Are mountain bikes behind Tassie town’s stunning surge?

Before the copper mining boom and before the University of Tasmania was founded, this cute-as-a-button building was built in a small town in Tasmania’s North-East.

Dating back to 1888, it has a long history as Derby’s National Bank of Tasmania and then a Westpac branch through to 1991.

Today, the five-bedroom house is perfectly located to take advantage of a booming regional property market.

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Roberts Real Estate consultant Justin Wiggins says the property — asking price $595,000 — would be ideal for short-stay accommodation or transformation into tea rooms, a cafe, restaurant or a bakery.

51 Main St, Derby is on the market at $595,000. Picture: SUPPLIED

“We have had a lot of inquiries along these lines,” he says.

“The location is bang in the middle of Main St overlooking the river. People are looking at it for Airbnb, a private home or for a business venture.”

Wiggins describes Derby as “probably” the busiest property market in Tasmania at the moment.

“Derby is just crazy, it has been very busy for three years,” he says.

Switch backs on the Blue Derby Mountain Bike Trail Picture: SUPPLIED

“Personally, I have sold 50 properties in that time in Derby and the surrounding area, in no small part because of the world-class Blue Derby mountain bike trails. It brings tonnes of people to the area.

“It is estimated that Blue Derby attracts almost 50,000 riders every year.”

Wiggins describes Derby, 95km from Launceston, as being a sleepy mining town for many years.

“You could say it was idling, doing nothing, until they built these trails and now the market is absolutely flying,” he says.

The most photographed building in town.

“People come from all around the world, all walks of life, to enjoy these trails.

“It has invigorated the town and the neighbouring areas.

“Shuttle bus companies have opened up, bike hire businesses have launched, a hotel that was practically closed is now thriving and the general store is about to be revitalised.”

CoreLogic figures for 2018 put Derby’s median house price at $270,000 with 21 sales and 16.4% annual growth.

Wiggins says prices are starting to reflect the level of activity in the town.

The old bank’s service counter.

He says a few years ago a quarter-acre block would be priced between $10,000 and 20,000, but now it is more like $150,000.

“The last quarter acre block that I sold was $120,000, but then shortly after that I sold a half-acre block for $183,000,” he says.

“I reckon leading up to or shortly after the EWS (Enduro World Series, March 31) hits town — with a lot of people here and worldwide exposure — that will be when someone snaps up the former bank.

“If someone has not already bought it.”

No.51 Main St, Derby, is priced at $595,000. CoreLogic data shows it was last sold in August 2011 for $250,000.

This article from The Mercury originally appeared as “Mountain biking trails energise Tasmanian town’s property market”.