Average rental price for a ‘typical dwelling’ in Hobart climbs over $500

Rental prices have continued to climb in Hobart, with a “typical dwelling” now renting for over $500 a week - are you coping in Hobart's rental market? HAVE YOUR SAY + LATEST >>

RENTAL prices have continued to climb in Hobart, with a “typical dwelling” now renting for $521 a week, new data shows.

CoreLogic’s quarterly Rental Review, released on Thursday, shows the national rental index increased 1.9 per cent during the December quarter, a repeat of the figures recorded in the September quarter.

Brisbane was the strongest performing rental market amongst the capital cities over the three-month period, rising 2.3 per cent, followed by Canberra and Hobart, both rising 2.1 per cent.

Canberra remains the most expensive capital city rental market, with typical dwellings renting for $651 a week, followed by Sydney $604, Darwin $561, Hobart $521 and Brisbane $507.

‘Crucial’ calls for state to build more affordable housing

The Property Council of Australia is urging the Tasmanian government to do more to increase affordable housing supply across the state, which it says should be regarded as “crucial social and economic infrastructure”.

In its 2022-23 state budget submission, the peak property industry body calls for additional incentives to drive the construction of further affordable housing.

Over the course of 2021, housing values across Tasmania skyrocketed by 29.5 per cent, against the backdrop of the Covid-19 pandemic.

According to CoreLogic data, the median dwelling value in Hobart is currently $694,261, up 28 per cent on the previous year and more expensive than every other capital city excluding Sydney ($1.09m), Canberra ($894,338), and Melbourne ($795,108).

Meanwhile, SGS Economics and Planning’s Rental Affordability Index found that Hobart remained the least affordable capital to rent in and was the only capital where the average rental household would be considered to be in rental stress – meaning it spent more than 30 per cent of its total income on rent if renting at the median rate.

Property Council Tasmanian executive director Rebecca Ellston said the state had to increase its supply of affordable housing in order to meet surging demand and address the worsening housing crisis.

Rebecca Ellston from the Property Council. Picture: Eddie Safarik.

“More people are continuing to move to Tasmania and doing nothing to help create the right policy settings to incentivise the supply of housing is contributing to the affordability crisis in both the rental and for sale sectors,” she said.

“Housing plays a significant role in Tasmania’s social and economic prosperity. Lack of affordable housing can lead to homelessness, poor health and lower rates of employment and education, and the Property Council welcomes the government’s progress in meeting and addressing the housing needs of Tasmanians.”

Ms Ellston said the Property Council wanted to see the government work more closely with the private sector to ensure there was “an effective supply and management of social and affordable housing into the future pipeline”.

“This type of housing should be regarded as crucial social and economic infrastructure, where public-private partnerships are recognised as the preferred model of delivery for ensuring positive long-term social and economic returns,” she said.

A government spokesman said there was already a “comprehensive” plan to increase housing supply and diversity in Tasmania.

“We welcome these proactive suggestions from the Property Council and will investigate any initiatives that have the potential to increase housing supply and improve housing affordability,” the spokesman said.

He said the government was investing $615 million into social and affordable housing.

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