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The most affordable city for a new home

Hobart is the place to be when it comes to affordable new house and land relatively close to central business districts in Australia’s major capital cities.

But homebuyers looking for value can also pick up competitively priced house and land pairings within a few kilometres of the CBD in Brisbane.

Research by real estate chain PRDnationwide shows that the suburb of Howrah (11km from Hobart) has the lowest price nationally – $299,000 – for a home and land combination. For that the buyer will get a three-bedroom home with two bathrooms and a garage.

For $419,000 in Brisbane a purchaser can obtain a two-bedroom house (with bathroom and garage) and land package in Coopers Plains, about eight kilometres from the city.

MONA

Hobart’s Museum of Old and New Art.

Hobart real estate agency Charlotte Peterswald for Property says Hobart has first-homebuyer friendly properties close to the city because its market is still recovering from significant property price drops in 2010-2011.

“We just don’t have the turnover or the fluctuations in the market like Melbourne or Sydney,’’ says Charlotte Peterswald for property director Kim Morgan. “In 2003 we had really good (property) price increases, and again in 2007. Then in 2010 and 2011 following the global financial crisis (GFC) we begin to see a price correction. Now, we are starting to see a resurrection in prices from 2010-2011, but we still have not come back from the highs of 2007.”

Peterswald expects to see a lot of upside in prices over the next few years. “In the more affordable range of housing we have seen really good ongoing demand for properties mainly because of low interest rates. We have seen property values retained and in some cases there has been marginal growth.’’

PRDnationwide national research director Dr Asti Mardiasmo says a decline in net overseas migration to Tasmania and Queensland may be another reason for their comparatively well-priced house and land pairings relatively close to the CBD.

“So these states need to entice people to come and live/buy there,’’ Dr Mardiasmo says.

She says both the Tasmanian and Queensland property markets represent good value for buyers because “they have not reached their peak’’ in terms of pricing. “Both states have a history of being more affordable choices.’’

Dr Mardiasmo says Adelaide also has proved to be a winner in the affordability stakes with a strong number of house and land packages under $500,000 relatively close to Adelaide’s central business district.

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