Property Market Remains Buoyant
The 2018 TCCI Tasmania Report was released on Monday, 3 December at events across the state. Bank of us CEO and TCCI Deputy Chair Paul Ranson made the following comments:
“Tasmania’s property market is currently reflecting stronger ‘underlying’ demand driven by faster population growth and greater confidence on the part of local buyers,” Mr Ranson said.
“Since investors represent a smaller proportion of the property market in Tasmania than other states, some of the factors contributing to the softer conditions in mainland markets are likely to weigh less heavily in Tasmania.”
However, Mr Ranson noted the strength of the market has seen an ongoing escalation in rents, particularly in Hobart.
“For low-income households, Hobart is now the least affordable capital city in Australia. Conversion of part of the rental housing stock to short-stay tourism accommodation appears to have exacerbated this problem.”
Mr Ranson said overall, Tasmania’s economy remains strong.
“At Bank of us, we have recorded our fastest growth in a decade during the 2017-18 financial year and for the first time in nine years grew at a faster rate than the national average.
“In real per capita terms, Tasmania’s economy grew faster than that of any other state or territory in 2017-18, the first time that has occurred since the current annual series of state economic growth estimates commenced in 1989-90.”
Mr Ranson said by industry sector the biggest contributors to overall economic growth during the past year were health care and social assistance; mining; manufacturing; construction; and professional, scientific and technical services.
“The findings from the previous three Tasmania reports have highlighted our strengths and our weakness, and the long-term challenges in improving our health, education and employment.
“With the launch of Bank of us, and with the report findings in mind, we are developing our own community initiative to help build strong community connections and give Tasmanians the opportunity to be the best they can be.
“Tasmania is a wonderful place to live and at Bank of us we want to help build vibrant, productive and self-sustaining communities.”