Homeowners and landlords in Launceston have been better off than those in Sydney over the past two decades, new research has revealed.
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The analysis, from buyer's agency Propertyology, found median house prices in Launceston grew by an average annual rate higher than that of Sydney over the 20 years ending in June.
Prices in the city have grown by an average of 7.4 per cent each year since July 1999, while growth in the NSW capital came in at 7.1 per cent.
Along with the high capital growth rates, Launceston's landlords saw their rental yield over that period increase by 5.4 per cent, compared to 3.1 per cent in Sydney.
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The findings follow a submission from the City of Launceston Council to an inquiry analysing regional inequality in Australia in January, which warned increasing house prices could put further pressure on those renting in the city's most disadvantaged areas.
Tasmania's affordable housing and social service groups have long warned about the impact of rental stress on those living throughout the state. Shelter Tasmania chief executive Pattie Chugg has put the number of low-income households living in rental stress at 60 per cent.
Propertyology head of research Simon Pressley said the new data largely dispelled the "myth" that investing in capital city real estate provided better potential than regional areas.
[Related: How to solve the housing crisis in Tasmania]
And among regional areas, Launceston is significant. A January report from property analytics firm CoreLogic, found Launceston had the highest property price growth in a regional area nationwide.
The growth in median house prices was familiar to the Real Estate Institute of Tasmania too, according to president Tony Collidge. Though prices in Hobart had grown faster still.
"I can certainly vouch that over the past 10 years Launceston has outperformed Sydney," he said.
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