The 5 best affordable suburbs in Hobart 2023
Find out which suburbs in Hobart made the top five list in Bright Stars: Canstar’s Best Affordable Suburbs Report powered by Hotspotting.
There are plenty of great locations in Hobart where you can buy a home for less than $551,217. This was the cut-off price we used for our ‘Bright Star’ suburbs in the Tasmanian capital. (For more on why we chose this see our full report.)
Of course, price isn’t the only consideration when selecting a location to buy property. Lifestyle benefits and prospects for growth should also be on the checklist. In Canstar’s Best Affordable Suburbs Report we used five key metrics – sales volumes, price growth, vacancy rates, infrastructure and proximity to work and amenities – to identify the affordable suburbs that are desirable and likely to grow in value over time. Check out our list below.
The 5 best affordable suburbs in Hobart
- Bridgewater
- Chigwell
- New Norfolk
- Risdon Vale
- Rokeby
Bridgewater
While demand in Hobart has dropped, the Brighton LGA on the northern fringe of Greater Hobart continues to attract good demand. The extraordinary long-term growth rate of 19.3% per year is indicative of this market’s strength. Vacancies have been below 1% since 2016 and are now 0.4%. The River Derwent bridge connects to the Brooker Highway and south to central Hobart.
Chigwell
The median house price for riverside Chigwell has grown at a rate averaging 15.3% per year in the past decade – including a further 12.4% in the past 12 months. The vacancy rate has been below 1% since 2016 and currently sits at 0.9%. All that indicates that demand in this northern Hobart suburb has been strong and still is. Being alongside the renowned MONA museum facility doesn’t hurt.
New Norfolk
As affordable homes have become scarce in Hobart, demand has rippled out to towns on the periphery, including the historic riverside town of New Norfolk – where the median price remains below $500,000, despite further growth in the past year. The long-term growth average is 17.7% per year and houses are still selling in under 20 days. The vacancy rate is 1.1% and rental growth is high.
Risdon Vale
This is a notably downmarket suburb (and the Risdon Prison Complex doesn’t help) but Risdon Vale has achieved capital growth averaging 18.3% per year over the past decade. And it continues to rise, with an 18.2% uplift in the past 12 months, but the median remains below $500,000. Vacancy is 0.3% and rental growth has averaged 10% per year over three years.
Rokeby
Many suburbs on the eastern shore of the River Derwent have become pricey, like Bellerive ($935,000), Howrah ($825,000) and Tranmere ($1,300,000). But neighbouring Rokeby remains affordable ($540,000). Despite growth averaging 16.5% per year over the past decade, Rokeby remains one of the cheapest Hobart suburbs. It’s been seven years since vacancies were as high as 1% – they are currently 0.7%. There are numerous schools in the area, and the Rokeby Hills reserve.
The best affordable suburbs in Hobart
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Suburb | Median price |
10% Deposit |
|||
---|---|---|---|---|---|
Initial outlay* | Monthly repayment+ | Repayments as a percentage of dual income^ |
|||
With FHB concession | No FHB concession | ||||
Bridgewater | $485,000 | $66,093 | $75,833 | $2,533 | 23.80% |
Chigwell | $530,000 | $72,330 | $83,114 | $2,769 | 26.00% |
New Norfolk | $470,000 | $64,013 | $73,407 | $2,455 | 23.00% |
Risdon Vale | $460,000 | $62,628 | $71,789 | $2,403 | 22.60% |
Rokeby | $540,000 | $73,716 | $84,732 | $2,821 | 26.50% |
Sources: Median price: CoreLogic as at February 2023. Initial outlay and repayment data: canstar.com.au prepared on 26 June 2023. (U) stands for units. *Initial outlay figures include the deposit, stamp duty, mortgage registration and transfer fees; and lenders’ mortgage insurance (LMI) premium. Stamp duty calculated based on an owner occupier purchase of an established dwelling. LMI premium based on Helia LMI Premium Calculator for an owner occupier borrower and a loan term of 30 years. +Monthly repayments calculated based on the average variable interest rates of 5.7% and a loan term of 30 years. Interest rates based on the average owner occupier, principal and interest variable rate for a loan of $500,000 over the past year, rounded to the nearest 0.1%. ^Percentage of income based on the average total income by Greater Capital City Statistical Area (ABS Personal Income, 2019-20), adjusted by the ABS Wage Price Index (Dec-2022) for each state. A dual income assumes two people with the average income. For estimates on initial outlay, monthly repayments and repayments as a percentage of income based on a 20% deposit see full report.
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