Hobart and Melbourne rents still cost the same

Hobart renters are carrying heavy weekly bills comparable to major city prices like Melbourne.

WHILE Hobart rents have reduced this year, they are far from affordable.

In its latest rental report, CoreLogic found the southernmost capital city’s median rent was only a slither behind Melbourne — just $1 different at $443 a week.

Hobart rents were more expensive than Adelaide, Perth and Brisbane.

But when you factor in wages, that is where Apple Isle residents cannot compete.

The latest ABS Average Weekly Earnings report showed Tasmanians were paid less than every other state.

And at $1488.10 weekly, Tassie was also well below the national figure of $1713.90.

Just $1 difference between Melbourne and Hobart rents.

Alongside Melbourne, CoreLogic revealed Hobart’s rental sector has had a quarterly reduction of -0.2 per cent, which was the largest drop-off in prices across Australia.

Hobart rents also slid backwards by -2.6 per cent over the 12 months through the September quarter — a nation-leading figure.

Tim Lawless, CoreLogic head of research, said an increase in supply in recent months “continues to weigh on asking rents”.

While some cities have seen hardly any change in rental yields — comparing current figures to 12 months ago — Hobart has receded from 5.17 per cent to 4.67 per cent.

However, this figure is higher than the nationwide gross rental yield of 3.77 per cent, down from 3.99 per cent at the same time last year.

Although national rental yields are down slightly on last year’s levels, Tim said mortgage rates had reduced by a larger amount.

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“Investor loans are generally attracting a mortgage rate of around 2.9 per cent compared with a gross yield across most capital cities that is above 4 per cent for houses and 5 per cent for units,” he said.

“This implies fewer investors would be relying on a negative gearing strategy.”

Meanwhile, new research from financial service group Aussie has revealed a number of suburbs where Tasmanians pay less in mortgage repayments than they would in rent.

Its data showed houses in about half of Hobart’s suburbs were more affordable for homeowners than renters, a figure that was almost identical to that of five years ago.

Aussie’s Buy vs Rent report also showed the number of suburbs where a renter can find a unit that was cheaper than a mortgage had decreased by 9 per cent compared to 2015.

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