Raine & Horne Commercial

TAS - Hobart Leslie Simpson of Commercial Hobart says COVID-19 has had little impact on the industrial market around Hobart largely due to demand from businesses involved in the construction services sector. The Tasmanian state government has been driving the residential construction sector to keep the economy buoyant, and as businesses working in the construction sector have close to ‘essential services’ status, they have been able to maintain momentum through the COVID-19 crisis. The office market was impacted by early lockdowns, however Leslie says that surveys indicate that by September approximately 60.0% of office workers have returned to the workplace in Hobart. The retail sector is feeling more of a pinch from COVID-19, though Leslie notes, “some retailers associated with home improvements such as electrical appliances and garden nurseries are booming. Businesses in hospitality have been hardest hit although some SMEs such as cafes and bars are doing surprisingly well due to the support of JobKeeper and GST relief.” There is very little investment stock in Hobart, and the sales market is being driven by demand from owner-occupiers – especially businesses supporting the construction industry such as tradespeople including builders, plumbers and the like, who want to buy their own industrial premises. “We are mostly selling land zoned for industrial purposes such as the new industrial subdivision at 107 Kennedy Drive, Cambridge,” explains Leslie. Lot sizes range from 2,597 to 6,806 square metres, and are valued between $385,000 +GST to $680,000 +GST.” “There are only three blocks left in the first stages of this development, which initially will feature mainly strata title warehouse complexes. We have sold around $3 million worth of industrial land in this project over the past three months, which shows how strong demand is for industrial land in the Cambridge area,” said Leslie. 39 - Leslie Simpson leslie.simpson@rhc.com.au