Powered by MOMENTUM MEDIA
subscribe to our newsletter

Tasmania’s economy reaching new highs

Tasmania’s market is reaching new heights, according to MyState Limited, with state final demand at an all-time high after 14 consecutive quarters of growth, Hobart recording its strongest annual increase in house value for over a decade, and a record 1.19 million tourists visiting the state over the year to September 2016.

According to MyState’s Tasmanian Economic Update, as at 30 September 2016, the broad measure of economic activity, the state final demand, reached an all-time high of $7.45 billion (up 1.36 per cent than the year before).

Household consumption remained the core drive of growth, accounting for around 60 per cent of the Tasmanian economy, with retail sales growing faster in Tasmania than anywhere else nationally in the 12 months to November 2016. Sales grew by more than 6 per cent in the island state, with Queensland coming second with just over 4 per cent growth. New car sales also surged over the past six months, outperforming other states.

As well as strong local spending, tourism continues to bring in money. According to Tourism Research Australia figures, the number of international tourists visiting Tasmania grew by more than 14 per cent to the year September 2016, more than any other state, with a total record number of 1.19 million people visiting the state.

Housing was also contributing positively to the economy, with owner-occupied housing finance commitments outperforming those nationally over the last 12 months. Owner occupiers also have a greater share of Tasmania’s housing market than other states.

Advertisement
Advertisement

Further, Hobart recorded its strongest annual increase in house value (11.2 per cent) since 2005.

According to MyState, the introduction of the First Home Owner Grant in Tasmania on 1 January 2016 may have brought forward demand.

It added that, as grants for new homes are set to reduce from $20,000 to $10,000 effective 1 July 2017, there may be a pick up of approvals prior to that date.

Speaking after the release of the report, MyState Limited chief financial officer David Harradine said the most encouraging aspect of the latest update was that the foundations appeared to be in place for economic growth to continue.

He commented: “Owner-occupier housing finance approval rates in Tasmania outperformed national rates in 2016, especially in the second half of the year, while residential building approvals steadied. The market outlook remains positive, supported by low interest rates, attractive yields and a solid local economy.”

PROMOTED CONTENT


He added: “We need to build on the fundamentals we have in place by increasing our innovation, investment and population to make this growth we are enjoying sustainable for the long term.”

[Related: Smaller capitals to overtake Sydney and Melbourne]

 

Tasmania’s economy reaching new highs
mortgagebusiness

Annie Kane

Annie Kane is the editor of The Adviser and Mortgage Business.

As well as writing about the Australian broking industry, the mortgage market, financial regulation, fintechs and the wider lending landscape – Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser Live webcasts. 

Contact Annie at: This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

Steve Kane, NAB’s longstanding executive for broker distribution, has announced his retirement from the major bank after nearly 30 years i...

While CDR and open banking could pose a risk to brokers retaining their clientele, their value proposition would lie in the insight and advi...

A start-up company that purchases homes for home buyers has secured funding from x15ventures after winning the fintech’s program for entre...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: What’s being done to support home building?

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.