Would You Invest Near A Prison Site?

Suburb Details:

When evaluating suburbs for investment, it's crucial to look beyond the surface-level data and consider the broader factors that impact long-term growth and desirability. Risdon Vale, a suburb that initially shows promise based on affordability and proximity to Hobart, raises significant red flags upon closer inspection. In this article, I’ll break down the key factors influencing the suburb’s investment potential, including its market trends, land supply, and unique challenges, to help you make an informed decision.

Key Data Metrics

_{*Note: Data derived from either DSR, Suburbs Finder or HTAG depending on reliability and availability of metrics. This is only a guide and best to cross-reference with other sources.}

Location & Infrastructure

Risdon Vale is a suburb located approximately 10 kilometres northeast of Hobart’s central business district in Tasmania. Predominantly residential, the area features a mix of housing types. Key infrastructure includes Risdon Vale Primary School and community facilities such as the Risdon Vale Neighbourhood Centre. The suburb has local shops catering to everyday needs and is a short drive from larger retail centres in nearby suburbs like Rosny Park. Public transport connects Risdon Vale to Hobart and surrounding areas, while the East Derwent Highway provides convenient road access. Recreational spaces, including parks and walking tracks, contribute to the suburb’s community-focused environment.

Economic Diversity & Jobs

Risdon Vale's economy is closely tied to the broader Hobart region, with most residents commuting for work. The area has a high proportion of employment in sectors like healthcare, retail, education, and construction, reflecting Tasmania’s economic structure. The Greater Hobart area, which includes Risdon Vale, has an unemployment rate of approximately 4.5%, with job opportunities diversified across public services, tourism, and agriculture. Small businesses and local trades also contribute to the local economy, though the suburb itself is largely residential. Risdon Vale benefits from its proximity to Hobart’s economic hubs, which generate significant output in sectors such as education, government, and tourism, valued at over $6 billion annually for the region.

Other Important Factors:

The primary concern with Risdon Vale is its cyclical property market. Historically, the suburb has experienced periods of growth followed by declines, and it is currently in a downward phase with property values still decreasing. This volatility makes it a less predictable choice for investors seeking stable capital growth.

Additionally, Risdon Vale has significant areas of undeveloped land, attracting developers who may introduce substantial new housing supply in the near future. This rapid increase in supply could dilute demand and further suppress property prices, creating challenges for both owner-occupiers and investors.

Another key issue is the suburb's proximity to Risdon Maximum Security Prison, which may impact the area’s appeal. Many potential buyers or renters may be hesitant to live close to a prison, raising concerns about the long-term desirability of the location for residential purposes. These factors collectively make Risdon Vale a more complex and potentially risky option for property investment.

Nearby Major Projects:

• Southern Remand Centre - Link

Example Property:

_{*Note: These calculations are purely estimations, but overall numbers will vary depending on your deposit, interest rates and other factors.}

Pro’s Of Investing In Risdon Vale✅ 

• Strong rental yields with low vacancy rates.

• Proximity to a capital city CBD.

• Days on market is average however supply is low → Strong Demand.

Con’s Of Investing In Risdon Vale❌ 

• Close proximity to Risdon Maximum Prison.

• History of cyclical price growth → higher risk.

• Lots of developable land being sold & developed → dampens house price growth.

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_{Disclaimer: The information provided in this article is for educational and informational purposes only. It is not intended as financial, legal, or professional advice. Always do your own research and consult with a qualified professional before making any decisions. The opinions expressed here are solely those of the speaker and do not reflect the opinions or views of any other organisation. By using this information, you agree that the creator of this content is not responsible for any financial or other losses you might incur.}