in our research and advocacy document – ‘Removing the Regulatory Handbrake – Seven Steps to increasing housing supply’. A suite of ideas, which aims to encourage decision makers and civic leaders to consider how they will support and harness further investment potential into the future.
Property Council Members have contributed significantly to the new development in Hobart and more broadly across Tasmania. Their work in designing, planning, engineering, financing, constructing, selling and promoting exemplary projects has ensured that investment and development has become reality, catering for a growing interest in our island state. Long may this continue.
Brian Wightman
Executive Director
Property Council of Australia – Tasmania Division