The Hobart market is seeing a softening of yields across all market sectors according to Leslie Simpson of Commercial Hobart. The city’s industrial market is still strong, and is being driven by a wealth of major infrastructure projects including the construction of the new Bridgewater Bridge – Tasmania’s largest ever transport infrastructure project. Other infrastructure projects supporting the industrial sector are the much-anticipated $715-million Mac Point Multipurpose Stadium, described as a once in a lifetime opportunity for the state, the AFL High Performance Centre, and UTAS developments. The interest these projects are generating is further cemented by activity among owner occupiers who are able to secure funding in the current interest rate regime. As in many regions of Australia, high building costs are impacting the rate of development of vacant industrial land purchased over the past few years. This is putting a cap on supply, which is helping to support commercial property prices. Leslie Simpson leslie.simpson@rhc.com.au Hobart Office Industrial Retail Rents p/m² Vacancy Yields Rates p/m² Six-month market outlook For more information, contact: Office Industrial Retail Rents p/m² $400-$450 $170-$200 $800-$900 Vacancy 0-1% 0-1% 5% Yields 6.5-7.5% 5.5-6.5% 5.5-6.5% Rates p/m² $4,500-$5,500 $1,500-$3,500 $8,000-$10,000 Current market conditions $800,000 3/59 Cherokee Drive, Cambridge Recent Notable Transactions SOLD $850,000 57 Cherokee Drive, Cambridge SOLD Tasmania | 37 Annisa Burns annisa.burns@hobart.rh.com.au
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