Published on and written by Cyril Jarnias
Investing in property abroad is a dream for many expats, but Australia – and Tasmania in particular – operates under very specific rules. Between federal regulations, a rapidly evolving local market, and constraints specific to non-residents, a poorly prepared project can quickly become a headache. Conversely, for those who take the time to understand the playing field, Tasmania today offers a rare mix of accessibility, solid yields, and growth potential.
This article is a comprehensive guide for expats, particularly those in Australia, considering investing in Tasmania. It addresses this opportunity for diversifying assets, preparing for a future return, or taking advantage of a property market that remains affordable on a national Australian scale.
Why Tasmania is attracting more and more investors
Tasmania ticks several boxes sought by expats: quality of life, a market less speculative than Sydney or Melbourne, rising tourism, and strong rental demand. It is no longer the forgotten “little cousin” of the Australian market: recent data shows rapid catch-up growth.
The Tasmanian property market is emerging from a correction phase after more than two years of declining prices. Since 2024, indicators have been rising again, driven by population growth, tourism, major infrastructure projects, and diversification of the local economy (education, arts, tech, in addition to tourism and agriculture).
Over five years, the median house value in regional Tasmania surged by 58%, almost double the increase recorded in Hobart.
Rental yields, meanwhile, remain high on a national scale: in April 2025, yields were around 4.1% for houses in Hobart, 4.7% for units, and between 4.4% and 4.8% outside the capital. In certain specific sectors, these averages are far exceeded, with yields of 5% to 6% for houses and even higher for some apartments.
The median price for a house in Hobart is around 710,000 AUD, significantly lower than in Australia’s major cities.
Tasmania vs. major capitals: a gap that matters
To appreciate the scale difference, one only needs to compare the median values and yield levels observed in Australia’s main markets.
| City / Region | Median House Price (AUD) | Typical Gross Yield (houses) |
|---|---|---|
| Sydney | ≈ 1,691,731 | 3.5 – 5% |
| Melbourne | ≈ 772,561 | 4 – 5.5% |
| Brisbane | ≈ 1,087,183 | 4.5 – 6% |
| Perth | ≈ 841,928 | 5 – 7% |
| Adelaide | ≈ 851,125 | ≈ 4.5 – 6% (depending on area) |
| Hobart (houses) | ≈ 710,000 – 712,000 | 4.1 – 6% |
| Regional Tasmania | ≈ 507,000 – 549,000 | 4.4 – 6% and above |
Tasmania therefore positions itself as an intermediate market: more affordable than the major capitals, but with comparable, even superior yields, especially in suburban and regional areas.
Understanding the legal framework for an expat
Before zooming in on promising neighborhoods, one must grasp an unavoidable reality: in Australia, foreign property investment is strictly regulated. Tasmania is no exception to this rule, as it depends on federal law on this subject.
The central role of the FIRB
Any acquisition by a non-resident or temporary resident must be approved by the Foreign Investment Review Board (FIRB), under the Foreign Acquisitions and Takeovers Act 1975. Without this approval, the transaction is illegal and can result in fines, or even forced sale of the property.
For an expat, there are three main scenarios:
The conditions for purchasing property in Australia strictly depend on your residency status. Permanent residents are treated like citizens, without restrictions. Temporary residents (visa > 12 months) face strict and changing rules, including temporary bans on buying established properties. Non-residents, on the other hand, generally only have access to new dwellings, ‘off-the-plan’ projects, or vacant land for development, with the obligation to build within a set timeframe.
A major element to factor in for a project in Tasmania: from April 1, 2025 to March 31, 2027, purchases of established dwellings by foreign non-residents are prohibited. During this period, an expat considered a non-resident will need to look at:
– new developments,
– lots sold off-the-plan in approved projects,
– vacant land with a commitment to build.
FIRB approval must be applied for online. The fees, which are non-refundable even if the purchase is abandoned, are progressive: they start at around 4,500 AUD for an investment under 1 million AUD and can exceed one million dollars for very large amounts.
Property rights and immigration: two separate worlds
Owning property in Tasmania grants no automatic rights regarding visas, residency, or citizenship. Immigration procedures remain independent.
Certainly, property ownership can be an asset in an investor or entrepreneur visa application, but it does not by itself grant a right to settle. For an expat already in Australia, the challenge is rather to verify how this property will be treated tax-wise according to their tax residency status (resident or non-resident for the ATO).
How much does buying property in Tasmania cost?
For an expat, the question of the “entry ticket” into Tasmania is not just the advertised price. The total cost includes stamp duty, legal fees, searches, insurance, and even specific surcharges for foreigners.
