Sydney, Melbourne house prices 'to boost Tasmanian population

Posted: 14th Oct

The factor is an unsung strength of the state economy, according to Deloitte Access Economics.

"Population growth has lifted off the back of what was an extended phase of sharply rising house prices in Melbourne and Sydney, encouraging people to move to Tasmania and also discouraging people from moving away from the Apple Isle," Deloitte said in its latest Business Outlook report.

"That has led to today's pace of population gains in the state being more than five times what it was as recently as 2014-15.

"And, in turn, that pick-up in Tasmania's people power has boosted both construction and retail and given business more incentive to invest locally.

"In effect, we've seen an influx of people chasing the Australian dream of owning a house in Tasmania."

Deloitte also noted growing net gains of residents from overseas.

Tasmania is getting its strongest population growth in decades.

The Australian Bureau of Statistics found Tasmania gained a net 6387 people in the year to March 31, taking state population to a record 533,308.

Deloitte said Tasmania's jobs story was mixed..

"Employment remained weak for much of the past year, with slightly fewer jobs in the economy now than there was a year ago," it said.

"And there are some longer term question marks too.

"Perhaps most frustratingly, Tasmania hasn't seen the same lift in willingness to work evident through much of Australia in recent years.

"For example, whereas South Australia has seen a handy jump in the willingness to work of those aged 55 and older, Tasmania's matching gains have been much more modest.

"That's a missed opportunity."

The report described Tasmania's overall outlook as solid, partly due to strong business investment.

Source: The Examiner - https://www.examiner.com.au/story/6433256/tasmania-to-gain-from-improving-big-city-house-prices-deloitte/