Property investment group Reventon has named Tasmania as its next area of focus, after what it says have been strong results for clients in Perth, Adelaide and South East Queensland.
Reventon founder and CEO Chris Christofi said those three markets had already delivered substantial gains, prompting the group to look at where opportunity might sit next.
“We’ve had strong results in Perth, Adelaide and South East Queensland, but those markets have moved considerably,” Chris said.
“We’re now looking at where the opportunity sits from this point forward, and Tasmania is standing out.”
Hobart’s median home price reached $735,000 in May, following annual growth of around 10 per cent, while regional Tasmania’s median hit a record $581,000, up 12.9 per cent over the year, according to the release.
The rental market is tighter still. Hobart’s vacancy rate fell to 0.6 per cent in July, with only 162 properties available for rent across the city.
SQM Research data cited in the release shows Hobart’s combined asking rents have risen almost 12 per cent over the past year, with houses now asking around $638 a week and units around $569 a week.
“The numbers are starting to tell a very interesting story,” Christofi said.
“You’ve got property prices moving again, extremely limited rental availability and strong rental growth.”
Despite the recent growth, Chris argues Tasmania still offers a lower entry point than many mainland markets, with Hobart’s median remaining below the national figure and well short of the million-dollar-plus prices now common in several capitals.
“Price matters because ultimately you’re looking at what you’re paying today and what the opportunity is from here,” he said.
“Tasmania still gives investors the ability to enter at price points that have become increasingly difficult to find in many mainland markets.”
Reventon’s methodology assesses affordability, population and migration trends, employment, infrastructure investment, housing supply, rental demand and broader economic activity.
Chris said one of the key considerations was how much growth a market had already experienced – which is why the group’s attention has moved on from Perth, Adelaide and South East Queensland.
“Property markets don’t all move at the same time,” he said.
“Perth, Adelaide and South East Queensland have delivered very strong growth. We’re now asking where the value and the fundamentals are pointing from here.
“Tasmania is increasingly answering that question.”
Christofi pointed to the vacancy figures as central to the group’s thinking on supply.
“Only 162 properties being available for rent across a capital city tells you immediately that supply is tight,” he said.
Reventon says it is assessing opportunities on a location-by-location basis across Tasmania rather than treating the state as a single market, examining local employment, rental demand, housing supply, affordability, infrastructure and population movements.
“We’re looking at what people are paying to get into the market, what tenants are paying, how much housing is available and where the next phase of demand is likely to come from,” he said.
“On those measures, Tasmania is a market we believe has a very interesting period ahead.”