Tasmanian property investor drops ‘concern’ for rental market, says REIT

There are growing concerns that a drop in the number of investors buying into property in Tasmania could further reduce the availability of rental properties in the state.

The number of investors buying property in Tasmania in the June quarter fell 20% from the previous quarter.

Of 1,781 properties sold, only 16% were purchased by investors, with even fewer Hobart properties (12%) purchased as investments.

“It’s a worry,” said Real Institute of Tasmania president Michael Walsh.

He fears the sold properties will be pulled out of an already tight rental market that has a current statewide vacancy rate of about 1%.

“It’s probably a big discussion to have about the implications for the rental market,” he said.

Mr Walsh said 30% of buyers needed to be investors to properly support the private rental market.

“We just don’t have the private investment right now trying to keep up with that demand. Nobody knows where people live,” he said.

Supply of affordable rentals ‘down for more than a decade’

Mary Bennett of Anglicare’s Center for Social Action and Research said the fall in investment was concerning if it meant properties were leaving the long-term rental market and not being replaced by new supply.

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