Hobart’s New Norfolk is a mere 25km from the city centre and yet it is more than $200,000 cheaper to buy a house there.
The suburb is not alone though and there are nine other suburbs, all within less than 25km from the city centre, that enjoy prices well below Hobart’s median of $516,600.
RiskWise Property Research has undertaken an indepth analysis into the housing market identifying the Top 10 most affordable suburbs in Hobart.
RiskWise CEO Doron Peleg said now was the time for buyers to take advantage of some incredible buying opportunities using a long-term strategy to build equity.
In fact, Glenorchy enjoyed a whopping 74 per cent capital growth in five years and has a median price of $413,000, more than $100,000 below Hobart’s median.
Mr Peleg said the analysis clearly showed that houses, not units, represented solid buying opportunities for those with long-term strategies and this was reflected in the latest Westpac Consumer House Price Expectations Index which saw a surge of 21.7 per cent in September after tumbling 51 per cent in April.
In addition, ultra-low interest rates are expected to drive price increases once the pandemic is over when the long-held link between the cost of borrowing and housing prices reasserts itself.
He said many homebuyers we also taking advantage of the COVID-19 lockdown and working remote from home, meaning lifestyle options were more available.
Mr Peleg said now was the perfect time to take advantage of the conditions before things changed and the property market began to move again.
“There are areas where bargains can be had and if you have a long-term strategy you can expect solid capital growth over the next few years,” he said.
“There are many opportunities for buyers looking for houses with high land value as a proportion of the property, and a strong component of scarcity, especially if they intended to hold on to the property for several years or longer.
“COVID-19 has also helped strengthen ‘work from home’ opportunities, meaning owner-occupiers can take advantage of ‘lifestyle’ prospects instead of being tied to employment hubs.
“In addition, the current ultra-low interest rates have created a unique environment where buying a house in many areas was cheaper than paying rent on one.”
However, Mr Peleg stressed while this is the case for houses in these areas, units continued to carry a materially high level of risk.
For the top 10 affordable suburbs in the ACT click here
For the top 10 affordable suburbs in HOBART click here
For the top 10 affordable suburbs in VICTORIA click here
For the top 10 affordable suburbs in SOUTH EAST QUEENSLAND click here
For the top 10 affordable suburbs in WESTERN AUSTRALIA click here
For the top 10 affordable suburbs in SOUTH AUSTRALIA click here
For the top 10 affordable suburbs in NSW click here
Please Note: This list is based on suburbs that are around 70% of the medium price (i.e. not the most affordable suburbs in each capital city) and suburbs with at least 1000 houses in the existing stock. It should be noted that the lower end of the market presents different types of risks.