Tasmania property investors retreat as CGT reform curtails interstate buying

Interstate investors poured into Tasmania’s regional markets over the past two years, lifting sales to mainland buyers from about 1,000 homes in 2023 to 2,256 in 2025. Launceston, Burnie and Hobart saw the biggest jumps, with Launceston’s mainland purchases rising 137 % and Burnie’s 240 %.

During the same period median house prices jumped sharply – Launceston’s median rose $177,000 to $660,097 and Burnie’s $186,000 to $538,128, while Hobart’s increase was modest at $20,000. Real‑estate agents reported that investors were attracted by low entry costs and high rental yields.

The surge stalled abruptly after the federal government announced an overhaul of the capital‑gains‑tax (CGT) and negative‑gearing rules. Agent Jeremy Wilkinson said daily investor calls fell from 100 to about 50, describing the change as “the phone stopped ringing overnight.” Many investors are now shifting funds to Melbourne and Sydney, seeking growth elsewhere.