With good rental returns, and an under-priced market, picturesque Tasmania (more specifically, Hobart) is proving to be a popular choice for property investors in 2017.
What’s more, suburbs that wouldn’t get a look in 25 years ago, are now starting to turn heads due to a significant shift in the economy, equating to employment opportunities, and a booming tourism industry.
Here are five Tasmanian suburbs that mum and dad might not have invested in 25 years ago, that could offer a sound opportunity for investors, and first-time home buyers.
West Hobart
A few kilometres from Hobart’s CBD resides the suburb of West Hobart.
Boasting spectacular views of the Derwent River, this highly sought-after suburb has access to a rich plethora of amenities – shopping precincts, a school, adjacent to a few good restaurants in neighbouring North Hobart, a cinema, Caldew Park, and Knocklofty Reserve. As such, locals consider it as “the heart of Hobart living.”
The West Hobart of today, which fetches a median house price of $625,000, is a far cry from what your parents may have encountered on their property journey 25 years ago. Houses back then fetched an average $128,250, and the area had a reputation of being quite industrial, and home to a red light district at one point.
Tolmans Hill
While not the best performer in regards to investment opportunity, Tolmans Hill is still voted among locals as the greatest suburb in Greater Hobart.
It offers panoramic views of the Tasman Peninsula, the peace and quiet the suburban life, and a decent stretch of dining options.
The suburb was zoned for residential use as late as the 1980s. Despite this, it was considered an area that was not ideal for development – due to steep slopes and the cost of land development.
The desire to build property in Tolmans Hill only gained traction in the latter half of the nineties. That is, your parents would have been greeted with bushland and not much else, had they been looking for property in Tolmans Hill 25 years ago.
South Hobart
South Hobart has also been pegged as a great investment by property experts due to its close proximity to Hobart’s CBD.
This heritage-laden suburb enjoys a clear view of Mt. Wellington, and boasts a variety of amenities — including schools, restaurants, cafes, and walking tracks — and, for the beer lovers, it’s home to the famed Cascade Brewery.
Now could be a good time to invest as Hobart City Council recently approved its plans for a large-scale residential development within South Hobart – an opportunity that was wasn’t available 25 years ago.
Warrane
As an affordable option that is a mere five kilometres from Greater Hobart, Warrane boasts a median house price of $277 500.
The suburb has offered very good property investment returns, compared to the rest of Tasmania, giving investors a capital gain of 15.97% to date.
As such, properties in this landlocked area are in high demand.
Once a suburb that was predominantly made up of housing commission blocks, this up-and-comer has gentrified over the years making it a far more appealing investment.
Mornington
Another suburb that’s been dubbed as ‘up and coming’ with potential for long-term growth is Mornington.
A mere seven kilometres from Hobart’s CBD, Mornington has a mixture of residential, industrial and commercial properties, is set among leafy hills and boasts river views, and is deemed a delight for families.
Affordable, and on the cusp of some of Hobart’s prestigious waterfront suburbs, it also boasts access to good schools, emergency services, medical facilities, and is close to one of the largest shopping centres in Hobart.
While a steal by today’s standards, it may not have been considered as such 25 years ago. Namely, as part of the Clarence city council, Mornington, and surrounding suburbs, did not have proper sewerage infrastructure until the late nineties.
