Welcome to Australia's hottest holiday home market

The area has long had holiday properties, but these are on the rise. More than half of the homes, 53 percent, were uninhabited on the eve of last August’s Census, up from 46.5 percent in 2001. The population increased by 976 people to 5012 at that time – and more than 600 since 2016 – and the number of private homes counted increased by more from 1400 to 4,722 houses.

Sea-changers have been drawn to Tasmanian cities such as Bicheno.

Census data shows the median rent was $250 per week in August, up from $160 in 2011.

The proportion of tenants putting more than 30 percent of income on rent more than quadrupled at that time, reaching 31.7 percent.

Board general manager Greg Ingham is well aware of the housing shortage. He had rented a one-bedroom cabin in a caravan park with his wife since moving to the area nearly two years ago.

Glamorgan-Spring Bay Council general manager Greg Ingham and mayor Robert Young.

“I love living in the community I work in … and it’s the only one available,” he said.

He’s lucky to be everywhere, he says, with other staff who travel long distances due to a lack of affordable housing. This makes it difficult for boards and businesses to attract staff.

“The Airbnb marketplace isn’t helping, which has a negative impact in terms of availability for casual couples or families looking for a place,” he said. “This is a common concern with all local government areas.”

But there is no simple solution. Young said caps or higher taxes on short-term rentals need to be considered carefully, given that about 50 percent of the municipality’s revenue comes from tourism.

Both would like to see more housing development in the area, particularly affordable housing, but new land is in short supply with rezoning constrained by state planning schemes.

More than half of the homes in the picturesque area were empty on the eve of last year’s Census.

Airbnb Australia and New Zealand country manager Susan Wheeldon said housing affordability is a very difficult issue not only for people and communities, but also for governments looking to address policy challenges.

“This is a complex issue with multiple contributing factors such as population movement, supply of new homes, public housing ratios, interest rates and broader economic conditions.

“While short-term rentals generally make up a small fraction of the overall property market, we want to continue to find ways we can make a positive contribution to this important issue. Short-term rentals also play a very important role in growing Tasmania’s economy and creating jobs for locals – and we look forward to continuing to work with locals in this area.”

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KPMG demographer and urban economist Terry Rawnsley said Tasmania’s housing market had grown as the state made a name for itself with its food and wine, MONA and Dark Mofo.

With a limited housing supply, it doesn’t take much population growth to absorb available housing and keep prices down.

In a perfect world, land would have been rezoned five years ago when the tide started, he said.

“You will feed the market. But [now] You are playing catch up. ”

Council recently sold land to community housing provider Centacare Evolve Housing, which will build 18 apartments. Another six units will be delivered in Swansea, adding to the dozen properties the provider has in the area.

Centacare Evolve Housing chief executive Ben Wilson said more social and affordable housing needed to be built statewide. Nearly 4,500 people are on social housing waiting lists, nearly 50 percent of whom are priority applicants, and shelters have had to turn away hundreds of people seeking emergency accommodation.

“Significant pressure in the private market has pushed up rental prices, while people may still have a place to live, they may be experiencing significant financial stress, where 40 or 50 percent of their income goes to rent,” he said.

Half of the houses were empty on Census night on this stretch of Tasmania’s east coast.

He welcomed the Tasmanian government’s commitment to building 10,000 affordable homes by 2032, and the partnership with local councils to increase supply.

Knight Frank Tasmania’s sales consultant, Leanne Dann, said the property market had been “absolutely crazy” over the past year, with homes getting lots of deals before being advertised during its peak.

Price growth in areas such as Swansea, Coles Bay and Dolphin Sands has been driven largely by Tasmanian residents buying vacation homes and secondary homes. Cities like Bicheno have seen more interest from mainland tree changers, including young families. About two-thirds of properties are sold to holiday home buyers or investors.

Sales agent Paul Whytcross, of Roberts Real Estate Bicheno, said the real impact of the rate hikes won’t be seen until spring, when more homes are typically listed for sale.

“[Buyer demand] has eased, we are in the depths of the Tassie winter, but limited stock will enter the market, and with that… demand levels are still relatively strong. But the phone doesn’t ring [anymore],” he says.

While first-time homebuyers have always been rare in the region, he feels that young people are not valued.

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“There are definitely concerns going forward about how young people are going to get into the market here, even as far as permanent rentals go, there’s a lot of work in the area… but accommodation is limited.”

With Bargain Razaghi

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