Luxury couples’ retreat in remote Tasmania attracting passionate buyers
A refined retreat for couples deep in Tasmania’s wilderness is on the market and attracting a swarm of domestic and mainland buyers.
Perched on a 650m rocky pinnacle, The Keep enjoys views across northeastern Tasmania. The Bass Strait Islands are visible on a clear day, and on starry nights Eddystone Point Lighthouse glimmers from nearly 50km away.
The three-storey property, modelled on a traditional Scottish fortified tower, resides over 101 hectares of forest abundant with native flora and fauna and marbled with walking trails.
The lounge and dining area on the upper level make the most of the spectacular views.
Picture: realcommercial.com.au/for-sale
The Keep is being sold through Peter Dehnert at Knight Frank Launceston, with expressions of interest closing on 28 April.
“It truly is one of the most extraordinary places that I’ve been to,” Mr Dehnert said. “It’s a high-end property with luxury fitouts but the location is really something.”
Vendor Andrew Wallis bought the property in 2019 from the original owners, who purchased the land in 2009 with a dream to build a holiday home. Mr Wallis and his partner transformed the private residence into luxurious short-stay accommodation.
The outdoor granite bath is a favourite feature among guests – for the experience and the photo opportunity. Picture: realcommercial.com.au/for-sale
The couple sourced Tasmanian furnishings and added a spectacular granite outdoor bath, which has become Insta-famous.
Since opening in July 2020 occupancy has remained at around 90%, despite prolonged border closures. There are plenty of forward bookings, including from international visitors.
The Keep turns over more than $300,000 per year. But despite its success, Mr Wallis said it’s time to pass it on.
“We wanted to build something that was iconic and Tasmanian and we feel that we’ve done that. We think a fresh pair of eyes might be able to do something more with it.”
Development potential
While The Keep is designed for relaxation and rejuvenation, there is plenty of adventure to be had, which could also fuel the property’s development.
It’s close to mountain bike trails — one route extends from the adjoining Blue Tier forest to the famous Bay of Fires on the east coast.
“There’s definitely an opportunity to further expand the accommodation facility on this block, subject to council approval,” Mr Dehnert said. “There are 101 hectares of opportunity there.”
Walking trails thread through the property’s 101 hectares. Picture: realcommercial.com.au/for-sale
Guests can also climb nearby Mount William, explore stunning coastal trails and beaches, and enjoy the seaside town of St Helen’s.
Experiences could be another value-add, with current guests able to pay extra for a private chef and charter flights.
Interest from Tasmanian and mainland buyers
After just over a week on the market, Mr Dehnert said he’s been flooded with enquiries, mainly from Tasmanian and mainland buyers “familiar with the bed and breakfast market”.
Many already have properties in Tasmania, he said.
David Duffield, regional director in Hobart for Acumentis, said the property could also attract lifestyle seekers from the mainland keen for a move to the Apple Isle to manage the property.
“There’s certainly a lifestyle component to it but also a way of generating an income,” he said.
PropTrack economist Anne Flaherty said demand for tourism assets is on the rise across Australia, with growth “particularly strong” in Tasmania.
“Searches on realcommercial.com to buy hotel/leisure assets in Tasmania were 41% higher in 2021 compared to 2020, and 47% higher compared to pre-COVID levels in 2019,” she said.
By comparison, searches to buy hotel/leisure assets in Australia as a whole increased by only 23% between 2020 and 2021.
The Keep is an inspired reimagining of a traditional Scottish fortified tower, with the closest neighbour more than 15km away. Picture: realcommercial.com.au/for-sale
Over the last two years, Tasmania has seen 15 other hotel assets selling for less than $10 million, according to Real Capital Analytics.
These include the Norfolk Bay Convict Station near Port Arthur, one of the oldest buildings on the Tasman Peninsula; the luxurious Hamptons on the Bay, which overlooks the Tasman at Swansea; the Derwent Valley Resort; and Highfield House in Launceston, a Victorian estate founded in 1860.
Ongoing love affair with Tasmania
These properties should be well supported over coming years by a domestic tourism sector expected to rebound to record heights, with many Australians still hesitant to travel overseas.
Tasmania has always relied heavily on domestic visitors, particularly as pandemic-induced border closures limited the number of international visitors. Domestic tourists accounted for 571,200 of the 574,600 visitors in the year to June 2021 according to Tourism Tasmania.
Prior to the pandemic, domestic visitors made up 1.1 million of the 1.31 million visitors to the state in the year to March 2020.
The bedroom and bathroom on the first level offer absolute privacy with first class views. Picture: realcommercial.com.au/for-sale
And these travellers are expected to give the boutique accommodation sector plenty of love.
“Compared to overseas tourists, Australia’s domestic travellers are more likely to favour smaller boutique accommodation in place of larger hotel chains, and are often looking for more unique travel experiences,” Ms Flaherty said.
