Tasmanian property investor drop 'a worry' for the rental market, REIT says

Tasmanian property investor drop ‘a worry’ for the rental market, REIT says

There are growing concerns a drop in investors buying into Tasmanian real estate could further shrink the availability of rental properties in the state.

The number of investors purchasing a Tasmanian property in the June quarter fell by 20 per cent compared to the previous quarter.

Out of 1,781 properties sold, just 16 per cent were purchased by investors, with even fewer Hobart properties (12 per cent) purchased as investments.

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

He fears properties being sold could be removed from an already tight rental market that has a current statewide vacancy rate of about 1 per cent.

“That’s probably a big discussion to be had on the implications for the rental market,” he said.

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

“We just don’t have the private investment right now that tries to keep pace with that demand. Where people live is anyone’s guess,” he said.

Supply of affordable rentals ‘falling for over a decade’

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