The Tasmanian property market is cooling with properties sitting on the market for longer and a supply and demand imbalance, says the CEO of a bank based in the Apple Isle.
Paul Ranson (pictured), CEO of Bank of us, a customer-owned bank headquartered in Launceston, said Tasmania had historically experienced periods of strong property growth over a 12-to-15-year period which then flatlined for 10 years or so.
“Time will tell as we have had strong price growth recently, and if interest rates rise significantly, I question whether we will see property prices come back,” Ranson said.
Ranson said Tasmania is no different to any other regional area in Australia – many people had relocated to the state throughout the pandemic.
“This kept our property market buoyant,” he said.
“In Tasmania, Hobart usually starts with the price movement which then flows through to the north and north-west in that order. Launceston is considered one of Australia’s most desirable areas, and with Hobart considered too expensive, it has become very attractive for relocators – it just comes down to a supply issue again.”
Ranson said the broker industry is performing well in Tasmania.
“We are seeing a mix of boutique non-aggregator lenders here and an increase in small lenders,” he said.
“There is still a healthy broker market in Hobart and Launceston is gradually increasing its broker presence.”
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Bank of us has just been announced as the successful provider of the Tasmanian government’s improved home ownership program.
From 1 July, the improved program provides a more generous eligibility and expanded assistance to help locals build or buy their own home with as little as 2% deposit.
“The partnership with the Tasmanian Government is part of Bank of us’ strategy to deliver on its brand promise to be the bank of the community and to help more Tasmanians to achieve home ownership,” Ranson said.
“As a customer-owned bank, we reinvest our profits to benefit our customers and the community. The program provides us with another opportunity to give back to our community by helping more Tasmanians get into their own home.”
Ranson said Bank of us helped improve housing outcomes through other partnerships with like-minded Tasmanian companies.
“We recognised the issues facing Tasmanians in relation to housing affordability and housing shortages and over the years, we have partnered with local builders and developers to provide innovative funding concepts so that more Tasmanians could own their home,” he said.
“With this shared equity program, whether they are a first home buyer or not, and who have been struggling to save a deposit to buy a home will also have the chance to achieve their home ownership dreams.”
The program makes it easier to save for a deposit and reduces the ongoing costs of owning a home because the costs are shared with the director of housing.
