Are you on the hunt for your dream Tasmanian abode, but finding yourself lost in a maze of location choices? Or perhaps you’re a savvy investor in pursuit of the golden opportunity but can’t find the perfect address to turn your financial dreams into reality?

Well, you’re not alone in your ponderings.

We hear the same dilemma from some of our clients, too. 

In Tasmania, the possibilities for homeownership are as diverse as the landscapes themselves. From the vibrant heart of the city to the serene pockets of provincial charm, the options seem endless when you’re contemplating the Tassie way of life. It’s a journey where you must align your deepest desires and aspirations with the ever-changing market statistics. 

Hence, we’ve put together this blog to help you navigate some of the best-kept secrets of Tassie and explore where people have moved in and refuse to move out–which might help you decide on your current property venture or your next long-term residency. 

---

The Cream of the Crops

On a national scale, data from PropTrack revealed that the typical duration of property ownership has extended to approximately 11 years, making 23% growth over the previous decade. 

A comparable scenario unfolds within various neighbourhoods across Tasmania. There are many suburbs that homeowners “buy into, fall in love with, and then never want to leave”. 

4ne4 Property Co. Director Patrick Berry believes that these suburbs are located in desirable areas and appeal to different demographics.

“The lifestyle that these suburbs offer is the reason why people don’t move out of them.”

We’ll dig much deeper into that, but before we do, let’s first get to know which Tasmanian suburbs record the longest periods of residency and homeownership amongst their residents. 

According to PropTrack, under the ‘housing’ category, West Moonah currently has the highest average hold period among all the suburbs of Tasmania with 12.9 years. April 2023 figures revealed that data has increased by 17% compared to the April 2018 data. The Median House Price in West Moonah, according to July 2023 data, is estimated to be $660,000 whilst the Median Unit Price is $500,000.

Next to West Moonah is New Town with an 11.8-year record, a 5.36% increase from the data on April 2023 which was an astounding 18% growth from 2018. The Median House Price and the Median Unit Price for New Town are $910,000 and $497,500 respectively.

Launceston holds the same amount of period as New Town (11.8 years). Its current Median House Price is $695,000 and its Median Unit Price is $437,500. April this year, its average hold period is 10.5 years, a 28% increase from its data five years ago.

The suburb of Moonah holds the fourth-highest spot with 11.3 years. During the first quarter of the year, PropTrack’s data was 10.6 years (a 21% rise from the 2018 figures). Median House Price for Moonah is $613,500 while the Median Unit Price is $435,000.

The fifth suburb on the list is South Hobart with the same average hold time as the previous one. Its Median House Price is $871,000 whilst its Median Unit Price is $550,000. A 27% growth was seen from its data from April 2018 to 2023. 

Following South Hobart are West Hobart (10.4 years), Dodges Ferry (10.3 years), Lindisfarne (10.2 years), Somerset (10.2 years), and Lauderdale (10.1 years)–all still in the bracket of a decade average hold period. 

For the dwelling units, Prospect Vale has the highest current record of 9.5 years. It is followed by Blackmans Bay (8.8 years), Howrah (8.8 years), Sandy Bay (8.6 years), Claremont (8.4 years), Glenorchy (8.3 years), Kingston (7.4 years), and Battery Point (7.3 years). 

On the flip side of things, PropTrack also revealed the numbers on the suburbs with the shortest hold times. In Tassie, first on the list is East Devonport with 5.3 years followed by Miandetta and New Norfolk with 5.5 years, Park Grove with 5.7years, and George Town with 5.8 years. 

Now that we know which suburbs hold the highest average of hold periods, it’s now time to know what makes them special and why people refuse to move out after moving and settling in these suburbs.

---

Why do people stay in these sought-after suburbs?

It’s no secret that Tasmania boasts some awe-inspiring views and beautiful landscapes that everyone would want to witness. However, beyond these natural wonders lie myriad reasons why individuals opt to settle down, call it home, and remain in these particular suburbs, rather than relocating or selling their suburban properties.

Upon closer examination, these most tightly held suburbs consistently draw a diverse spectrum of residents, spanning from young families to retirees. They typically occupy the intermediate and outer suburban regions which are typically more accessible to different establishments such as schools and shops and may also benefit from being well-serviced by road, rail, and transport networks. 

PropTrack economist Anne Flaherty believes that the significant increase in holding periods in these suburbs is a result of the improvements to infrastructure and amenities in the area.

“Better infrastructure is really key,” Ms Flaherty said.

“If we look at the suburbs that are seeing the longest hold times, they tend to be very well connected, they’ve got good road networks, good public transport, lots of shopping precincts, entertainment precincts, and lots of schools.”

Another factor could also include how family-friendly a certain suburb is. People often consider locations that are ideal settings for families. The abundance of parks, playgrounds, proximity to the water, and can host family-oriented activities make it a safe and enjoyable place to raise children.

For some of our smart homeowners slash investors, the value of their property is a significant motivator for staying in the respective suburbs. Over time, suburban real estate can appreciate substantially, offering a potential financial windfall when it’s time to sell. This investment potential encourages homeowners to remain in their properties and wait for the right moment to cash in.

Affordability may also play a significant role in the duration of property ownership. Typically, individuals do not remain in their initial homes indefinitely. However, due to the substantial increase in house prices relative to units in recent years, first-time homebuyers who originally intended to upgrade to a larger residence might find it financially challenging to do so. As a result, they are opting to extend their stay in their initial homes.

Another factor is that older homeowners at times choose to keep and hold onto their property as a store of wealth that they could pass on to their children. They do this instead of downsizing because, at times, some government incentives may not be sufficient to find a new home. 

---

Conclusion:

Now that we’ve revealed Tassie’s best-kept secrets about its longest-held suburbs, it’s your call now to decide where you’d want to live your dream life and where your investment properties could gain heaps of opportunities. 

Just a friendly reminder about economics’ basic rule of supply and demand, scarcity could happen in these tightly held areas. As property owners hold onto their homes for extended periods, the available choices for buyers have grown progressively limited. So, when opportunity knocks in, be sure you’re ready to open the door and take some calculated risks. 

If you need assistance with anything and everything real estate, our friendly team is here to lend a helping hand.