Hobart doesn't have the required new townhouse stock: Saul Eslake

Hobart doesn't have the required new townhouse stock: Saul Eslake
Hobart doesn't have the required new townhouse stock: Saul Eslake

Hobart’s increasing population, boosted by inward interstate migration as the economy improves, was putting pressure on the rental market, independent economist Saul Eslake suggests.

The vice chancellor’s fellow at the University of Tasmania told Fairfax Media there was a lot more confidence in business.

"There is quite a lot of commercial construction and tourism is also doing well,” he said.

“We’ve had an increase in people wanting to live in Hobart … but on the supply side there hasn’t been a great deal in building approvals.”

Eslake said the biggest shortage was for apartments, which make up 8.6 per cent of dwellings in greater Hobart, according to the latest census data.

Demand for rentals saw Hobart’s vacancy rate drop to a record low of 0.3 per cent by December, according to SQM Research, the tightest rental market of any capital city.

The Domain Rental Report shows it also has the country’s highest rental yield for houses – at 5.34 per cent for the December quarter – and the third highest yield for apartments, at 5.52 per cent. 

Ten new townhouses - two bedrooms with 92 sqm space - are being constructed at Brighton with prices from $215,000.

They have a suggested $270 a week rental prospect, according to Patrick Nosier at First National.

There are three rendered 2010-built townhouse units listed at $220,000 plus at Rokeby.

Aspect Building Solutions is building two luxury townhouses in the heart of Hobart.

Set over three floors, the units of 12 Warwick Street are being marketed by Harcourts as "representing an unmatched level of sophistication, exclusivity and luxury."

Tags: 
Hobart Population Growth

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