Find your space The election result What does it mean for property? The election has returned a majority We understand every customer coalition government, and so the spectre is different, and we are focused of Labor’s tax reform agenda is now on providing each client with the dead and buried. People in the property best advice – tailored for them. sector have expressed relief, and the view that things will continue as before. However, there will be some changes. and demand for housing stock is ensuring the market remains buoyant. However, residential property prices have dropped markedly in the two major mainland states, The main policy initiative of the government, announced and are continuing to fall. There is now significant concern during the election campaign, was to offer a fixed number being expressed as to the effect on the economy overall. of first home buyers access to finance enabling them to fund a deposit with only 5% of the purchase capital. Two other matters have been flagged that The policy is intended to enable first home buyers to could have significant implications for the access the market and buy their own home sooner. property market, nationally and here. At a state level, the government has announced an The first is the suggestion that the RBA will drop the cash extension of the $20,000 First Home Builders Grant rate next month (June) and possibly decide on a further for another year. The grant was doubled to $20,000 reduction in August. The Governor of the RBA has made in the 2016/17 State Budget, and was meant to noises to the effect that this may be a “good thing” for operate for a limited time. That time has now been the economy. A lowering of interest rates by commercial extended, and with $100 million already spent over the institutions will stimulate buyers and also potentially reduce last 4 years, a further $12.7 million, enough for over investment return benchmarks that buyers are seeking. 630 payments, has been allocated in the budget. The second is the suggestion by the banks’ governing body These two measures will encourage greater interest in the APRA that the requirement for a 7% minimum interest property market, and in the building of new homes. There rate serviceability buffer” for mortgage borrowing could does seem to be some overlap between the two policies, be lowered. In the past, APRA has regarded the 7% rate and whether that will continue is unknown. Some concern (or cap) as allowing for an appropriate buffer between the has been expressed that demand is far greater than the RBA’s cash rate and the lending institution’s mortgage available supply, and that the policy still requires homes rate. The general view is that the buffer needs to be only to be built and therefore the builders to build them. around 2% in the current climate, and as such there is room for an easing in the loan rate by removing the cap. The State government has also recognised that homelessness has become a serious issue, These two moves will no doubt create greater interest and has now decided to allocate $68 million in in the property market and encourage potential home the current budget to provide more affordable buyers and investors to become active participants. housing stock. Details at this stage are scant. With all of this happening in the next month Figures suggest that the market in Tasmania is softening, or two, we remain optimistic that the property but nowhere near the level being experienced elsewhere, market will remain in positive territory. Page | 2 We are a full-service real estate agency covering all aspects of residential and commercial property Building height issue continues to rise The issue of building heights has become In particular he noted Hobart was not built on a flat landscape but, existed within a basin that reached up significant, with a range of proposals for into the hills beyond. He expressed the view that there high rise buildings in and around the city were 5 discrete zones (“cove floor”, “escarpment”, “cove face”, “hill face”, and “edge”) and that developments in centre having been rejected by Council. each of these zones should be sensitive to the specific characteristics of the site, as well as to their form and A public meeting was held to discuss the issue. Central substance (eg height, bulk). He emphasised in his Report to the discussion is a recommendation from the Hobart the concept of a “central” zone lying between the “cove City Council’s Planning Committee that the height face” and the “hill face” zones, and of the type and form of of all buildings should be restricted to 45 metres. developments that could occur in this zone, analyses block by block. He made a specific recommendation that within There are buildings which already exceed that height the CBD the building height should not exceed 75 metres, and the fear expressed by many is that an uncontrolled due to visual amenity issues, and this recommendation height limit will destroy the fabric of the city. In fact has been taken up by supporters and critics alike without the issue is not simply one of height. Form, structure reference to other factors. Council officers, in a report to and density also play a part, as does visual impact Council, recommended that this figure be reduced to 60 and visual amenity (described as view cones). All are metres (a figure recommended by Woolley for different essential ingredients in this debate and these factors areas) and that recommendation has been amended yet are at risk of being overlooked or discarded in a desire again by the Council’s Planning Committee to 45 metres, to set an overall maximum height limit for the city. (a figure also suggested by Woolley for yet other areas). Council has yet to make a final decision on this matter. The “K” block development at the Royal Hobart Hospital is a case in point. This monolithic structure In other words the nuance that was the driver behind the abuts Campbell Street and dominates the surrounding Woolley report is in danger of being lost altogether. landscape. It is a 10-storey building and stands 68.5 metres tall. But just imagine if a similar structure had been We support the Woolley Report recommendation. built behind a three or a four-storey building. In such a We recognise that further development can occur in circumstance the impact would be far less intrusive from the CBD without affecting the character and charm a streetscape point of view, although its height would still of the city, and that such guidelines, if accepted, have some impact on visual amenity from a distance. would give proper guidance to developers. The council in 2016 sought advice from Leigh The full report can be accessed on the Woolley, an architect and urban design consultant, Hobart City Council website. who advised on the need to take such factors into account, as well as landform characteristics. Factors are at risk of being These concepts were accepted by Council and were written into the Council’s Interim Planning overlooked or discarded in a Scheme as amendments to the Scheme, and desire to set an overall maximum these amendments were subsequently approved by the State’s Planning Commission. height limit for the city. Council then sought further advice from Mr Woolley, who in 2018 provided a very detailed Building Height Standards Report, which took into account what could/should be built in particular parts of the city. It truly is a seminal piece of work, a vitally important planning document. It is a must-read. p 03 6238 4800 devineproperty.com.au e [email protected] Page | 3 Short or long term tenancy management... 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Connect with us today: Devine Stays p 0419 422 124 Fiona’s Stays property, South Arm e [email protected] Find our space at Page | 4 119 Harrington Street, Hobart We have you covered With over 80 years of combined experience in the Are you achieving the best return on your investment property? industry, at Devine Property we know that there is Contact our Property Management Team for an up to date assessment.