The Rental Market in Launceston, Tasmania: Trends and Insights
Launceston, Tasmania's second-largest city, has experienced significant growth in both sale values and rents in recent years. Launceston has become a popular choice for young professionals and families with its charming heritage buildings, vibrant arts scene, and natural beauty. Let's take a closer look at the rental market in Launceston, Tasmania.
Rental Prices and Affordability
Launceston's rental market has experienced steady growth over the past few years. According to recent data from realestate.com.au, the median weekly rent for a house in Launceston is $400, while the median weekly rent for a unit is $330. This represents a significant increase from five years ago when the median weekly rent for a house was $300, and the median weekly rent for a unit was $240.
While rental prices in Launceston have increased over the past 12-18 months, they remain relatively affordable compared to other major cities in Australia. In comparison, the median weekly rent for a house in Sydney is $610, and the median weekly rent for a unit is $470.
Rental Demand and Vacancy Rates
Rental demand in Launceston has remained strong, with many properties being rented quickly. According to recent data from realestate.com.au, the vacancy rate for rental properties in Launceston is currently sitting at 1.5%. This is significantly lower than the national average of 2.6%, indicating a high demand for rental properties in the area.
It is important to understand that the shortage is in 'affordable homes'. The demand for homes above the median rent are not generating the same level of demand, so it is important that rent is set based on recent comparative data and average incomes within the local area to avoid extended vacancy periods.
Areas of High Rental Demand
Certain areas in Launceston and price points are experiencing particularly high rental demand. These include the city centre, West Launceston, Trevallyn, East Launceston, Newstead, Kings Meadows, South Launceston and Prospect. These areas are popular due to their proximity to amenities, public transportation, and employment opportunities.
Conclusion
The rental market in Launceston, Tasmania, has experienced steady growth, with demand remaining high. While this presents challenges for renters, it also presents opportunities for property investors. As Launceston continues to develop and grow, its rental market will likely remain a strong and attractive option for those looking to invest in property.