Mainland Australians owe Tasmanians an apology. The Island State has defied years of ridicule and criticism to officially become Australia’s strongest state economy, the nation’s best-performed property markets, and a magnet that’s drawing a relocation shift.
Tassie bloody rocks!
This report contains a comprehensive list of major job-creating projects which are an important piece of a bigger puzzle that fills Propertyology with confidence that the good times in Tasmania are just beginning.
Tasmania’s well-earned success was born out of an economic plan which leveraged off the state’s unique strengths and a preparedness to proudly market them.
The state is now internationally acclaimed for a range of high-quality food and beverage products, unique holiday experiences, creative minds and is leading the way with renewable energy.
Recent economic goals that they’ve kicked include new record highs for exports, Tasmania has smashed umpteen domestic and international visitor records, their ICT workforce is growing at 8 percent annually, and the state produces surplus renewable energy for its population’s needs.
An increasing number of mainland Australians have grown to appreciate Tasmania’s beautiful surroundings which ooze nature and history, amazing food and booze experiences, and the affordable housing. The proof in the pudding is the internal migration trend from 2011 to now.
While the impact of COVID-19 has been understandably responsible for an increase in residential rental vacancy rates, the volume of housing supply is still well short of demand in each of the state’s three major service centres, Hobart (south), Launceston (north) and Burnie (north-west).
Tasmania has a big body of evidence which points towards sustained future job creation. This will progressively generate an increase in local confidence. When that occurs, an increase in real estate buyer activity generally follows. Given the consistently low housing supply, the increased demand is likely to put further pressure on Tasmanian property values and rents.
Below is a summary of some of Tasmania’s major projects (41 in total) in the pipeline:
- Assorted Road Projects: The state government has allocated a record high $378 million for investment in road projects in 2020/21, including $130 million to upgrade the Tasman Highway from Hobart to Sorrell.
Hobart
According to official data from CoreLogic, the rate of growth of Hobart’s median house price was the highest out of all eight (8) capital cities over the 20-years ending December 2019.
- Royal Hobart Hospital: After some delays during construction, the $689 million redevelopment is almost complete, paving the way for an increase in health professionals.
- Derwent Entertainment Centre: Development of a $260 million entertainment centre at Glenorchy (including a world-class basketball stadium, 200-room hotel, retail and food outlets) is estimated to create 1100 jobs. One should not underestimate the boost to come for Hobart’s visitor economy, increased marketing for the city, and the significant lift in consumer sentiment from Hobart entering a team in the National Basketball League for the 2021/22 season.
- Bridgwater Bridge: With funding assistance from the federal government, the $576 million bridge will improve transport efficiency to and from Hobart’s eastern suburbs. Construction is slated to commence in 2022, creating hundreds of local jobs.
- Hobart Airport: $200 million 3-stage expansion of the Hobart airport to accommodate international flights is due for completion late-2020 and will double airport passenger capacity within 10-years. This month, th federal government has also announced that they intend investing in Hobart airport facilities as part of Australia’s $270 billion national security strategy.
- Macquarie Point: Stage One of a $1 billion world-class entertainment precinct adjacent to Hobart’s Constitution Dock may commence during the next 12-months. This very exciting project will include an Antarctic and Science hub, a conference centre, heritage attractions, hotels, restaurants, and more.
- STEM Hub: Described by Infrastructure Australia as ‘nationally significant’, a $400 million UTAS education facility in Hobart’s CBD will specialise in science, technology, engineering and mathematics. In addition to hundreds of construction jobs, the completed facility will provide opportunities for 700 staff and 3,000 students.
- The Hedberg: $110 million state-of-the-art complex by University of Tasmania for teaching, collaborating and performing creative arts and music.
- Hobart Port: $60 million investment from TasPorts to develop an Antarctic logistics precinct plus increased cruise ship birthing capacity.
- Kangaroo Bay Hotel: $80 million waterfront hospitality project at Clarence in Hobart.
- Vibe Hotel: Due for completion mid-2020, the $46 million hotel is adjacent to the Hobart hospital and will include offices, medical suites, restaurants and 142 hotel rooms.
- Crowne Plaza: The 235-room luxury hotel in Hobart’s CBD is due for completion by mid-2020.
- Parliament Square: Completion of the $150 million 152-room Marriott hotel on the heritage site adjacent to the Salamanca precinct is slated for late-2020, creating 400 jobs.
- Mövenpick Hotel: The Hobart CBD hotel is due to be completed by mid-2020.
- Kingston Playground: A $7 million luxury playground.
Launceston
Believe it or not, across the last 20-years, Launceston’s property market outperformed Sydney [refer here].
- Launceston University: Construction of the $260 million inner-city education facility commenced in H1 2020. Once completed, it will have capacity for 15,000 students and breathe enormous energy into the city centre.
- Tamar Valley Traffic: $75 million road project to address several traffic bottlenecks in Launceston, with completion by 2023.
