Melbourne: It`s bad news for aspiring home buyers in Melbourne, as the city has been officially declared the least affordable city in Australia.
"But if buyers are prepared to move to Tasmania, the outlook in Hobart is a lot better," says the report released Wednesday by Australia`s Housing Industry Association (HIA).
The report said Melbourne overtook Sydney to take the dubious title of least affordable housing city in March and has stayed there since, according to a daily.
HIA chief economist Harley Dale said this was due to faster growth in Melbourne`s house prices and lower average incomes in Melbourne than in Sydney.
The median house price in Melbourne is $470,000 while that of Sydney is $505,000.
The list shows the next least affordable city is Perth, followed by the Australian Capital Territory of Canberra, Brisbane and Adelaide.
Hobart is the country`s most affordable city with a median house price of $325,000.