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Property News

Tasmanian commercial real estate price growth may slow

January 16, 2012

Commercial property prices in Tasmania may experience a short-term slowdown, according to a recent survey.

The Property Council of Australia's (PCA) confidence index report shows that the apple isle has experienced a slight dip in consumer sentiment, with a rating of 85 showing a slide of three points over the last quarter.

In the report, a score of 100 indicates a neutral outlook for the short-term future of residential and commercial property - results below this figure indicate that the 2,800 professionals covered by the survey may be concerned about the local market's prospects.

A number of factors were shown to play a key role in respondents' attitude - including decreased government spending that could impact on the price of office space both inside and nearby Hobart, as well as around the rest of the state.

According to the head of property research at ANZ Paul Braddick, the lowered confidence level is the result of a "subdued economic outlook" that will in turn bring along "negative capital growth expectations across residential and all commercial property segments".

Executive director of PCA Tasmania Mary Massina expanded on these predictions: "The government should be concerned with this result because it directly affects forward development decision making, which will impact on jobs and investment that are desperately needed in Tasmania."

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