Launceston: A ‘Second Wind’ Property Market You Should Invest in Now

When talk turns to Tasmania’s property scene, it’s easy for the spotlight to shine brightly on Hobart, with its bustling waterfront and historic charm. But just a little further north, nestled at the head of the picturesque Tamar Valley, lies Launceston—a city that quietly hits its stride and presents a compelling proposition for savvy property investors. Launceston’s property market experiences a genuine resurgence, a ‘second wind’ that could deliver opportunities for those who get it. 

The Evidence is Mounting: What’s Fuelling Launceston’s Appeal?

Recent analysis, like the insights we’ve seen pointing to “second wind” markets in Australia, highlights the growing confidence in Launceston’s property market trajectory. Several key factors converge to create this positive outlook:

The Undeniable Pull of Affordability

One of Launceston’s most significant advantages is its relative affordability compared to Hobart and the major mainland capital cities. If you’re a property investor who wants solid returns without the hefty price tags of Sydney or Melbourne, Launceston offers a breath of fresh air. Your investment dollar can often stretch further here, allowing for potentially higher rental yields and a more accessible entry point into the market. This affordability also attracts first-home buyers and those relocating for a more relaxed lifestyle, creating a broader and more resilient market.

Lifestyle Allure: Beyond the Bottom Line

Launceston boasts a lifestyle that appeals to a range of people. Surrounded by the natural beauty of the Tamar Valley and the stunning Cataract Gorge, Launceston offers a blend of urban convenience and access to the outdoors. The city also has a growing food and wine scene, with local producers and acclaimed restaurants adding to its cultural vibrancy. Its more relaxed pace of life, rich history and heritage architecture provide a unique charm that draws in new residents and bolsters the local economy. It’s worth noting that this intrinsic lifestyle appeal often translates to a more desirable rental market and potentially stronger long-term capital growth.

Infrastructure and Development: Laying the Groundwork for Growth

Launceston benefits from infrastructure developments and investments that boost its connectivity and economic prospects. For instance, upgrades to transport links, including the Launceston Airport, can help improve accessibility. There are also developments in the health and education sectors, creating more employment opportunities and attracting skilled workers to the region. These improvements lay a solid foundation for sustained population growth and economic activity, both of which are positive indicators for the ‘second wind’ of Launceston’s property market.

A Robust Rental Market: Delivering Solid Returns

A strong rental market is a non-negotiable for most investors, and Launceston delivers. The demand for rental properties is healthy, driven by residents, students (thanks to the presence of the University of Tasmania’s Newnham campus), and those relocating to the area for work or lifestyle reasons. Combine this strong demand with the city’s relative affordability, and property investment in Launceston becomes more attractive. Just make sure to understand the vacancy rates and average rental prices in different Launceston suburbs to maximise your returns.

Why Now? Seizing the Moment in Launceston

With all the above factors in mind, now could be the perfect time to consider investing in Launceston’s property market. The “second wind” is more than a catchy phrase—it reflects a market that’s gaining momentum, potentially offering significant capital growth as more people recognise its value proposition. The lower entry point than other markets makes it accessible to a wider range of investors, and the strong rental market provides the potential for immediate income. As Launceston continues to evolve and attract more residents and investment, those who get in now could be well-positioned to benefit from its upward trajectory.

Essential Considerations for Potential Property Investors

While the overall outlook for Launceston’s property market is positive, like any investment, it requires careful consideration and due diligence.

Understanding Local Nuances

The Launceston market isn’t monolithic. Different suburbs and micro-markets within the city will have unique characteristics, demand drivers, and price trends. As such, researching specific areas that align with your investment goals is crucial. For example, areas close to the university might offer strong rental demand, while family-friendly suburbs with good schools could attract a different market segment. 

The Importance of Due Diligence

Thorough research is non-negotiable when buying a property in Launceston. This includes inspecting properties carefully, understanding local council regulations, and getting a clear picture of potential rental returns and vacancy rates in your target areas. Never skip these essential steps of property inspections and legal checks.

Connecting with Local Expertise

Engaging with local real estate agents, property managers and mortgage brokers in Launceston who know the market like the backs of their hands can be impactful. They can provide on-the-ground insights into current trends, upcoming developments, and potential investment hotspots that might not be obvious from afar.

Getting Your Finances Sorted

As with any property investment, having your financing in order is a priority. Speaking with a mortgage broker like us here at Deltos Finance can help you understand your borrowing power and explore your mortgage options. With expert guidance, you can find the best investment loan with terms and rates that suit your long-term strategy.

Riding the Launceston Wave

Launceston presents a compelling picture for property investors right now. Its affordability, lifestyle appeal, improving infrastructure, and strong rental market are all indicators of a city on the rise. The “second wind” is real, and for those looking for opportunities beyond the traditional hotspots, Launceston offers a chance to get into a market with significant growth potential. As you research, understand the local nuances, and get your finances in order, you could be well-placed to ride the Launceston wave and reap the rewards of this Tasmanian gem’s resurgence.

Ready to buy a house in Launceston, Tasmania or interested in investing? Reach out to us today. Our seasoned mortgage brokers will gladly guide you.