Hobart the least affordable for renters, but sale prices tipped to come off the boil

A housing market report has revealed an unusual dip in Hobart’s stellar property growth of recent years, but the city remains the least affordable capital for renters.

Generic aerial view of Hobart taken from Above and Beyond seaplane. Picture: PATRICK GEE

A HOUSING market report has declared Hobart the nation’s “standout” performer for property prices against a backdrop of large dips around the nation.

But Hobart’s stellar growth of recent years is forecast to go into modest decline this year, before gaining a little ground again next year.

The ANZ housing report also highlight’s the flip side of Hobart’s recent price surges — the nation’s lowest housing affordability.

The report says Hobart prices were 3 per cent higher in June 2019 compared with the previous June, while every other capital city fell.

Looking ahead, the report forecasts prices in Hobart may dip by about 1 per cent when averaged throughout 2019 – which is the smallest forecast decline in the country.

Property is then forecast to have a modest recovery around Australia next year, including about a 2 per cent gain in Hobart.

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The report also shows Hobart has become the least affordable capital city, when rents are compared with income.

It shows Hobart households are spending on average 34 per cent of their income on rent, ahead of Sydney’s 33 per cent.

This marks the first time Hobart has been declared less affordable than Sydney – traditionally the least affordable city in the nation.

The report says affordability has improved elsewhere.

“Measures of affordability have generally improved as prices have fallen. Affordability improved in Sydney, Melbourne and Perth, stabilised in Brisbane and Adelaide and deteriorated quite significantly in Hobart for both buyers and renters”.

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Labor Housing spokeswoman Alison Standen said it was untenable for people in Hobart to spend more than a third of their income on rent.

“Families are living hand to mouth under this Government and are in acute housing stress and, in many cases, are in danger of becoming homeless,” she said.

“It’s just no way to live.”

She said families were struggling to choose between paying the rent or going hungry.

“It means mums and dads are having to make the unacceptable choice of feeding their families and paying the bills or paying to keep a roof over their heads.”

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