If your idea of downsizing involves affordable housing in a location that combines natural beauty with a thriving café and restaurant scene, look no further than Tasmania. And it seems plenty of empty nesters are doing just that.
The secret is out on just how good the quality of life can be in Tassie. Once seen as the poor relation of mainland states, these days Tasmania is punching above its weight on a number of fronts.
A growing economy, a buoyant property market
According to CommSec’s latest State of the States report, Tasmania has the fourth strongest state economy, the highest relative rate of population growth and business investment, and it takes the second spot for housing finance.
Tasmania is also nailing property price growth.
Last year, Hobart home values rise 8.7%. The closest result to this was a 3.3% gain recorded by Canberra.
Even with a booming property market, Tasmania appeals to downsizers for a variety of reasons. After an unusually hot summer in many parts of the mainland, downsizers are likely to embrace Tassie’s more moderate (read: bearable) summers.
But not every empty nester will head south as a climate refugee.
Property remains affordable
The issue of housing affordability is also important. That’s especially the case if the decision to downsize is being driven chiefly by the need to release home equity for retirement funding.
Despite its thriving property market, Tasmania remains very affordable.
CoreLogic figures show that the median apartment price in Hobart is just $381,800. Compare that to $711,500 in Sydney or $541,600 in Melbourne, and you begin to see why it can make good financial sense to downsize to Tasmania.
Put simply, as a downsizer, you’re likely to enjoy a lot more bang for your buck in Tassie.
It’s not just Hobart values that are rising. According to the latest market report from valuers Heron Todd White, the ripple effect is alive and well across the island. Regional townships are continuing to experience higher values as pricing flows out from the major centres.
The key takeout is that there’s a lot to love about Tasmania as a downsizer destination. It’s the perfect combination of natural beauty, cultural sophistication and affordable housing stock. Sounds like you? Head to our listings page to see what’s available in your favourite part of the Apple Isle.