In Tasmania, as elsewhere in Australia, one should budget around 5 to 7% of the property price for additional costs. Let’s look at the details.
Stamp Duty and the local scale
In Tasmania, stamp duty is calculated on a progressive scale. For a transfer occurring after October 1, 2012, here are some useful benchmarks:
| Property Value Bracket (AUD) | Indicative Stamp Duty Calculation |
|---|---|
| 0 – 1,300 | Flat fee 20 AUD |
| 1,301 – 25,000 | 20 AUD + 1.75 AUD per 100 AUD above |
| 25,000 – 75,000 | 435 AUD + 2.25 AUD per 100 AUD above |
| 75,000 – 200,000 | 1,560 AUD + 3.50 AUD per 100 AUD above |
| 200,000 – 375,000 | 5,935 AUD + 4.00 AUD per 100 AUD above |
| 375,000 – 725,000 | 12,935 AUD + 4.25 AUD per 100 AUD above |
| > 725,000 | 27,810 AUD + 4.50 AUD per 100 AUD above |
As an indication, a property at 150,000 AUD incurs about 4,185 AUD in duty, while a property at 500,000 AUD generates around 18,247.50 AUD. For a precise estimate, the official Tasmanian Revenue Online website (tro.tas.gov.au) provides a calculator.
In addition to the usual duties, surcharges for foreign buyers may apply depending on the tax policy in force at the purchase date. It is essential to check for an ‘Additional Foreign Buyers Duty’ at the time of your property project.
Legal and conveyancing fees
Tasmania does not have a notary system like France. Transfers are handled by law firms or licensed conveyancers. For a standard purchase, one should generally budget:
| Cost Item (Tasmania Purchase) | Indicative Amount (AUD) |
|---|---|
| Conveyancer’s Fees (purchase) | ≈ 1,800 AUD incl. GST (one provider) |
| Other sundries & disbursements | 1,100 – 1,200 AUD additional |
| Contract drafting fee (if applicable) | ≈ 165 AUD incl. GST |
| Complex files (hourly rate) | ≈ 220 AUD / hour incl. GST |
| Settlement agent fee | ≈ 100 AUD |
To this add various search fees and registration costs, some of which are mandatory and others recommended.
Mandatory and recommended searches
Before finalizing a purchase, several searches must be conducted to verify the legal, tax, and physical situation of the property.
| Mandatory Search / Disbursement | Indicative Amount (AUD) |
|---|---|
| Title search | 42.02 |
| Council rates search | 63.03 |
| Land Tax search | 15.75 |
| Land Titles Office administration | 2.95 |
| Company search (ASIC, if needed) | 27.15 |
| Bankruptcy search on vendor | 42.20 |
| Transfer registration fee | 250.21 |
| Priority Notice (priority registration) | 31.72 |
| Bank cheque fee | 12.00 |
| Verification of Identity (VOI) per person | 20.20 |
Some additional searches are highly recommended, especially in Tasmania where the sale principle is often “as is, where is”, due to the lack of a comprehensive statutory vendor disclosure regime:
| Recommended Search | Indicative Amount (AUD) |
|---|---|
| “337 searches” (set of checks) | 278.39 |
| Mines & landslide search | 66.00 |
| Tas Water search (water) | 52.53 |
| Easement search (if applicable) | 42.02 |
Other investigations can be conducted: searches with the mining authority to check for existing licenses, checks with the transport department, engaging a surveyor to verify boundaries, thorough physical inspection, etc. Lawyers often issue “Requisitions on Title” to the vendor, a detailed series of questions about the property’s history and condition.
Land tax and other recurring charges
Once you are an owner, several charges recur annually:
Buying property in Tasmania involves several recurring costs. Land Tax is calculated on the land value according to a progressive scale (e.g., 50 AUD + 0.55% beyond 25,000 AUD for a value between 25,000 and 349,999 AUD). Council rates are an annual municipal tax for local services. Water and service bills (Tas Water) may be the owner’s responsibility. Building insurance is highly recommended from the contract signing date, as the transfer of risk between vendor and purchaser is a legally grey area.
The Tasmanian rental market: extreme tightness, solid yields
For an expat investor, Tasmania’s appeal lies largely in its ultra-tight rental market. Vacancy rates are among the lowest in Australia: Hobart fluctuates between 0.6% and 0.9%, some regional areas drop to 0.3%. Direct consequence: rents have risen sharply and continue to be pushed higher by limited supply.
