Developer predicts new hotels will ease rental squeeze
A HOBART developer expects the rental market in the capital city to stabilise as more hotel developments come online.
Developer John Tellyros says his 14-apartment complex on Sandy Bay Rd will be on the market in a few months.
After starting construction last year, the block is quickly taking shape.
Mr Tellyros believes there is an opportunity to create even more apartments in the city for rentals.
“I think rents will stabilise,” he said.
“There are a combination of variables in play.
“One variable might be that there are a number of hotels in the construction phase.”
As the Mercury reported on Thursday night, the quarterly review by MyState Bank revealed, overall, an economy continuing to grow steadily last year and into 2019 off the back of growth in housing values and a strong tourism sector.
REPORT PREDICTS END TO RENTAL CRISIS
Figures released last week revealed the state led the country in residential building approvals, bucking the national trend.
The number of dwelling approvals in the year to March was 24.1 per cent higher than the previous year, according to the latest Australia Bureau of Statistics data.
MyState chief financial officer David Harradine said the issue of a lack of housing supply was unlikely to be a long-term one.
“Residential dwelling approvals are up significantly, population growth has plateaued and we’re seeing investors pulling back across all markets, which means more owner-occupied activity, and that should translate more into individuals living in properties, less being portioned off for tourists,” Mr Harradine said.