While most property managers are feeling anxious about the impact of COVID-19, Australian buyers are diverting their attention towards new hotspots. The luxury segment is continuing with its million-dollar transactions, and the latest centre of attraction happens to be Launceston in Tasmania.
The stunning city is highly sought-after among tourists who visit the vibrant region regularly to explore its attractions. From Cataract Gorge to the charming Victorian architecture and lush green parks, it is home to ample landmarks that add to its splendour. With a scintillating art and culture scene and exceptional capital growth, Launceston is being viewed as a viable investment option by buyers looking for luxury property for sale in Australia.
It has everything that potential buyers need to lead a lavish lifestyle – delicious food, sumptuous wine, heritage homes, higher rental yields and affordable prices. The restored historic properties are some of the highest gainers in the city and have been grabbing the attention of the high-net-worth individuals. Let us understand this new found love for Launceston in detail.
Tasmanian Economy Is Outshining Other States
It has come as a surprise to many, but Tasmania has emerged as a winning economy in the current State of the States Report. It ranked at number one along with Victoria in 2020, which is the first time for the city since 2009.
However, these figures signify the economic conditions before the COVID-19 pandemic started spreading in the country. The state government is taking this into consideration and offering generous support to businesses that have been impacted by the pandemic.
The current economic indicators are better than other states because the population has been growing steadily in the state, and its unemployment rate is lower than other regions. The influx of tourists and property buyers is yet another factor that has helped in the improvement of the financial health of the hinterland. The low-interest rates and the grants offered by the government to first home buyers have been helping in the rise of migrants in Tasmania.
Launceston Is the Newest Favourite of Wealthy Buyers
The city is home to the Launceston Airport where flights from Sydney and Melbourne land everyday which makes it easier for businesses to stay connected. The region was one of the first cities in the country to get the National Broadband Network, which provides a high-speed internet connection to households and commercial precincts.
The high-net-worth individuals who are investing in the city have been pouring in from other capital cities. Majority of the buyers belong to Sydney and Melbourne and the rest of the percentage is covered by expats and retired couples. Experts believe that buyers are interested in Launceston because they are emboldened by the strong price growth in the region.
Various immigrants are also choosing Launceston as their preferred destination for settlement because of the comfortable lifestyle and improving infrastructure being offered by the region. Also, many skilled professionals are looking at Launceston as a future-ready destination which will help them to enjoy the perfect work-life balance.
It has wineries and is in the proximity of the coastline, which makes it all the more appealing. Away from the commotion and congestion of the capital cities, it offers a haven to comfort and luxury-seekers.
Also, the COVID-19 Pandemic has reshaped the buying behaviour of prime property buyers. Thus it is highly likely that more buyers will be lining up for auctions of prestige homes in Launceston in the coming months.
Historic Homes Are the Deal Makers
The ultra-rich are eyeing the historic homes which have been refurbished and renovated and offer a European appeal. The extravagance of these massive mansions is drawing the affluent segment, which wants to enjoy the plush settings of these dwellings.
One of the first properties to receive a staggering price in the city was Glenfruin, which was constructed in 1880 and was sold for $3.25 million in 2018. It is once again available for sale for the price of $3.54 million, which shows the capital growth in the region. The price of these grand homes is still lower than opulent residences constructed in suburban Sydney and Melbourne.
Prices Make It Worth the Investment
The big buyers are trying to snap up the historic homes which are rare to find in other regions of the country at such affordable prices. The first quarter of 2020 witnessed four million-dollar transactions, and the median house price stood at $377,000. One of the million-dollar sale auctions witnessed the participation of more than 100 potential buyers in the month of March.
The rising demand in Launceston can be gauged from the fact that a three-bedroom home in St Georges Square was sold for $1.07 million even though it was pegged between $800,000 and $900,000 during the pre-auction marketing campaign.
After more than 50 viewings, the property was fiercely battled in the final bidding. The location of the property was the crowning glory as it stands in the proximity of a blue-chip region which makes it more valuable.
The Launceston City Deal Makes It More Rewarding
The government has been planning to uplift the city with various developmental projects, and the most prominent one among them is the Launceston City Deal. Signed in 2017, the deal plans to make the region one of the most liveable and modern cities in the country.
It is a ten-year plan which has already started showing signs of development. The smart city plan has been working on reinventing the City Centre so that its economic potential can be realised for a stable and high-growth future.
The progress was evident at the winter night market that was organised at the new Civic Square and witnessed an attendance of 4,000 people. The plan also includes the relocation and redevelopment of the University of Tasmania’s Launceston Campus at a budget of $260 million.
The purpose of the plan is to rejuvenate the city with more job opportunities, business activity, local government support, higher investments and strong economic development. Improved housing is also an integral part of the project so that more and more wealthy investors take note of this quickly transforming city.
The city of Launceston is undergoing modernisation, and its heritage homes have caught the fancy of the affluent buyers. Thus If you are looking for luxury property for sale in Australia, then the vibrant city offers a profitable investment opportunity.