- Launceston Hospital: $87 million state government master plan includes a commitment to build a new ward at the General Hospital with construction likely to commence in 2021.
- Northern Tasmania Correction Centre: A $270 million project to develop a modern prison at Westbury in the state’s north, creating approximately 3,000 direct and indirect jobs once construction begins in 2022.
- Fragrance Hotel: A $50 million luxury hotel on a Launceston CBD prime heritage site, creating construction jobs 470 jobs whilst also adding an important accommodation option for Launceston’s thriving visitor economy.
- Hotel Verge: Construction of the $10 million 86-room hotel has just been completed.
Propertyology’s thought-leading research skills enabled us to identify growth potential in Tasmania real estate markets ahead of it occurring. Over the years, our multi-award-winning buyer’s agents have enjoyed helping everyday Aussies to invest in Hobart, Launceston and Burnie. You might enjoy this amazing case study.
- City Heart Project: The $20 million Stage Two of the CBD urban renewal will further enhance inner-city recreation and retail attractions.
- North Bank: $9 million redevelopment of prime waterfront land that adjoins the city into a modern recreation precinct.
- Defence Innovation Hub: $30 million federal government project to develop a defence force innovation precinct at Launceston for the Australian Maritime College, University of Tasmania and Australian Defence Force. In October 2019, global engineering giant Thales committed to becoming the anchor tenant for the precinct which is expected to create 150 jobs.
- Northern Suburbs Community Hub: A $15 million innovative recreation facility in Launceston’s outer northern suburbs.
- Cattle Hill Wind Farm: A $300 million renewable energy project currently under construction, creating 150 jobs.
Burnie
- Burnie University: Construction commenced in early 2020 for the new $90 million university on prime, waterfront land in the north-west Tasmanian regional city of Burnie.
- Port of Burnie: Tasmania’s most productive export port has infrastructure upgrades planned to increase capacity, including an international container terminal. In 2019, transport giant, Toll, completed a $311 million ship investment to capitalise on Tasmania’s anticipated export increase.
- Hermal Group Hardwood: A $190 million hardwood timber mill is planned for Burnie, creating circa 200 local jobs.
- Cradle Mountain: A $160 million master plan for visitor facilities at the unique tourist attraction in the state’s north-west.
- Biomar Manufacturing Plant: A $67 million facility has been developed to manufacture fish feed for the fast-expanding aquaculture sector. The factory opened in May 2020, creating 85 direct and indirect jobs in the Burnie region.
- Granville Harbour Wind Farm: The $280 million renewable energy project on the north-west coast is close to completion.
- Robbins Island Wind Farm: The $1.5 billion wind farm will be one of Australia’s biggest privately-funded renewable energy projects. The first stage of development is planned to be operational by 2023 and 400 jobs are expected during construction.
- Battery of the Nation: $5 billion project and 3000 jobs to develop an enormous hydro-electricity project using a series of lakes in north-west Tasmania.
- Marinus Link Project: A $3.5 billion federal and state government initiative to lay a second electricity cable across the Bass Strait. Upon completion, surplus renewable energy from Tasmania’s hydro, wind and solar facilities will provide electricity for millions of mainland Australians. The business case for the project is close to finalisation with a goal to commence construction in (say) 2022 for a 2027 completion and 500 jobs, predominantly in Burnie.
- Hellyer Gold Mine: Closed in 2006 due to tragic circumstances, NQ Minerals officially took ownership of the Beaconsfield mine in June 2020 with a view to recommencing operations quickly and creating approximately 250 jobs.
- Rogetta Project: Approvals are in place for a $100 million iron ore mining project located 30 kilometres south of Burnie, with 200 construction jobs and 100 operational jobs.
- Riley Project: Venture Minerals appears to be in the final stages of commencing its iron ore operation in north-west Tasmania, creating 100 new jobs for the region.
- Rentails Project: The Renison Bell tin and copper mine and processing plant proposed with potential to create up to 500 jobs if all approvals are obtained.
- Savage River Mine: Grange Resources has expansion plans for its iron ore mine.
- Mount Lyell Copper Mine: Mothballed since 2010, the copper mine at Queenstown is looking to recommence operations.
In both capital growth and rental growth, Hobart, Launceston and Burnie have been among Australia’s best over the last five (5) years.
The strong state economy and high levels of confidence among local owner-occupiers is behind the strength in Tasmanian property markets.
Tasmanian home ownership rates are above the national average, while median monthly mortgage payments in Hobart ($1,402), Launceston ($1,291) and Burnie ($1,083) are well below Sydney ($2,167), Melbourne ($1,800) and the national average ($1,755).
Propertyology is a multi-award-winning buyer’s agency and Australia’s premier property market analyst. Every capital city and every non-capital city, we analyse fundamentals in every market, every day. We use this valuable research to help everyday Aussies to invest in strategically-chosen locations (literally) all over Australia. Like to know more? Contact us here.
