Strengthening Tasmanian economy good for property investment
Anyone considering the purchase of Tasmanian residential property in the coming months could be in for some luck, as the latest report from Deloitte has illustrated the state's continuing economic growth, with this strength expected to continue well into the new year.
The Deloitte Access Economics report has indicated that Tasmania's economy is currently improving after falling to a low point last year.
However, the state's growth is expected to increase by 1.2 per cent over the coming year, which is a great result and the hopeful beginnings of a comeback.
Furthermore, the report has projected an overall increase of 2.5 per cent by the end of 2015, which will be the strongest result seen in the state in over five years.
Tasmanian Premier Lara Giddings said that while there was still a lot of work to be done, the vision of a strong Tasmania in the near future was slowly becoming a reality.
"Tasmania economy is emerging strongly after a period of weakness, which Access Economics says has been caused by the high Australian dollar," said Ms Giddings in a January 27 statement.
"With a falling exchange rate and low interest rates, Tasmania is seeing a solid pickup in housing construction and retail expenditure. Indeed, growth in our retail sector is now outpacing the nation."
Ms Giddings mentioned the government's recent initiative to help kickstart the growth of the state's residential construction sector, with the development of the $30,000 First Home Builder's Boost.
This has already seen 50 successful applications alongside an additional 250 new homes under the previous scheme, which is an extremely positive result to see occurring in the state.
Furthermore, the rate of employment in Tasmania has continued to grow. The Tasmanian Jobs Package has been supporting the growth of private investment across the state, which has increased by 3.1 per cent over the last quarter - totalling almost $1 billion.
Last month alone there was a drop in the state's unemployment numbers, while 500 new jobs were simultaneously created across the region as the economy began to increase in strength.
This could be extremely encouraging for the recovering state and could help to grow the number of property investors and first home buyers in Tasmania, especially if these increases are expected to continue into the future.