Figures show that in Tasmania, the share of listings under 400 AUD per week has collapsed, dropping from 32.4% of rentals in 2020 to just 10.9% in 2024. Median rents in Hobart reach about 585 AUD per week for houses and 490 AUD for units, with annual growth close to 4-5%.
Yields in Hobart: mapping the best rent-to-price ratios
Hobart remains one of the country’s most affordable capitals, but yields are higher than in many major cities. For cash‑flow oriented investors, some suburbs of greater Hobart stand out.
Key suburbs in Greater Hobart offering high house yields, according to CoreLogic’s ‘Best of the Best 2024’ report.
Stands out for its high rental yields for houses.
Known for offering attractive yields on residential property investment.
Features among the performing suburbs with strong rental yields.
Identified for its high yields on houses in the Hobart region.
Offers strong yield prospects for house investors.
| Suburb (houses) | Gross Yield (%) | Median Rent / Week (AUD) |
|---|---|---|
| Gagebrook | 5.6 | 502 |
| Risdon Vale | 5.6 | 503 |
| Chigwell | 5.5 | 505 |
| Bridgewater | 5.4 | 501 |
| New Norfolk | 5.3 | 481 |
| Berriedale | 5.2 | 511 |
| Warrane | 5.2 | 543 |
| Mornington | 5.2 | 547 |
| Claremont | 5.1 | 521 |
| Glenorchy | 5.1 | 541 |
Most of these suburbs are located within 15 km of the CBD, ensuring decent access to employment while maintaining reasonable purchase prices. These are typically in the northern and north-eastern belt of the city, with a tenant base of families, essential workers, and young households.
For units in greater Hobart, yields remain very attractive:
| Suburb (units) | Gross Yield (%) | Median Rent / Week (AUD) |
|---|---|---|
| Claremont | 5.5 | 460 |
| Brighton | 5.4 | 451 |
| Glenorchy | 5.3 | 448 |
| Moonah | 5.1 | 454 |
| Lenah Valley | 4.6 | 475 |
| Lindisfarne | 4.6 | 476 |
| Blackmans Bay | 4.6 | 479 |
| Kingston | 4.6 | 469 |
| Howrah | 4.4 | 489 |
| Bellerive | 4.3 | 480 |
Suburbs like Moonah, Kingston, Lenah Valley, and Howrah are often cited as up-and-coming “hotspots”: they benefit from gentrification, investments in transport, and strong rental demand, while still offering reasonable entry prices.
Regional Tasmania: Launceston, Devonport, Ravenswood… the real “sweet spot”?
The five-year performance figures are unequivocal: regional Tasmania has outperformed Hobart, with around 58% growth compared to 32% for the capital. Some areas show double-digit annual growth, combined with rental yields above 6%.
This is particularly true around Launceston and in the north-west (Devonport, Burnie, Acton, etc.). For an expat seeking a balance between yield, capital growth potential, and a lower entry price, these markets deserve special attention.
Best yields in regional Tasmania (houses)
Again according to CoreLogic (Best of the Best 2024 report), the best yields are concentrated in the Launceston and northern region:
| Suburb (houses, regional Tasmania) | Region | Gross Yield (%) | Median Rent / Week (AUD) |
|---|---|---|---|
| Ravenswood | Launceston & North East | 6.0 | 437 |
| Mayfield | Launceston & North East | 5.9 | 463 |
| East Devonport | West & North West | 5.5 | 428 |
| Mowbray | Launceston & North East | 5.5 | 457 |
| Newnham | Launceston & North East | 5.4 | 479 |
| Acton | West & North West | 5.4 | 395 |
| George Town | Launceston & North East | 5.3 | 390 |
| Invermay | Launceston & North East | 5.1 | 476 |
| Summerhill | Launceston & North East | 4.9 | 504 |
| Devonport | West & North West | 4.9 | 434 |
Ravenswood stands out particularly: median prices under 400,000 AUD, annual growth around 8%, and yields close to 6.6% according to several sources. For an expat investing remotely, this type of profile – moderate prices, a supportive rental market, low vacancy risk – is often more manageable than a very expensive asset in a capital city.
Yields for units in regional Tasmania
Units in regional Tasmania also offer yields above the national average:
| Suburb (units) | Region | Gross Yield (%) | Median Rent / Week (AUD) |
|---|---|---|---|
| Newnham | Launceston & North East | 5.8 | 400 |
| Prospect Vale | Launceston & North East | 5.7 | 448 |
| Riverside | Launceston & North East | 5.3 | 409 |
| Devonport | West & North West | 5.1 | 371 |
| Newstead | Launceston & North East | 5.0 | 406 |
| Latrobe | West & North West | 4.8 | 393 |
| Launceston | Launceston & North East | 4.4 | 439 |
This yield map must of course be cross-referenced with other criteria: demographic trends, infrastructure projects, local employment, tenant profile, etc.
