Which Hobart suburbs are the most liveable and affordable?
An area in the northern suburbs is leading the change for homes that won’t break the bank while also offering a desirable lifestyle. See where>>
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THE most affordable liveable suburbs in greater Hobart have been revealed in the latest report from PRD Real Estate’s research team — and Glenorchy was named the place to be.
Six suburbs were highlighted as offering buyers the best mix of pricing and a swath of lifestyle features.
PRD chief economist Diaswati Mardiasmo’s report analyses median prices, investment markets and seeks a high level of project development.
She is also hunting for areas that have a below-average crime rate, easy access to schools, parks, shops, transport and health care facilities, as well as low unemployment rates.
For the first time, this report adds another criterion: supply. To make the cut, suburbs must also show a reasonable amount of new ready-to-sell stock planned for construction.
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The Affordable & Liveable Property Guide 1st Half 2024 highlighted Glenorchy as the only suburb to have its houses and units meet the mark.
For houses, Risdon Vale and Rokeby rounded out the top three, while units in Berriedale and Lutana came out on top.
Dr Mardiasmo said adding supply to her analysis was important because of the dire shortage of properties compared to demand across the nation.
“It was an important addition, especially for young buyers searching for homes, for new stock, in the areas that we highlight,” she said.
“There might be cheaper suburbs than the six on our list, but it is also about satisfying all the criteria, the need for development and lifestyle.”
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PRD Hobart property representative Kevin Spaulding said people love Glenorchy because it has everything needed in a suburb while also being affordable.
“Glenorchy home prices have held up well, but like all suburbs, the cost of living and interest rate pressures have had an impact,” he said.
“Things are harder to sell currently, and the prices have slightly reduced.
“However, if a property is priced well, you will attract good numbers.”
For houses, the report showed that 10 out of 53 Hobart suburbs were classified as affordable. By percentage, this was more than in Sydney, but fewer than Brisbane or Melbourne.
For units, 18 out of 53 Hobart suburbs made the affordability cut. This was the lowest level of the four cities.
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Dr Mardiasmo said there are a number of hurdles for first-time home buyers.
“Definitely saving their deposit, and then also trying to figure out what is the best thing to do for their personal situation,” she said.
“Are prices going to rise? Will there be an interest-rate cut next year? Will my borrowing capacity improve? Should I act now or wait? There is a lot to consider.”
Today’s market is like a rock and a hard place for many young buyers, Dr Mardiasmo said, who have not purchased a property before.
“We are seeing cautious buyers, people taking their time — which has pushed time on market figures out,” she said.
“Ultimately, if you are ready to buy, then now is the time to enter the market.”
Dr Mardiasmo said the choice between a house and a unit can make all the difference when trying to get a foot on the housing ladder.
“There are more options in Hobart for an affordable unit, rather than a house. I always ask young buyers if they really need a house, or if a unit would suit their needs,” she said.
Meanwhile, the Real Estate Institute of Australia’s quarterly Housing Affordability Report shows a slight decrease in mortgage servicing in Tasmania.
The portion of family income needed to meet loan repayments was 42 per cent in March this year, compared to 43.3 per cent in the previous quarter and 42.2 per cent in March 2023.
March rentals were more expensive at 27.3 per cent compared to December (26.6 per cent), but lower than they were one year ago 28.6 per cent.
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