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By Kylie Scott
January 21, 2019
With an area of 68,401km2, and accounting for just 0.9 per cent of Australia's total area, Tasmania is our smallest state. But this hasn't stopped it from experiencing substantial popularity in recent years.
Population growth and high employment levels are contributing to a buoyant housing market, with house price growth among the highest in Australia. Tasmania is also seeing strong demand for rental accommodation and a positive outlook for dwelling construction.
Launceston has received significant investment in a series of new infrastructure projects. This includes a hospital expansion, a new university, and the revitalisation of the city centre. The latter will improve access to education and employment opportunities, stimulate economic growth and provide local businesses with the confidence to make future investments in Launceston, and the broader region.
Heading to the South, Kingborough—one of the fastest growing areas in Tasmania—is projected to grow by almost 40 per cent by 2040. The local Council has appointed Sydney-based developer, Traders In Purple, as its partner for a major urban renewal project in Kingston.
The $300 million project will see the transformation of an 11.3-hectare site into a thriving business district. It will also help to soften the city's growing pains.
Subject to approvals, the first stage of construction is set to commence this year, and the development is going to be rolled out in several stages. Early plans include a community hub, a mix of low, medium and high-density residential and retirement living options, including aged care along with commercial space and 4-hectares of parkland.
Once complete, the development will boast up to 400 residential dwellings, provide up to 1,000 skilled jobs, and inject approximately $80 million a year into the local economy.
Companies like Traders in Purple, along with the local Council and State Government, are showing support for major projects and infrastructure improvements. These will serve to boost Tasmania’s economy in a sustainable manner and ultimately offer skilled employment opportunities along with apprenticeships.
At the moment, Construction accounts for 7.6 per cent of the workforce in Tasmania.
The current Government has plans to increase the number of Tasmanians working in the building and construction industry by 25 per cent over five years. They've also said they plan to increase apprentices and trainees by 40 per cent in the lead up to 2025.
With employment in the construction sector at its highest ever levels (over 23,200), the Government is on track to achieve this.
As Tasmania’s building and construction sector continues to go from strength to strength, it's helping to stimulate the economy and build greater confidence throughout the State.
2018 marked 45 per cent increase in the total value of building approvals, achieving the highest growth rate in Australia, with the number of dwelling approvals increasing by 11.2 per cent over the same period.
Dwelling commencements were up 29 per cent in the June 2018 quarter—the highest annual growth rate in Australia and three times the national average.
To help meet the growing demand for tradies, the Government is providing $1.6 million in skills funding to support 950 new training places.
The Government has said it will continue to support growth in the building and construction industry as it means more jobs and opportunities for Tasmanians.
However, it's important to understand the reasons why Tasmania is experiencing its fastest population growth in a decade. Thus, we’ll be able to plan for the future adequately.
Experts say that climate change could play an increasingly important role in where we choose to live. It could, therefore, explain some of the reasons why Australians are looking to Tasmania as temperatures rise across the Country.
Experts predict a greater number of people will consider a move to Tasmania in search of a more moderate climate as temperatures rise. Moreover, as a consequence of climate change, some families may no longer be able to cope with the rising cost of cooling their homes on the mainland. Other motivating factors include housing affordability, employment opportunities, and lifestyle choices.
Now that we are seeing areas such as Western Sydney approach 50 degrees, the cooler Tasmanian temperatures are sure to appeal to many.
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