The 5 best suburbs in Hobart for first home buyers

Find out which suburbs in Hobart made the top 5 list in Canstar’s Bright Starters Australian First Home Buyer Report powered by Hotspotting.

There are plenty of great locations in Hobart where you can buy a home for less than $561,000. This was the cut-off price we used to come up with our ‘Bright Starter’ suburbs in the Tasmanian capital. (For more on why we chose this see our full report.)

Of course, price isn’t the only consideration for first home buyers. A good lifestyle and prospects for growth should also be on the checklist. In Canstar’s inaugural Bright Starters Australian First Home Buyer Report we used five key metrics – sales volumes, price growth, vacancy rates, infrastructure and proximity to work and amenities – to identify suburbs that are desirable and likely to grow in value over time. Check out our list below.

The 5 best suburbs in Hobart for first home buyers

• Berriedale
• Claremont
• Primrose Sands
• Risdon Vale
• Rokeby

Berriedale

The Glenorchy LGA north of Hobart is traditionally the cheapest part of the Hobart market. The suburb of Berriedale sits on the River Derwent but also extends west into the Derwent Valley region. It includes the MONA (Museum of Old and New Art) centre which is one of Tasmania’s greatest drawcards. The suburb has good sports facilities and there are schools in neighbouring suburbs. The Brooker Highway connects Berriedale to central Hobart.

Claremont

This is a rural residential area in the north of Hobart, which abuts the River Derwent in the east and Mount Faulkner Conservation Area in the west. It has multiple schools and a TAFE, Claremont Shopping Plaza and multiple sports clubs. It’s close to the renowned MONA (Museum of Old and New Art) centre. The Brooker Highway connects to central Hobart. Cadbury Australia’s chocolate factory is a key attraction and employer.

Primrose Sands

This is a rural-residential area in the Sorell LGA on the fringe of the Hobart metropolitan area. It’s a waterfront location and typical of those attracting big demand from affordable lifestyle buyers. Buyer demand has been elevated in the past 12 months, which explains the 18% jump in prices. Vacancies are close to zero. Proximity to Hobart International Airport (but not too close) is a bonus.

Risdon Vale

Risdon Vale is an outer suburb of Hobart on the eastern shore of the River Derwent, and adjacent to historic Risdon Cove. It is the location of Tasmania’s only maximum-security prison, Risdon Prison and Mary Hutchinson Women’s Prison – not particularly appealing but a generator of economic activity and jobs. It’s close to Risdon Brook Park and Dam. The East Derwent Highway connects Risdon Vale with Hobart CBD.

Rokeby

Rokeby is a suburb of Hobart on the eastern shore of the Derwent River. It is part of the City of Clarence. It’s traditionally been a downmarket area but that is changing. It has good sports facilities, a number of schools and is the home of the Tasmania Police Academy. Plus, it has frontage to the river. Houses are in the $400,000s and vacancies are near zero.

The best suburbs in Hobart for first home buyers

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Sources: Median price, growth and median rent: CoreLogic as at 1 February 2022. Initial outlay, time to save and repayment data: canstar.com.au as at March 2022. *Initial outlay includes the deposit, stamp duty, transfer fee and mortgage registration fee.  ^Time to save calculations are based on the time required to save up the initial outlay costs with the average income (ABS Personal Income by greater capital city statistical area, adjusted by ABS Wage Price Index, June 2021). Calculations assume that 20% of after-tax income is saved each month, earning a savings rate of 0.62% (average bonus savings rate over the past 12 months to 1/03/22). 2021/22 tax rates plus the 2% Medicare Levy are applied to the annual income and savings interest, and inflation of 2.5%pa is applied to income and property price. Dual income calculations assume there are two savers with the average income. Actual time to save will vary depending on your individual circumstances as well as the rate of property growth.  +Repayment calculations assume principal and interest repayments over a 30-year loan term with an interest rate of 3.36% (average owner-occupier variable rate over the 12 months to 1 March 2022). LMI for an owner-occupier first home buyer (per Genworth LMI Premium Calculator) is included in the loan amount for the 10% deposit monthly repayment calculations. For initial outlay, time to save and repayment data based on a 20% deposit download the full Bright Starters report.

Cover image source: Taras Vyshnya/Shutterstock.com

About Terry Ryder

Terry is the founder and Managing Director of hotspotting.com.au, which he created in 2006 to help investors find the best places to buy. Terry has been a specialist researcher and writer on Australian residential property in a career spanning four decades. During that time he has published four books.

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