The 5 regional suburbs to watch in 2025
Analysis combining data from Hotspotting by Ryder and calculations by Canstar Research highlights five suburbs of particular interest for 2025: Acton, Devonport, Norwood, Primrose Sands, and Ravenswood.
To compare different investment opportunities, a typical scenario is used with a 20% personal deposit and a standard loan. This standardized method allows for an objective assessment of the profitability, financial leverage, and risk of each option.
| Suburb | Median Price (AUD) | 1-Year Growth | Avg. 10-Year Growth/Year | Rental Vacancy | Median Yield (%) | Deposit (20%) (AUD) | Estimated Monthly Repayment (AUD) |
|---|---|---|---|---|---|---|---|
| Acton | 355,000 | +1% | 14% | 0.0% | 5.70% | 83,540 | 1,739 |
| Devonport | 475,000 | +4% | 11% | 0.5% | 5.00% | 112,590 | 2,327 |
| Norwood | 610,000 | +5% | 10% | 0.8% | 4.60% | 145,328 | 2,989 |
| Primrose Sands | 480,000 | +1% | 13% | 1.6% | 4.30% | 113,803 | 2,352 |
| Ravenswood | 370,000 | +8% | 13% | 1.1% | 6.60% | 87,140 | 1,813 |
Each profile speaks differently to an expat:
Analysis of several localities offering varied opportunities for investors, from high yield to lifestyle appeal.
Targets smaller budgets with very strong historical growth and rents rising sharply, but a narrower market.
Benefits from the ferry terminal to Melbourne, a port-based economy, and renewed momentum after a stagnation phase.
Combines a family-friendly residential environment, schools, parks, sustained local demand, and rare vacancy.
Offers an affordable ‘lifestyle’ alternative for Hobart workers, with solid rental demand.
Maximizes yield with a still very low entry cost, in an area undergoing transformation.
For an expat financing remotely, these figures show it is possible to target a gross yield between 5% and 6.5%, while counting on double-digit capital growth over the long term in several of these micro-markets.
How to finance a purchase in Tasmania as an expat
Obtaining an Australian property loan as a non-resident is still possible, but banks are more cautious. Major institutions (Commonwealth Bank, Westpac, ANZ, NAB) offer dedicated products, often with:
– a minimum deposit of 20 to 30% of the price,
– enhanced documentary requirements (income, bank statements, credit report from country of origin, proof the deposit is genuine savings),
– stricter loan-to-value ratio (LVR) caps,
– interest rates similar to or slightly higher than for residents.
In 2025, fixed rates for 20 to 25-year property loans generally range between 5.5% and 6.25%.
For an expat, two strategies are common:
1. Local financing, via an Australian bank or a broker specializing in non-residents, with a local bank account and a complete file for the ATO (Tax File Number, income declarations, etc.). 2. Financing in the country of origin, for example via a French bank with Australian subsidiaries, or by leveraging existing equity (using a property in France as collateral for a loan, for example).
In all cases, it is highly recommended to obtain multiple pre-approvals before making an offer, to optimize conditions (rate, term, flexibility) and strengthen your position during negotiations.
The Tasmanian buying process, step by step
The Tasmanian procedure has important specifics for an expat:
Buying property in Tasmania as a non-resident involves a precise sequence of steps: define your investment strategy, check FIRB eligibility and submit an application (30 to 90-day processing time), open an Australian bank account. Property search is done via portals or agents, and a building/pest inspection (400-800 AUD) is crucial. You need to obtain a legal analysis of searches, negotiate the contract with conditional clauses (finance, FIRB, inspections), and pay a deposit of around 10%. The settlement is managed by a lawyer or conveyancer. It is imperative to insure the property from the contract signing date and set up property management via a local agency for rent collection and tax obligations.
Managing a property in Tasmania remotely: constraints and solutions
For an expat, geographical distance complicates day-to-day management. The challenge is to delegate effectively.
Common options:
To manage a rental property, several options are available. The most common is to use a local real estate agency, whose fees typically include a letting fee (often equivalent to one week’s rent + GST), a management commission (e.g., around 6-7% of collected rent + GST), and monthly administrative fees. You can also use digital platforms and tools to manage payments online, track maintenance, and communicate with tenants via dashboards. Finally, plan for occasional on-site visits, either by traveling yourself every few years or by commissioning an independent expert for a full property audit.
