Hobart to get new light rail
Tasmania’s Minister for Sustainable Transport Nick McKim announced today that the first stage of Hobart’s proposed light rail service would be extended to the Museum of Old and Modern Art, and will be named Riverline.
Real Estate Institute of Tasmania (REIT) president Adrian Kelly told Property Observer that “it will be fantastic – if they get it off the ground.”
Kelly added that the rail corridor is already present, flanking both residential and commercial areas. He believes the light rail will bring a much-needed efficient public transport system to Hobart, which is currently serviced by buses.
“For example, to catch a bus from a suburb called Brighton into the city, that would take at least 45 to 50 minutes. To jump on the light rail, it would probably not take more than 15 (minutes). The light rail service will also run through areas that would make it much easier for people to park and ride,” he said.
Stage one of Riverline is slated to have stops at Franklin Square, Moonah, Glenorchy and MONA, with potential stops at the Botanical Gardens and New Town.
McKim believes the light rail will be a huge economic winner.
"For example, in Perth in Western Australia, property values have risen by up to 40 per cent in areas within 400 metres of light rail stations."
"The same academic report shows land values rose by up to 15 per cent as far as 800 metres from stations," he said.
However, Kelly thinks there will be “very slight price increases if a home is near a station”.
Conversely, Rick Abbott, Principal of Raine & Horne Hobart, is skeptical about Riverline.
“Stuff's like that been floating down here but nobody believes any of it. When it becomes reality, I imagine it will have some effect on the property market,” he said.
McKim stated that the project has already entered the planning phase, which includes undertaking a strategic assessment of the wider benefits of the project, as well as evaluate funding and financing options.