Tasmanian home building approvals on a downward trend: Herron Todd White

Building approvals in Tasmania are on a downward trend and lower than at same time last year according to Herron Todd White.

Herron todd White's latest market report for Tasmania who attributes market cooling to the decrease of the First Home Builders Boost (FHBB) grants, reduced from $20,000 on 31 December 2015 to $10,000 on 1 January 2016 for first home buyers or builders of new residential dwellings.

HTW said some land developers anticipated this cooling towards the end of 2015 and were attempting to bring forward demand with advertised incentives such as new cars and gift vouchers.

"Incentives were also extended to the building industry and are still being offered," the report said.

The residential property market continues to experience small annual increases in sales volumes across the state and in some areas, stock shortages have seen some capital growth in the major population centres.

"Statewide centrally located suburbs that contain a good range of facilities, larger infrastructure such as shopping centres, educational and health institutions and public transport tend to be popular with renters and purchasers alike and are viewed as having the best capital growth potential. 

"Kingston, Howrah, Blackmans Bay, Glenorchy, New Norfolk and Sandy Bay are suburbs where the greatest sales volumes have occurred recently in the south, while in the north the suburbs of Riverside, Newstead and Newnham have experienced the greatest recent volumes of sales. In the north-west region, Devonport has seen the greatest number of sales."