Mainland eyes turn south as Hobart claims its moment in the spotlight

Hobart is enjoying a time in the sun, with property prices on the increase, the tightest vacancy rates in the country and positive net migration.

“The dynamic of Hobart has really changed in the last three to four years,” says Knight Frank agent Tom Triffitt. “Tourism has always been a strong arm of our economy, but it’s really ramped up with MONA and the different festivals being held through the year.

“And we’re seeing an active property market over the last 12-18 months with a lot more interstate buyers moving here for a quieter lifestyle in a place that’s increasingly vibrant.”

This year Knight Frank smashed the residential property price record with the sale of Sentosa, a Sandy Bay waterfront home that was snapped up for a cool $6.5 million in April.

Independent economist Saul Eslake returned to Tasmania in 2014 after more than 30 years on the mainland and says despite recent growth, property prices remain affordable.

“We sold a block of about a quarter-acre in suburban Melbourne and now have an 1830s cottage on 16 acres, 20 minutes from the centre of Hobart and five minutes from the airport,” he says. “We bought this place for significantly less than what we sold for. One of the things about Hobart is that it has most of the good things you would expect a capital city to have without some of the downsides.”

Eslake says Tasmania’s star has been on the rise since 2014.

“Tasmania’s economy has been on a recovery path from the 2011-2013 recession,” he says. “We’ve had a confident government that has managed the state’s finances well and maintained a high level of business confidence. The fall in the dollar has helped our agriculture and tourism sectors and Hobart continues to benefit from the so-called MONA effect.”

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A visit from Chinese President Xi Jinping in 2014 also helped to put Tasmania on the map in terms of Chinese visitors with a subsequent pick-up in tourism and commercial development of hotels, with around 1500 rooms to be added to Hobart’s existing stock.

And if it’s the weather that’s holding you back, it might be time to take another look.

“A lot of people on the mainland think of Tasmania as if it were halfway to Antarctica in terms of weather,” says Eslake. “Yet Hobart is the same latitude as Rome and after Adelaide, it’s the second-driest capital and has the second-most hours of sunshine per annum.”

Top Australian architects are finding plenty to inspire them in Hobart too. Take this winner of the HIA Tasmania Home of the Year award last year. The ridgetop abode built by Cordwell Lane claims front-row views of the Derwent River.

A raw material palette of Tasmanian oak, concrete and steel has been used throughout the three-storey home which comes with a covered alfresco entertainment area and both indoor and outdoor fireplaces.

Now, the home is selling for around $1.95 million through Knight Frank Tasmania. Not a bad sea-change option at all. 

See more of 48 Flinders Esplanade here or download the Domain app for more Tasmanian listings.