5 best suburbs in Regional Tasmania to invest in 2021-22


[bs_leadFind out which suburbs in Regional Tasmania made the top 5 list in Canstar’s Rising Stars Australian Property Market Report powered by Hotspotting.[/bs_lead]

The median dwelling price for Regional Tasmania rose 27.2% in the year to 30 September, making it the highest increase in the nation. Its median house price was up 27.8% and its median unit price rose 21.5%.

This is a strong performance by any measure, but it’s the culmination of growth that has been sweeping the island state for the past three to four years.

Tasmania has been targeted by lifestyle buyers from the mainland. Even after several years of significant growth, prices here still look cheap to big-city residents.

Numbers suggest that Tasmania will continue to attract buyers under the ‘Exodus to Affordable Lifestyle’ trend. But there is mounting evidence that Tasmania’s regional market, after several years of big growth, has passed its peak and is starting to taper.


St Helens
St Helens, Tasmania. Image source: Benny Marty/Shutterstock.com

The 5 best suburbs in Regional Tasmania to invest in

  • Mowbray (Launceston)
  • Newnham (Launceston)
  • Old Beach (Brighton)
  • Park Grove (Burnie)
  • St Helens (Break O’Day)

The metrics for Regional Tasmania reflect the reality that this market has experienced three to four years of strong growth already and perhaps the peak has been passed. Certainly, the sales volumes data suggests this is the case.

A growing number of the towns and suburbs in Regional Tasmania are plateau markets, which means that market activity is no longer rising. But there are exceptions to be found.

Tasmania’s second-largest city Launceston is a prime example. It has enjoyed exceptional price growth for the past three years or so and still has suburbs where sales activity and prices are rising. They include still-affordable suburbs like Newnham (median price $350,000) and Mowbray (median price $315,000). The level of median price growth in Newnham in the most recent quarter, relative to annual price growth, suggests the rate of growth is accelerating. Vacancies are low and rents are rising strongly, as are sales volumes. Nearby Mowbray is showing rising growth levels in response to ongoing increases in sales activity.

Burnie is a regional centre of growing importance, with the government investing in its export port as well as road and rail infrastructure. Park Grove is the most expensive suburb in the region but still has a median house price below $400,000, with sales activity rising and prices starting to show good growth. Rents, too, are responding to very low vacancies.

Sea change towns in Tasmania are attracting lifestyle buyers from other parts of Australia, with St Helens a fine example. Renowned for its game fishing and its oysters, it has low vacancies, rising buyer demand and an uplift in its median price of more than 10% in the latest quarter.

The Brighton LGA on the northern fringe of Hobart has attracted lots of buyers for its affordable lifestyle. Old Beach sits alongside the River Derwent, has ultra-low vacancies and rising rents, with increasing sales activity inspiring higher levels of price growth.

The 5 best suburbs in Regional Tasmania to invest in

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Suburb Median house price 1-yr growth 10-yr average
annual growth (%pa)
Vacancy rate Median
rental yield
$315,000 18.9% 4.2% 0.6% 5.5%
$350,000 12.2% 3.4% 0.6% 5.3%
Old Beach
$545,000 15.9% 5.0% 0.3% 4.2%
Park Grove
$390,000 15.7% 5.2% 0.5% 5.1%
St Helens
(Break O’Day)
$420,000 15.1% 5.1% 0.2% 3.6%

Sources: Median price, growth and rental yield: CoreLogic data sourced from yourinvestmentpropertymag.com.au dated 1 August 2021. Vacancy rates: SQM Research as at September 2021.

Cover image source: David Lade/Shutterstock.com

Terry is the founder and Managing Director of hotspotting.com.au, which he created in 2006 to help investors find the best places to buy. Terry has been a specialist researcher and writer on Australian residential property in a career spanning four decades. During that time he has published four books.



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