Housing affordability in Tasmania continues to decrease despite the COVID-19 pandemic

While most of Australia became more affordable during the early stages of the COVID-19 pandemic, Tasmanian homes became less affordable. Find out why >>

A NEW report from Australia’s peak real estate body has found Tasmania’s housing affordability was on a decline prior to the coronavirus pandemic’s impacts.

According to the Real Estate Institute of Australia’s Housing Affordability Report, house prices across the rest of the nation declined in the March quarter.

But REIA president Adrian Kelly said the marginal improvement in affordability was not seen in Tasmania, Victoria, or Western Australia.

According to the report, the proportion of income required to meet home loan payments in Tasmania was at 29.6 per cent — an increase of 2.8 per cent from the same time last year.

The report also found the number of first home buyers in the state decreased to 564, a decrease of 0.5 per cent across the quarter. However, it was an increase of 11.9 per cent compared to the same quarter last year.

“Rental affordability improved in Queensland, Western Australia and the Northern Territory, but declined in New South Wales, Victoria, South Australia, Tasmania and the Australian Capital Territory,” Mr Kelly said.

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In Tasmania, the report revealed the proportion of income required to meet median rents increased to 30.5 per cent, an increase of 1.2 per cent compared to the same quarter last year.

However, the Real Estate Institute of Tasmania’s April monthly result showed the state’s housing and rental affordability was improving despite the pandemic.

Hobart house prices were down 13.8 per cent and Launceston’s 0.8 per cent, with the North-West remaining steady.

Properties were still selling on average 1.7 per cent above their list price, meaning buyers were still creating competition in the market.

In May, first home buyers were up 6 per cent, and second home buyers were up by 2.5 per cent.

The REIT’s April figures also showed median rents across Tasmania had remained relatively stable, and the vacancy rate was at 2.6 per cent across the state.

Investor numbers were down by 11 per cent.