The City of Hobart, Kingborough and Clarence are the state’s top three council areas in terms of equity or value built up in homes, according to an exclusive new Housing Equity Report by Aussie Home Loans and CoreLogic RP Data.
Equity is simply the difference between the debt held on a property (based on Aussie’s mortgage data), against what the property is currently valued at (according to CoreLogic).
The City of Hobart’s home equity level has reached an average of 39.4 per cent or $155,259*, following by Kingborough (38.4 per cent) and Clarence (35.7 per cent).
The average home equity level in Tasmania properties has reached 32.7 per cent, with a dollar value of $95,427.
Top 5 and Bottom 5 council regions in Tasmania – percentage and dollar values
Kentish has recorded the lowest average home equity in Tasmania, with 23 per cent or $55,158, ranked just below Northern Midlands (25.7 per cent) and George Town (28.7 per cent).
Executive Chairman of Aussie, Mr John Symond, said “It is no surprise that the top four council areas in the state are located in Greater Hobart, as many people are now keen to live closer to the city centre.
“I believe that the best investment both for security and lifestyle is still real estate and I see no reason why this will change over the next decade, especially in view of the lower interest rate climate, lack of housing supply in the major cities and continuing population growth”, he added.
Property prices in Hobart have risen by a compounding rate of 6.5 per cent over the last 20 years.
Average level of home equity – state by state percentages and dollar values
Mr Tim Lawless, Research Director of CoreLogic RP Data, said “Economic conditions in the state have mitigated against higher equity levels compared with the rest of Australia. Another factor is the weaker long term rate of dwelling value appreciation compared with many other capitals. Also, the longer a property has been owned, the more time owners have had to experience price growth and reduce their mortgages”.
Average level of home equity – city by city in percentage and dollar terms