Tenancy rules are governed by local legislation such as the Residential Tenancies Act: mandatory written contract, security deposit (often four weeks’ rent) held by an independent authority, limits on inspection frequency, precise notice periods, safety standards (smoke detectors, RCDs, etc.). Obligations vary from state to state, but the principle remains similar: maintain the property in good condition, respond promptly to urgent repairs, respect tenant privacy.
Tax-wise, a non‑resident must:
– obtain a Tax File Number (TFN) from the ATO,
– declare their Australian rental income, taking deductible expenses into account (loan interest, agency fees, insurance, maintenance, local taxes, etc.),
– be aware of capital gains tax upon resale, often heavier for a non-resident than for a resident.
For a French expat, for example, there is a Franco-Australian tax treaty aimed at avoiding double taxation, but the practical interpretation of the texts requires consulting an international tax specialist.
Climate risks and long-term value in Tasmania
As everywhere in the world, climate change is beginning to influence property decisions. Floods, bushfires, landslides, sea level rise: these risks impact property values, insurance premiums, banks’ willingness to lend, and buyer demand.
International studies show that:
Properties in flood zones in Europe can suffer a value discount of up to 45% depending on their exposure.
Tasmania, with its image as a “climate refuge” that is cooler and greener, is attracting some Australians and foreigners seeking areas perceived as less exposed to extreme heatwaves or bushfires. This does not mean an absence of risk: some areas can be vulnerable to landslides, floods, or coastal erosion.
For an expat investor, factoring in this parameter means: taking into account the tax and legal specificities of the host country to optimize their investment and minimize risks.
For a profitable and sustainable investment, it is essential to: check local risk maps (landslides, floods, coastline); prioritize well-insulated buildings for thermal comfort and energy savings; consider environmental standards and certificates as a long-term value-adding asset; and monitor insurance requirements, as high premiums or significant excesses can compromise the profitability of a poorly located property.
In a market like Tasmania, this “climate resilience” dimension can reinforce the positioning of certain areas like Launceston, Norwood, Ravenswood, or Devonport, seen as more temperate alternatives to mainland areas overexposed to heat.
Common expat mistakes and how to avoid them
Investing remotely, in an Anglo-Saxon legal system, without detailed knowledge of the local geography, multiplies the risks. Among the common pitfalls noted by market players:
Several critical errors can compromise a property investment in Tasmania: underestimating additional costs (stamp duty, taxes, FIRB fees, etc.); ignoring FIRB restrictions, especially during the 2025-2027 moratorium; buying without thorough inspection in a state where sales are ‘as is’; focusing solely on gross yield without analyzing the rental market, economic outlook, property quality, or resale potential; over-leveraging in anticipation of rapid price rises despite a moderate market; and neglecting international taxation, especially for French or European residents.
The solution lies in three words: preparation, expertise, diversification. Building a project around a single expensive asset in a single city amounts to accumulating risks (market, currency, regulation). In Tasmania, it is often more pertinent to build a progressive portfolio:
A progressive approach could consist of: a first high-yield acquisition in a suburb like Ravenswood, Acton, Devonport, or Glenorchy; followed by a second more “heritage” acquisition in an area primed for gentrification, such as Moonah, Kingston, Lenah Valley, or Norwood; with possible later diversification into Hobart CBD, Tasmania’s east coast, or other Australian states.
In summary: Tasmania, a niche market… but not secondary
For an expat looking to diversify their property portfolio abroad, Tasmania offers a rare compromise in the Australian landscape: affordable entry prices, among the country’s highest rental yields, spectacular past growth in regional areas, extreme rental tightness, but without the speculative overheating and stratospheric price levels of the major capitals.
This potential comes, however, with strong constraints:
– tight regulatory framework for foreigners (FIRB, temporary ban on buying established property),
– a highly technical conveyancing system where the buyer must conduct their own due diligence,
– multiple taxation (state, federal, country of origin) that must be mastered.
For an expat already in Australia, investing in Tasmania can serve to build rental income, prepare for retirement, or hedge against inflation. For an expat elsewhere in the world, it can offer a strategic foothold in a robust market, provided you surround yourself with specialists (a Tasmanian conveyancer, broker, international tax advisor) and adopt a long-term view, taking into account climate and regulatory issues.
The Tasmanian market is no longer a “well-kept secret” reserved for locals. It is now clearly on the radar of Australian and interstate investors. For expats who choose to enter it methodically and discerningly, it could well remain one of the last gateways to Australian property that is both profitable, still accessible, and aligned with the major transitions to come.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
