Tasmanian Business Reporter September 2018
Welcome to the September edition of the Tasmanian Business Reporter. After a crazy week in Federal politics, this month you'll read about the Tasmanian Chamber of Commerce's request to new Prime Minister Scott Morrison for action on more than $133 million of promises made to Braddon in July's by-election. You'll also find details of Tasmania's construction boom, which is predicted to continue for the foreseeable future, the launch of I-PREP, a University of Tasmania program set to align businesses with talented international students and a powerful column from TCCI Chair Susan Parr reinforcing the Chamber's call for local council amalgamation.
Welcome to the September edition of the Tasmanian Business Reporter.
After a crazy week in Federal politics, this month you'll read about the Tasmanian Chamber of Commerce's request to new Prime Minister Scott Morrison for action on more than $133 million of promises made to Braddon in July's by-election.
You'll also find details of Tasmania's construction boom, which is predicted to continue for the foreseeable future, the launch of I-PREP, a University of Tasmania program set to align businesses with talented international students and a powerful column from TCCI Chair Susan Parr reinforcing the Chamber's call for local council amalgamation.
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PROPERTY MATTERS<br />
<strong>Tasmanian</strong> <strong>Business</strong> <strong>Reporter</strong> - SEPTEMBER <strong>2018</strong> 12<br />
Summer a time of rental demand<br />
Scott Newton<br />
Property Matters with<br />
Knight Frank<br />
Department Manager for the Residential<br />
Property Management team, Robbie<br />
Yeoland, gives a synopsis of the<br />
residential rental market in Tasmania.<br />
SINCE the beginning of <strong>2018</strong><br />
there has been a tremendous<br />
amount of media coverage regarding<br />
Hobart’s rental crisis.<br />
During the summer months<br />
we experience our greatest<br />
demand for rental accommodation<br />
in Hobart due to a<br />
number of factors. These include:<br />
-<br />
• families and individuals<br />
moving from interstate at the<br />
end of the school year;<br />
• students coming into the<br />
state and moving from the<br />
north to attend the University<br />
of Tasmania prior to semester<br />
starting in February;<br />
• overseas migrants coming<br />
to Hobart under skilled migrant<br />
visas; and<br />
• sea-changers or others<br />
seeking a new lifestyle.<br />
We have also seen a decrease<br />
in the number of rental<br />
properties due to the popularity<br />
of Airbnb with investors<br />
capitalising on their investment<br />
potential for the strong<br />
demand in holiday accommodation<br />
with travellers.<br />
According to the website<br />
insideairbnb.com there are<br />
859 entire homes/apartments<br />
listed on Airbnb in Hobart<br />
alone and 3,400 entire homes/<br />
apartments in Tasmania.<br />
While Airbnb has had some<br />
effect on the number of available<br />
properties for rent there<br />
are other factors that contribute<br />
to a shortage of affordable<br />
accommodation.<br />
These include:<br />
• rising rental prices due<br />
to strong interest in Hobart’s<br />
property market with many<br />
mainland investors wanting<br />
A number of factors contribute to Hobart’s seasonal increase in demand for rental<br />
properties including the return of university students.<br />
to enter the local market;<br />
• good returns on investment<br />
compared to other capital<br />
cities;<br />
• an increasing population<br />
– according to the Australian<br />
Bureau of Statistics (ABS)<br />
Hobart has had the fastest<br />
population growth in the past<br />
six years compared to other<br />
capital cities; and<br />
• a shortage of public housing.<br />
The Launceston market has<br />
seen similar trends with low<br />
stock levels and high demand<br />
for quality homes.<br />
This has put upward pressure<br />
on rents with most agencies<br />
experiencing vacancy<br />
rates under 1%.<br />
The ABC reported in July<br />
that the number of people<br />
waiting for public housing<br />
had increased to 3,412 and<br />
the wait time was about 18<br />
months.<br />
Earlier this year we experienced<br />
an extremely high demand<br />
for rental properties in<br />
the price bracket up to $400<br />
per week with up to 100 people<br />
turning up to property<br />
viewings and open homes.<br />
Vacancy rates in Hobart at<br />
this time of year were sitting<br />
at 1.4% and some agencies<br />
reported vacancy rates at less<br />
than 1%.<br />
Since late March, the market<br />
has cooled off and the<br />
level of demand for similar<br />
properties has diminished<br />
with vacancy rates currently<br />
at 1.6% in Hobart.<br />
This equates to only a<br />
handful of vacant properties<br />
at any given time during the<br />
period.<br />
The above figures clearly<br />
show that demand for rental<br />
properties in Hobart is seasonal<br />
with the greatest demand<br />
in the summer months.<br />
PROPERTY VIEW<br />
SEPTEMBER <strong>2018</strong><br />
For sale by expressions of interest<br />
STRONG STREET EXPOSURE<br />
130 Brighton Road, Brighton<br />
Outline indicative only<br />
• Light industrial property with strong exposure<br />
to Brighton Road<br />
• Land area of 5,000 sqm* with dual access<br />
from Brighton Road and Augustus Road<br />
• Large clearspan workshop of 450 sqm* with<br />
mezzanine of 80 sqm* and showroom/offices/<br />
amenities of 200 sqm*<br />
• Extensive hardstand, fully fenced and includes<br />
vehicle wash bay and on-site car parking<br />
• Short term leaseback to Onetrak provides<br />
holding income for developers or owner<br />
occupiers – rental of $61,500 net (*approx)<br />
Outline indicative only<br />
Ian Reed 0419 670 501<br />
Matthew Wright 0458 290 588<br />
View at KnightFrank.com.au/4401086<br />
Sold<br />
OCCUPY, INVEST, DEVELOP<br />
94 Grove Road, Glenorchy<br />
Sold<br />
PREMIER CBD DEVELOPMENT SITE<br />
179 Macquarie Street, Hobart<br />
SOLD<br />
• Large holding; land size 1.7 ha (approx)<br />
• Building area 4,615 sqm (approx) over all<br />
tenancies<br />
• Stoneman’s lease three years remaining plus<br />
two options of five years - long standing tenant<br />
leasing 40% of the site<br />
• Opportunities for remaining site include<br />
retaining existing month-by-month tenant, part<br />
or full owner-occupancy, further development<br />
(STCA)<br />
• Two street frontages to Grove Road<br />
SOLD<br />
• Iconic site, rare opportunity<br />
• DA for 30 m, 202-room hotel<br />
• Macquarie Street frontage of over 41 m,<br />
land area 2,162 sqm (approx)<br />
• Surrounded by significant hotel and<br />
commercial assets<br />
• Zoned ‘Central <strong>Business</strong>’, CBD gateway<br />
location<br />
• Potential for residential/serviced apartment<br />
conversion (STCA)<br />
Outline indicative only<br />
Richard Steedman 0408 559 046<br />
Ian Reed 0419 670 501<br />
View at KnightFrank.com.au/3582342<br />
Hayden Peck 0412 766 395<br />
Scott Newton 0409 186 261<br />
View at KnightFrank.com.au/4342530<br />
5 Victoria Street, Hobart 41 York Street, Launceston Shop 8, 48-54 Oldaker Street, Devonport<br />
P: 03 6220 6999 P: 03 6333 7888 P: 03 6424 3568
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