Strong economy driving state’s housing

by Duffie Osental08 Nov 2019

The most recent data from Tasmania showed many key indicators came in at stronger levels than the rest of the nation, according to the latest MyState Tasmanian Economic Update.

Melos Sulicich, MD and CEO of MyState, said the growth recorded over the quarter has translated to a “particularly strong” residential housing market.

“Tasmanians are benefiting from higher housing prices, particularly in Hobart, where dwelling values increased 2.6% for the year to 31 October 2019,” he said.

“This was unlike other state capitals which experienced falling dwelling values over the period.”

“[And] while Tasmanian mortgage applications decreased 5.3% over the year to 30 June 2019, this was the smallest reduction for any state, with NSW applications down 12.6% and Victorian applications down 10.4%.”

Sulicich also said the construction sector “remained buoyant” with the total value of construction work increasing. Tasmania’s 16% year-on-year growth to 30 June 2019 was the largest increase for any state – and building approvals in Tasmania have continued to grow.

“Hobart and regional Tasmania residential housing’s short time-on market, coupled with growing residential construction demonstrates the positive demand for housing and a shortage of housing in the state,” he added.

Housing affordability has also continued to attract migration from interstate and overseas, and Tasmania’s population grew to 533,308 at 31 March 2019, up 1.2% in 12 months.