Historic Hobart building breaks Tasmanian record

A 180-year-old building near the Salamanca Markets has sold on the lowest ever yield for an commercial investment property in Tasmania.

The three-storey sandstone building at 21-23 Salamanca Place sold at auction for $7.8 million, with eight bidders driving the yield down to just 3.47%.

Home to the Irish Murphy’s tavern on the ground floor, the two upper levels consist of renovated offices, while the third storey also contains the ‘Salamanca Loft’ – a recently refurbished two-bedroom unit.

An undisclosed local buyer was the winning bidder for the property, which is located near the soon-to-be-built Parliament Square development.

The Hobart building features offices on the upper levels.

Selling agent and Knight Frank Tasmania CEO Scott Newton says investors are increasingly looking to Tasmania as an attractive investment market.

“The Hobart investment market is as strong as we have experienced historically, and the appetite for this property is a testament to this,” he says.

“Yields are now breaking below 6% consistently, with this property receiving the lowest yield on record to our knowledge for an investment property in Tasmania.”

“This was a highly competitive sale, with eight bidders and around 100 people at the auction. In one of the most highly sought-after areas in Australia, it sold well above the reserve and exceeded expectations.”