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'It happened overnight': property investors go cold on Tasmania after two-year gold rush
Interstate buyers drove prices higher in Hobart, Launceston and Burnie before tax changes and rising costs cut enquiries, agents said.
- Mainland investors surged into Tasmania's property market between 2023 and 2025, with home purchases rising to 2,256 from about 1,000. Real Estate Institute of Tasmania data shows Hobart, Launceston, and Burnie experienced significant increases despite broader economic pressures.
- Launceston Harcourts real estate agent Jeremy Wilkinson noted investors favored the region for low buy-in costs and high rental yields. Traditionally comprising 20 per cent of the market, investors grew to up to 60 per cent of buyers until about two months ago.
- Wilkinson's daily call volume dropped from 100 to 50 immediately after the federal government announced its overhaul of capital gains tax and negative gearing systems. "It was as if it happened overnight; the phone stopped ringing," he said.
- Investors are now shifting capital to Melbourne and Sydney while waiting for growth spikes, as northern Tasmanian home values have risen by about $100,000 over two years. This capital reallocation reflects weakening demand in the state.
- Real Estate Institute of Tasmania's Russell Yaxley noted the discretionary, price-sensitive market pulled back hardest following 13 successive RBA interest rate rises. "This was the fastest tightening cycle in RBA history," Yaxley said.
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Total News Sources12
Leaning Left10Leaning Right0Center1Last UpdatedBias Distribution91% Left
Bias Distribution
- 91% of the sources lean Left
91% Left
L 91%
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