- List of suburbs were compiled based on 70% of the city's median house price
- Suburb choice is now widened thanks to lifestyle changes
- The first suburb is 29km from Sydney's CBD
Last year, property buyer agency network BuyersBuyers.com.au reported that for those with secure jobs and medium to long term outlooks, every capital city in Australia represented a property buying opportunity.
Today, a year on, co-founder Pete Wargent has noted an exceptional strong 12 months of growth in the capital city markets. Despite year-on-year price growth of 18.4%, and strong growth in many regional markets, he still believes there still affordable opportunities for open-minded buyers.
“Many homebuyers are also now taking advantage of the COVID-19 landscape shifts and are taking the opportunity to work from home or remotely, which opens up a greater range of suburb choice,” Mr Wargent said.
A list of suburbs where prices are around 70% of the respective capital city’s median has been compiled by Riskwise Property Research. Mr Wargent suggests these represent sound value while being relatively close to the respective central business district – or the south-east corridor in the case of Queensland.
“Of course, there are cheaper suburbs in more distant or less favoured locations but buying in the lowest quartile of the housing market can sometimes come with its own challenges and risks,” he added.
Affordable Aussie ‘burbs
The first three suburbs (above) are located in Sydney with Greenfield Park, 29 kilometres from the CBD, which has a median of $821,501 according to Riskwise, the first followed by Blaxland and Bateau Bay, both of which are over 50 kilometres from the Sydney CBD.
However, the suburb has witnessed 20.5% growth in the past year and 32.2% over the past five years, with the other two also recording significant growth.
“In New South Wales, parts of the Central Coast region, Illawarra, and Sydney’s Outer West areas, including the Blue Mountains, were deemed more affordable, with houses coming in between $800,000 and $900,000 compared to Greater Sydney’s median house price which now sits around $1.2 million,” said Mr Wargent.
“For example, despite recording solid capital growth of 41 per cent over the past five years, Blaxland in the Blue Mountains still has a median housing price of under $850,000.”
Pete Wargent, BuyersBuyers.com.au
He added that while Blaxland may be a difficult commute for those employed in central Sydney, given employment opportunities do exist in the area, and flexible working arrangements are increasingly becoming the norm, this may not be a dealbreaker.
Many solid detached homes can still be bought at around the $800,000 mark in the area, with SQM Research data shows asking prices for three-bedroom houses in Greenfield Park have fluctuated from $700,000 to almost $900,000 this year so far.
Greenfield Park -2176
Next on the list is Hastings, on the Mornington Peninsula, followed by Cranbourne East and Lara, in Victoria.
“In Victoria, some suburbs on the Mornington Peninsula and in Geelong have also been seen as affordable areas with prices in the $600,000s compared to Greater Melbourne of above $900,000 although price growth has accelerated in Mornington over the past year,” said Mr Wargent.
“Both regions are in easy reach of the city and have enjoyed capital growth of, on average, around 50 per cent over the past five years.”
“However, prices have been rising quickly. For buyers with a tighter budget, Cranbourne North still offers an opportunity to get into the market, with a median house price of under $650,000.”
In terms of other markets, Mr Wargent suggested Acacia Ridge, which is 15 kilometres south of Brisbane’s CBD, as a worthwhile opportunity for buyers in southeast Queensland. Holden Hil is rated as the best suburb in Greater Adelaide with Kambah the best in Canberra.
The other capital cities aren’t referred to in the top ten.
“With first homebuyer incentives in play we expected affordable suburbs to be sharply in focus,” Mr Wargent said.
“In addition, ultra-low interest rates have created a unique environment where buying a house in many areas is cheaper than paying rent on one.”
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To check out the ten most affordable suburbs in Victoria, click here.
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