Top affordable and liveable suburbs for first half of 2019 revealed

This was followed by Sydney with an average liveability cost difference of 3 per cent, followed by Hobart with an average liveability cost difference of 23 per cent, and then Melbourne came in with the highest average liveability cost difference of 35 per cent.

The proportion of affordable properties (priced at $500,000 or lower) over the last 12 months increased the most in Brisbane from 10.6 per cent in the 1st Half 2018 Report up to 42.4 per cent in the 1st Half 2019 Report, while it also increased in Melbourne from 1.9 per cent to 4 per cent and Sydney from 0 per cent up to 0.5 per cent.

In Hobart, the most affordable bracket (from $1 to $350,000) also saw a decrease from 26.1 per cent in the 1st Half 2018 Hobart Report to 10.2 per cent in the 1st Half 2019 Hobart Report.

Meanwhile, premium markets in Sydney, Melbourne and Brisbane, priced at above $2 million, declined over the last 12 months, while they increased in Hobart, priced above $800,000.

The decline in Sydney in particular, the report noted, was the largest for the last 12 months to the first half of 2019 from 35.8 per cent to 25.9 per cent.

“This further confirms a cooling in the Sydney property market, which is seeing it return to a more sustainable level of growth,” the report stated.

However, the increase in premium Hobart property of 6.5 per cent to 10.2 per cent over the last 12 months may be showing a shift in buying strategy.

“There may be a concentrated shift in buyer activity across capital cities, creating more affordability in Brisbane, Sydney and Melbourne, and causing price hikes in Hobart. Although this has been a recurring pattern over the past 12 months, we are now seeing definite results from this activity,” the report noted.

“Hobart was the only capital city where the percentage premium added to its affordable and liveable suburbs had to be above what was added to the other states. This was in order to reach the Hobart median price (as per affordability criteria). This means that there soon needs to be a strategic rethink of infrastructure development in Hobart and its surrounding areas.”

The PRDnationwide Affordable and Liveable Property Guides 1st Half 2019 series aims to identify affordable and liveable suburbs within 20 kilometre of each capital city’s CBD (or 10 km for Hobart). Considering all methodology criteria (property trends, investment potential, affordability, project development and liveability factors), Table 3 identifies key affordable and liveable suburbs that property watchers should look out for.

The report also provided a list of the most affordable and liveable house and unit markets across Queensland, NSW, Victoria and Hobart for the first quarter of 2019:

“In general, Sydney and Melbourne have the highest entry prices, yet the lowest rental yields. This is a refreshing change from the 1st Half 2018 and 2nd Half 2018 reports, in which Sydney took out this title,” the report stated.

“Despite a shift towards more premium pricing within the local Hobart market, it still provides the most affordable option and highest rental yield nationally.

“However, some Hobart suburbs have recorded similar median prices to Brisbane in the 1st half of 2019, which confirms its swing towards a higher-priced property market.”