Tassie’s economy? She’s apples

Australia’s smallest state is punching well above its weight economically, making the Apple Isle a compelling option for commercial property investors in 2020.

The January Commsec State of the States report ranked Tasmania first on relative population growth, housing construction and home-price growth, housing construction and home-price growth.

In the year to December, home prices rose 4.9 per cent compared with the national average of 2.3 per cent.

Additionally, Tasmania was the only state where general construction work did not contract in the September quarter. And while Victoria still leads in the economic performance stakes, the Apple Isle is not far behind with a cracking growth page of 5.5 per cent for the 12 months to September.

“These statistics don’t lie are the reason why investors from all over the nation are falling in love with Tasmania,” Burgess Rawson managing director Ingrid Filmer said.

“In terms of retail spending, the small state is bridging the gap with Victoria and New South Wales.”

Tasmania recorded a consumer-spend increase of 10.7 per cent above its decade-average level, compared with NSW’s 11.94 per cent.

“There are many reasons why Tasmania is becoming increasingly attractive to cross-border investors. For instance, the state leads in terms of job advertisements and initiatives for economic development,” Ms Filmer said.

The Tasmanian government’s recent accounts report shows that gross state product per capita surges 2.3 per cent last financial year, or almost double the next strongest jurisdiction, the ACT, which recorded a lift of 1.2 per cent. No other state came close to that growth.

“The report also said government consumption rose 6.2 per cent in 2018-19 compared with the national average of 4.2 per cent.

“The fact that excites investors in all categories the most is that last financial year, there were no industries in Tasmania that record negative growth.

Even retail trade firmed 1.2 per cent, and healthcare services jumped an impressive 7.4 per cent.

“These performances will be welcomed by buyers when we put a fully leased and immaculately presented commercial rental complex in Launceston on the block at our next portfolio auction later this month.”

The property at 139-143 Hobert Rd, Kings Meadows, Launceston’s biggest commercial precinct outside the CBD, has a modern 1350 sqm building on 2300 sqm.

It is largely tenanted by high-quality, health industry businesses.

Also to be auctioned is the Camerons building, a three-level office complex at 44-56 Cameron Street in Launceston’s business district.

“With the professional service and public administration sectors growing their contribution to the gross state product by 4 per cent and 5 per cent respectively, commercial occupancies look strong,” Ms Filmer said.

The portfolio auction, to be held at 11am on February 26 in the River Room at Crown, will list properties from all over the country and in most categories, from childcare centres to retail and office offerings. The day before, on February 25, Burgess Rawson will conduct a special 7-Eleven portfolio auction.

There are 18 of the fuel and convenience outlets being offered from around Australia.

The auction begins at 10.30am at 55 Margaret St, Sydney, and continues at 1pm in Crown’s River Room in Melbourne.

Burgess Rawson will donate $1000 from the proceeds of each property sold in February to bushfire relief.

Published in the Herald Sun