australian real estate market five most affordable suburbs under 550k revealed
Affordable homes in Australia are becoming tougher to find. Image: The Property Tribune.
  • Home prices recently recorded another uptick in values.
  • The five locations includes outer ring suburbs in capital cities, and large regional hubs.
  • The suburbs are spread across the nation.

Property prices across Australia continued to soar, with recent reports recording upticks in Australian home prices across the board.

According to Ray White, Australia’s dwelling prices across the capitals rose 0.5% over August, and 5% for yearly growth. The CoreLogic latest Home Value Index (HVI) report recorded a 0.8% rise in home values across Australia*.

It is little solace for those looking for affordable homes along the east coast, with Queensland recently recording strong levels of price growth.

Today, the Real Estate Institute of Queensland (REIQ) released its quarterly data for the Queensland real estate market, with house prices leaping 4.62% for the June quarter and unit prices rising 3%; units rose by almost 7% year-on-year.

“It’s unsurprising that buyers are increasingly recognising the value and appeal of apartments, particularly those wanting to get out of the strained rental market and onto the property ladder,” said REIQ CEO, Antonia Mercorella.

Australia’s house prices are not expected to fall by much either, with PropTrack forecasting 2% to 5% growth across the nation by December this year, and between 0% to 3% growth next year.

Another factor weighing on investors’ and buyers’ minds is the interest rate.

While the cash rate was kept at 4.10% this month, the reprieve is yet to be felt. It is also uncertain whether another rate rise will come, with experts broadly predicting at least one or two more.

LJ Hooker head of research, Matthew Tiller, previously told The Property Tribune that if inflation ‘gets sticky’ then rates may head up again. Another expert added that should any negative data or events occur prior to Christmas, rates could head up again.

Affordability front of mind

Homebuying on a budget is incredibly tough at the moment, but there may be hope.

“In many parts of Australia, especially our biggest capital cities, it’s extremely difficult to find a property priced under $550,000 – but there are suburbs where affordable homes are still available,” said Adviseable Property Buyer Kate Hill.

“As buyers’ agents, we’re currently working with a range of clients where budget is a main consideration for them,” she added.

The cost-of-living crunch and the burden of higher interest rates have forced many prospective purchasers to tighten their belts, she said.

Kate Hill. Image: Supplied.

Those active in the market face strong competition, though, with a lack of supply and a rapidly growing pool of buyers.

“It’s tough out there are the moment, with the shallow pool of available properties for sale attracting a lot of attention,” said Hill.

“You need only follow weekend auctions in most big cities to see the hammer coming down on some eye-watering prices. Many of the sales we’re seeing are well above reserve.”

“I’ve identified five suburbs across the country that offer opportunities worth exploring, but these are just a few of the promising areas a buyer’s agent can help sniff out.”

Five affordable Australian suburbs under $550,000

  1. Armadale, Perth,
  2. Darling Heights, Toowoomba,
  3. Delacombe, Ballarat,
  4. Munno Para, Adelaide, and
  5. Crestmead, Logan.

Armadale, Western Australia, 6112

An affordable pocket of the west, the suburb is located some 30 kilometres southeast of Perth and offers a strong sense of community, amenity, and connection, said Hill.

“The median house price of $338,500 has already risen by 12.8% in the past year, while the median unit price of $290,000 is also up 7.8%,” she noted.

“Investors can achieve solid gross yields right from the get-go, with the median house rent of $400 per week, up 14.3% year-on-year, offering 6.1%.”

“The situation is just as rosy with units, where the median of $377 per week delivers a 6.7% yield.”

Asking property prices for 6112, including Armadale

Darling Heights, Queensland, 4350

Hill said it was obvious why the Toowoomba suburb got its name, offering an abundance of natural beauty, elevated vistas, and a relaxed, peaceful vibe to boot.

“Far less tempered is the interest of investors, who see Darling Heights as a prime location to snap up a rental property – and it’s all thanks to the bustling University of Southern Queensland campus,” she said.

“The median house price here has surged by 19.4% in the past year to hit $513,500, while the median unit price is $315,000,” Hill said.

“A potential landlord could get a decent yield of 4.4% from the median house rent of $440 per week, while the median unit rent of $340 per week delivers a gross yield of 5.6%.”

High demand and a limited supply have seen unit rents climb 13.3% in just a year, while house rents are up 12.8% year-on-year.

“As well as the uni campus, Darling Heights is also just a stone’s throw away from the CBD. Its youthful vibe makes it a possible destination for first-home buyers, too,” Hill added.

Asking property prices for 4350, including Darling Heights

Delacombe, Victoria, 3356

The rapidly growing Ballarat suburb is in the midst of a transformation thanks to an ambitious $50 million masterplan developed by the state government, according to Hill.

“As part of the Big Housing Build scheme, more than 100 new modern and energy efficient dwellings will be built, sparking the construction of high-quality streets and open public spaces,” she said.

“Government agency, Homes Victoria, intends the masterplan to lay the groundwork for the long-term development of the suburb, benefiting current and future homeowners,” Hill said.

Delacombe’s median house price of $540,000 has dipped 6.1% over the past 12 months, largely in line with market trends seen in major regional areas, she noted.

“That relatively affordable price tag will see first-home buyers, young families, and investors increasingly prioritise this patch.”

“But rental prices are rising – the median house rent of $410 is up by 7.9% in the past year.

“Detached dwellings dominate the suburb, so an accurate read on unit performance is unavailable.”

Asking property prices for 3356, including Delacombe

Munno Para, South Australia, 5115

Located in Adelaide’s northern suburbs, Munno Para has an abundance of green space, safe streets, good amenities and plenty of parks.

“Despite the appeal, the median house price is just $390,000 – although it has leapt by 15.4% in the past 12 months,” said Hill.

“First-home buyers are increasingly flocking to Munno Para because of its sense of community, affordable price tag and a relatively convenient proximity to the CBD via good road connections,” noted Hill.

“Investors are sitting up and paying attention, too, with a median house rent of $420 per week offering a gross 5.6% yield.”

Asking property prices for 5115, including Munno Para

Crestmead, Queensland, 4132

Located within a peaceful pocket of the City of Logan, the suburb is a favourite with families, owing to its abundance of parks, greenspaces, leafy streets, and a handful of good schools.

“It also boasts exceptional connectivity to both Brisbane and the Gold Coast thanks to its proximity to the Logan Motorway and Gateway Motorway interchanges,” Hill said.

“The median house price of $524,000 has risen by 6.9% in the past year. Despite sharp growth over recent years – the median was just $325,000 in July 2020 – it remains undervalued given its appealing attributes.”

The median house rent of $470 per week reflects this popularity, with a staggering 14.6% increase in the past 12 months. That delivers investors a 4.6% gross yield, she said.

“Among some exciting infrastructure projects is the mega Crestmead Logistics Estate – a $1.5 billion project delivering 650,000 sqm warehousing, business and manufacturing space.”

“Construction of the final stages is set to be completed within the next few years.”

Asking property prices for 4132, including Crestmead

~~

See our other house price predictions here:

UPDATE: Australia’s housing market values have returned to $10 trillion, previously reaching the incredible value in June 2022. A growing number of homes (11 million) and a rising median price ($732,886) were major drivers of the uplift.

UPDATE: Among several wins for affordable housing, the recent New South Wales state budget will bring a major boost to supply and supporting infrastructure, along with the multiple measures announced earlier this month when the Housing Australia Future Fund finally passed through the Federal Parliament.

UPDATE: Determining the market value is an important skill that can help with negotiating and finding out whether you are paying too much for a property. More details on buying a property under the market value here.



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