Tasmania sees sharp drop in mainland property investment after tax changes

Interstate buyers surged in Tasmania over the past two years, with the Real Estate Institute of Tasmania reporting sales to mainland investors rising from about 1,000 homes in 2023 to 2,256 in 2025. Hobart, Launceston and Burnie all recorded strong growth, particularly Burnie, where mainland purchases jumped about 45 % since 2021. Median dwelling prices climbed sharply in regional hubs – 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.

Local agent Jeremy Wilkinson said the boom was driven by investors seeking low entry costs and high rental yields, noting that “traditionally, investors are only 20 % of our market, I reckon we might have gone up to 60 % up until about two months ago.” However, activity has cooled sharply after the federal government announced reforms to capital gains tax and negative‑gearing rules. Wilkinson reported that his daily buyer calls fell from around 100 to 50, describing the shift as “as if it happened overnight; the phone stopped ringing.” The slowdown reflects broader cost‑of‑living pressures and rising home prices, prompting many investors to shift focus to Melbourne and Sydney.