As we enter the final quarter of 2024, Tasmania’s commercial property market continues to show promising growth, with particular opportunities emerging in key areas such as Launceston. Tasmania’s unique blend of natural beauty, high quality of life, and economic growth has attracted attention from developers and investors alike.
At Humphreys Real Estate, we’re closely monitoring the trends impacting commercial property development across the state, with a special focus on Launceston and its surrounding regions.
Launceston: A Commercial Hub on the Rise
Launceston, Tasmania’s second-largest city, is undergoing a transformation that positions it as an exciting commercial property market in the state. The city’s mix of historic charm and modern amenities is drawing interest from local and interstate businesses looking to establish a presence in northern Tasmania.
The Launceston City Deal, a partnership between local, state, and federal governments, continues to fuel investment in the city’s infrastructure. Projects like the redevelopment of the Launceston Airport and the revitalisation of the University of Tasmania’s Launceston campus are expected to continue to stimulate further growth in the commercial sector, as more students and staff move to the Inveresk campus, we will hopefully see support for retail and hospitality space increase as well. This could also encourage the further development of new commercial properties and further redevelopment of existing properties to cater to a range of industries, including education, tourism, and professional services.
Launceston’s vibrant CBD is also experiencing a wave of renewal. Old industrial spaces and heritage buildings are being repurposed into modern, flexible workspaces that meet the demands of today’s businesses. This blend of history and innovation is a key selling point for investors seeking unique commercial opportunities that can offer long-term returns. With so many beautiful heritage properties within and surrounding the CBD, more opportunity is sure to present for redevelopment, and alternate uses of these properties.
Surrounding Regions Gaining Traction
Beyond Launceston itself, the surrounding areas are becoming increasingly attractive for commercial property development. Areas of note include Western Junction where the demand for industrial land has been strong and continues to grow. Development catering to the extensive range of industries operating from this location shows ongoing momentum with a number of buildings currently under construction within the area, these range across varying sizes. The demand for land remains unmet.
With the Launceston Airport passenger numbers increasing and more and more businesses relocating or choosing to establish their initial presence within Tasmania at Western Junction, this is a fine example of regional development, not just within Tasmania.
The Shift Toward Mixed-Use Developments
In both Launceston and its surrounding regions, mixed-use developments are playing a crucial role in shaping the future of commercial property. Projects that blend office, retail, and residential spaces are becoming increasingly popular, especially as Tasmania continues to attract a younger, more dynamic workforce. This type of development not only supports local business growth but also encourages urban renewal by revitalising underused areas.
One notable project is the ongoing revitalisation of Launceston’s North Bank and Inveresk, transforming the waterfront area into a vibrant precinct with commercial, cultural, and residential spaces. This kind of mixed-use development helps build stronger community ties while offering businesses a modern, attractive setting in which to operate. We are sure to see further development within this area in particular.
Emerging Opportunities and Challenges
While Launceston’s commercial property market is full of potential, developers and investors must also navigate some challenges. Construction costs have risen and labour has been in tight supply. Infrastructure is also an important consideration for development – matters such as stormwater, sewer and power are of immediate importance. It is vital that policy around these areas is consistent with development and that any supply constraints and considerations are addressed as part of this to support development and the cascading benefit it delivers to the community.
Equal to this is a bureaucratic environment where planning matters are addressed but developments are not stalled for the extended periods of time we are reminded of inter-state. To allow this to happen in Tasmania would be of great concern. Launceston is well-positioned to adapt given our size and entrepreneurial spirit, increasing focus on prefabricated and modular construction methods are examples of areas that help reduce costs and build times. Development of areas such as Inveresk and Launceston’s North Bank and the TRANSlink Area at Western Junction show how actively and successfully local government can work to assist in facilitating development.
Looking Ahead
As we look toward 2025, Launceston and its surrounding regions present an exciting landscape for commercial property development. The city’s ongoing revitalisation, combined with the growth of nearby towns like Westbury, Longford, and Evandale, is creating new opportunities for investors looking to tap into northern Tasmania’s expanding economy.
At Humphreys Real Estate, we are committed to helping our clients navigate these opportunities. Whether you’re considering a mixed-use development in Launceston or exploring commercial investment options in nearby regional areas, our team has the local expertise and market insight to guide you through the process.
If you’re looking to invest, develop, or lease commercial property in Launceston and northern Tasmania, get in touch with us at Humphreys Real Estate today.
Please note the above information represents our opinion only. You should undertake your own investigation prior to making any decision with regard to the purchase or development of any property.