Hobart Affordability Guide: Real Estate Investment Suburbs Revealed

PRD Real Estate has analyzed the housing and unit markets in Tasmania’s capital, showing property prices continue to rise, but the rate of growth is slowing.

The Affordable and Livable Property Guide for Hobart Metro has analyzed all the suburbs within a 10km radius of Hobart CBD.

According to the Warrne report, Mornington and Clarendon Vale offer affordable and livable options for potential home buyers.

Suburb Median house price Distance from CBD Median price annual growth
warne $462,625 5.1km 15.7%
Mornington $561,250 5.9km 29.0%
Clarendon Valley $435,000 9.4km 52.6%

If you’re looking to buy a unit, the report found Oakdowns, Bellerive and Kingston to be the most affordable and livable suburbs.

Suburb Median unit price Distance from CBD Median price annual growth
Oakdowns $560,000 10km 27.3%
Bellerive $586,250 6.2km 44.5%
kingston $535,000 10km 16.7%

According to the report, median property prices in Hobart Metro rose 25.5% for homes to $828,500 from Q1 2020 to Q1 2022, and 17.3% for units to $610,000 .

Data shows that between the first quarter of 2021 and the first quarter of 2022, total sales decreased by -17.8% (to 415 sales) for homes and -32.3% (to 151 sales) for units .

In comparison, between Q3 2020 and Q3 2021, Hobart Metro’s median price increased by 30.5% for homes and 43.5% for units.

“With the economy entering a new phase of higher cash rates and less fiscal or government stimulus, there are opportunities for first-time home buyers,” the report said.

“An estimated $972.8 million in projects are planned in the first half of 2022, with a primary focus on residential.

“Market conditions continue to strongly favor sellers as buyers need to bid above the initial listing price.

“That said, average seller premiums in the first quarter of 2022 are lower than the last three quarters, which should provide relief to buyers.

“The dominant proportion of homes sold in Hobart Metro in 2021/22 were in the premium price range of $900,000+ (37.5%).”

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Source: PRD

Rental market

In March 2022, Hobart Metro recorded a low vacancy rate of 0.3%, well below Sydney Metro (1.6%) and Melbourne Metro (1.9%).

Vacancy rates in the Hobart metro area have remained well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, even throughout COVID-19.

According to the data, Hobart has a median rental price of $550 for homes and $450 for units.

The Hobart Metro vacancy rate has continued to trend downward since April 2020, exhibiting historically low trends over the past 24 months.

Hobart Vacancy.png

Source: PRD


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Are you buying a house or looking to refinance? The table below shows home loans with some of the lowest interest rates on the market for homeowners.



Lender


Variable More details
UNLIMITED WITHDRAWALSSPECIAL OFFER

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  • Fast turnaround times, can meet 30 day settlement
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Variable More details
AN EASY DIGITAL APPLICATION

Careful variable real estate loan (capital and interest) (LVR

  • No ongoing fees – None!
  • Unlimited additional refunds
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  • Redraw – Access your extra payments if you need them
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Careful variable real estate loan (capital and interest) (LVR
  • No ongoing fees – None!
  • Unlimited additional refunds
  • Easy online application, quickly find out if you are approved!
  • Redraw – Access your extra payments if you need them
  • Use the app for loan information to help you pay off your home loan faster

Variable More details
100% COMPLETE CLEARING ACCOUNTNO APPLICATION FEES OR ON-GOING FEES

Low Rate Home Loan – Premium (Principal & Interest) (Owner Occupant) (LVR
  • No upfront or ongoing fees
  • 100% cleared account
  • Additional refunds + withdrawal services

Variable More details
NSW/VIC/SA METRO AND INLAND REGIONAL AREAS$5000 REBATE. T&Cs APPLY.

Variable real estate loan (capital and interest)

  • No upfront or ongoing fees
  • 100% cleared account
  • Additional refunds + withdrawal services


Basic criteria: a loan amount of $400,000, variable, fixed, principal and interest (P&I) real estate loans with an LVR (loan-to-value) ratio of at least 80%. However, the “Compare mortgages” table allows calculations to be made on the variables selected and entered by the user. All products will list the LVR with the product and price list which is clearly published on the product supplier’s website. Monthly repayments, once the basic criteria are modified by the user, will be based on the advertised prices of the selected products and determined by the loan amount, repayment type, loan term and LVR as entered by the user. user/you. *The comparison rate is based on a loan of $150,000 over 25 years. Please note: this comparison rate is only true for this example and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different comparison rate. Rates correct as of May 27, 2022. See disclaimer.


Image by Spencer Chow via Unsplash

The entire market has not been taken into account in the selection of the products above. Instead, a reduced portion of the market was considered. Products from some vendors may not be available in all states. To be considered, the product and price must be clearly published on the product supplier’s website. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au and Performance Drive are part of the Savings Media group. In the interest of full disclosure, Savings Media Group is associated with Firstmac Group. To learn how Savings Media Group handles potential conflicts of interest, as well as how we are paid, please visit the website links at the bottom of this page.