This article is from the Australian Property Journal archive
TASMANIA’S state government has allocated $538 million over four years for social and affordable housing and to tackle homelessness as part of this year’s budget.
Treasurer Michael Ferguson’s first budget was handed down less than two months after the shock departure of former Premier and Treasurer Peter Gutwein.
The $8.3 billion budget includes $204 million to be spent this year on social and affordable housing.
The government has promised $1.5 billion for housing and to build 10,000 new homes over 10 years, and the government says 1,169 homes will be built this financial year. Only around 1,250 homes have been built in the past seven years under the Affordable Housing Strategy.
Tasmania’s new housing authority is expected to be operating by October and will oversee the building of those homes.
About 4,000 people are on the state’s social housing waiting list.
This year’s budget also included $6.9 million to provide Safe Space homeless shelters and the support staff in Hobart, Launceston and Burnie.
There is also funding for crisis and transitional housing.
Meanwhile, the government extended the eligible period for the First Home Buyer and Pensioner duty concessions for a further 12 months from the beginning of July and increasing the dutiable value cap from $500,000 to $600,000, with the new cap to apply retrospectively from the beginning of calendar 2022.
“Dwelling investment is expected to continue to grow, supported by a significant pipeline of work. High demand for housing is expected to continue, and is likely to be further boosted by the return of international migration to Tasmania, which will also support continued growth in dwelling investment,” budget papers say.
Hobart house prices dipped by 0.3% in April, and quarterly growth has slowed down to 1.2%, while prices are 20.7% higher than one year ago, according to CoreLogic. The city’s median house price value is $735,425.