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Hobart continues to be Australia’s most affordable capital city, Core Logic

As a follow on to the CoreLogic RP Data Property Pulse which last week carried analysis on the most expensive suburbs in the country, research analyst Cameron Kusher this week takes his analysis to the opposite end of the scale and identifies which capital city suburbs are currently the cheapest. This analysis highlights the dramatic cost difference in each state and territory and delivers interesting insights between the most affordable and most expensive capital cities.

Mr Kusher said, “When talking about affordable prices for capital city housing, Hobart is the location of choice, and the city where property prices are much lower than in mainland capitals.” To highlight this, today’s data looks at the selling prices for the bottom decile of homes over the three months to January 2016. (Note: A decile simply divides a group into ten equal parts. What this means is if there were 20 sales over the three months lined up with the sales up from lowest to highest, the 2nd price is taken as a representation of the most affordable segment of the market.)

Key Highlights:

  • Over the three months to January 2016, the 10th percentile price of a house across the combined capital cities was $315,000 and the 10th percentile unit price was $255,000.
  • Over the same period, the 10th percentile house price across the combined regional markets was $175,000 compared to$180,000 for units. This again highlights that housing tends to be much more affordable outside of the capital cities.
  • Hobart has the lowest 10th percentile house and unit prices of all capital cities at $205,000 and $167,000 respectively.
  • Darwin is the second most affordable for houses at $229,000
  • Adelaide is in second place for units with a price of $222,000.

Mr Kusher said, “At the other end of the spectrum, the 10th percentile house price is highest in Sydney and Darwin (both $430,000) and the unit price is highest in Sydney at $360,000.”

“The more affordable nature of Hobart housing is evident when you look at the most affordable lists for each city, particularly for houses. The five most affordable suburbs for houses in Hobart are all more affordable than the most affordable suburbs in each other capital city. The data also highlights that housing costs in Sydney, Darwin and Canberra tend to be more expensive than the remaining capital cities.”

For units, the Adelaide suburbs listed are the most affordable along with some Brisbane suburbs which are cheaper than in Hobart where medium to high density development is less common. “On the other hand, unit values in the most affordable Darwin and Canberra suburbs are much higher than elsewhere,” Mr Kusher said.

While this latest affordable housing data shows myriad options are available in most capital cities however, Mr Kusher said these tend to be located on the outskirts of the capital cities.

“Of course Hobart, Adelaide and Brisbane tend to have much more affordable housing options relative to the other capital cities. Meanwhile, regional markets often offer up even more affordable housing alternatives,” he said.

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