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This is the worst Aussie state to buy property

Samantha Menzies

The vast majority of Australian suburbs have undergone real increases in median house prices after inflation this century, with the big exception of suburbs in this one state.

N early 6 in 10 of suburbs in Tasmania lost value, according to an analysis by financial comparison site Mozo.com.au.

Also read: Is now the best time for Aussies to buy property?

Mozo’s results show the ACT was the strongest performer, with the highest average capital growth at 7.16% per annum and all suburbs coming in above the 2.49% needed to beat inflation.

In contrast, Tasmania’s average capital growth of just 2.36% per annum suggests the value of many properties has actually have gone backwards.

Meanwhile, the average median house price, after inflation, has actually fallen by $7,166 - the only Aussie state to have suffered a price decline over the period.

“Broadly speaking, real estate has been a sound investment across the mainland with 98% of Australia’s suburbs recording gains in value and average capital growth of 6.43% p.a.,” Mozo director Kirsty Lamont said.

Also read: 10 big factors affecting our property markets over the last decade

“However, Tassie claims 89 of the 93 suburbs that failed to reach the increase in value needed to stay ahead of inflation, and even its top 10 suburbs delivered gains well below the national average capital growth for the last 20 years.”

Average returns on property over the last 20 years by value and percentage

Source: Mozo.com.au