Housing Affordability In Tasmania - Article




The Master Builders Association says Hobart is experiencing a land price bubble that is putting home ownership out of reach for many young Tasmanians.

In the past decade the average price of a block of land in Hobart has quadrupled to $130,000.

The price has been driven up by a population boom and a shortage of available land.

But The Master Builders Association says the market has caught up. Executive officer, Michael Kerschbaum says blocks close to Hobart should be available for under $100,000.

"And we certainly are facing a land bubble and until those land prices come back down to earth and become more realistic we really won't have any satisfactory resolution to the land price issue," he said.

Figures released yesterday show housing affordability in Hobart dropped by almost 30 per cent, more than any other capital city. In regional Tasmania the figure was 17 per cent.

It has prompted calls for the major political parties to help more young people into their first home.

The Housing Industry Association's (HIA) executive director, Stuart Clues, says politicians need to commit to policies to make housing affordability a reality for young people.

"You know the real challenge as we head into a state election is to be asking the government and the other buying parties what are they going to do to put a roof over young people's heads and get them out of that rental cycle," he said.

"[We have] been talking about housing affordability for nigh on ten years across the nation and you know it's just an issue where those that are in the market continue to prosper with capital gains and those trying to get into the market are going to struggle in terms of pulling together a deposit or staying within a very tight rental market where you've got vacancy rates down 1.5 to 2 per cent."

Mr Clues says opening up more affordable land would see the return of home affordability.

But Real Estate Institute of Tasmania CEO, Martin Harris says state and local governments also need to work together to make sure the infrastructure is in place.

"If all those things don't happen, people won't live there anyway."

Mr Clues is urging the Reserve Bank board to keep interest rates on hold when it meets today.

"Certainly in this economic climate I don't think it's a time to be putting on a hand break particularly when we've got these sort of numbers coming through that show that people are really struggling to get into the market and those that are in the market are finding it quite stressful in terms of servicing loans or paying rent."
so in a decade land prices have risen from about $45k to $130k and it's *still* unaffordable?

sorry, in Perth you'd be lucky (LUCKY!) to get 200sqm in an ex-state housing suburb for that.