There are growing concerns a drop in investors buying into Tasmanian real estate could further shrink the availability of rental properties in the state.
Key points:
Overall, Tasmanian house sales have continued to trend down for the second consecutive quarter
Despite the falls, property sales for the June quarter were still slightly above the 10-year average of 1,739 properties
Mary Bennett from Anglicare says the drop in investment is concerning if it means properties are leaving the long-term rental market and not being replaced
The number of investors purchasing a Tasmanian property in the June quarter fell by 20 per cent compared to the previous quarter.
Out of 1,781 properties sold, just 16 per cent were purchased by investors, with even fewer Hobart properties (12 per cent) purchased as investments.
“That’s a worry,” the president of the Real Institute of Tasmania, Michael Walsh, said.
He fears properties being sold could be removed from an already tight rental market that has a current statewide vacancy rate of about 1 per cent.
“That’s probably a big discussion to be had on the implications for the rental market,” he said.
Mr Walsh said 30 per cent of buyers needed to be investors to properly support the private rental market.
“We just don’t have the private investment right now that tries to keep pace with that demand. Where people live is anyone’s guess,” he said.
Supply of affordable rentals ‘falling for over a decade’
Mary Bennett from Anglicare’s Social Action and Research Center said the drop in investment was concerning if it meant properties were leaving the long-term rental market and not being replaced by new supply.
