- Despite rising rates, mortgage servicing remains possible for some suburbs
- Regional areas offer affordable mortgage repayments relative to incomes
- Units in certain suburbs, like Mosman Park and West End, are also affordable options
Despite interest rates surging at a record pace over the past 14 months, it is still possible to comfortably service a mortgage in some locations according to new data.
PropTrack has revealed the ‘most serviceable’ suburbs to own a house or unit with regional areas again proving they are still affordable to average buyers.
Across the country, Fisherman Bay in regional South Australia, was found to have the smallest mortgage repayments relative to incomes.
Monthly house mortgage repayments of $270 are 2.7% of the average total income in the area which is $61,000 per year.
Kambalda West in regional Western Australia was second with monthly house mortgage repayments of $670 which were just 4.4% of the $92,000 average total income in the area.
Blackwater in regional Queensland had monthly house mortgage repayments of $860 which was just 5.2% of the $98,900 average income in the area.
Other locations that were also affordable included Charleville, Moura and Cloncurry in Queensland, Roxby Downs and Port Pirie West in South Australia and Cobar and Broken Hill in New South Wales.
Most serviceable suburbs – houses
| Suburb | Property type | City/region | Median sale price (12 months to end May) | Average total income | Current mortgage repayments | Mortgage repayments as a share of income (%) |
| Fisherman Bay | House | Rest of SA | $60,000 | $61,000 | $270 | 2.7% |
| Kambalda West | House | Rest of WA | $140,000 | $92,000 | $670 | 4.4% |
| Blackwater | House | Rest of Qld | $180,000 | $98,900 | $860 | 5.2% |
| Charleville | House | Rest of Qld | $150,000 | $62,300 | $710 | 6.9% |
| Roxby Downs | House | Rest of SA | $280,000 | $112,400 | $1,320 | 7.0% |
| Moura | House | Rest of Qld | $185,000 | $74,100 | $880 | 7.1% |
| Cloncurry | House | Rest of Qld | $220,000 | $85,100 | $1,050 | 7.4% |
| Cobar | House | Rest of NSW | $200,000 | $75,600 | $950 | 7.5% |
| Port Pirie West | House | Rest of SA | $160,000 | $59,700 | $760 | 7.6% |
| Broken Hill | House | Rest of NSW | $180,000 | $66,200 | $860 | 7.7% |
Source: PropTrack.
Affordability has worsened
PropTrack Economist Angus Moore said mortgage repayments have risen very sharply in the past 14 months as the RBA has raised rates very quickly and mortgage serviceability – mortgage repayments relative to income – has worsened.
“There are still some parts of Australia where mortgages are still quite affordable relative to suburb average incomes. These are mostly in regional areas, where prices are lower.”
Angus Moore, PropTrack Economist
“But even in the capital cities, there are some pockets where mortgage costs remain on the more affordable side relative to incomes.
“These are typically in outer suburban areas like the outer west or Central Coast in Sydney, the west in Melbourne, or Ipswich in Brisbane.”
Units are more affordable
For units, there were also a number of higher-profile suburbs that made the list.
Units in the Western Australian suburb of Mosman Park were just $350,000 compared to the typical income in the area of $170,000.
While across Queensland, South Gladstone, Emerald and West End were also affordable based on average incomes.
Most serviceable suburbs – units
| Suburb | Property type | City/region | Median sale price (12 months to end May) | Average total income | Current mortgage repayments | Mortgage repayments as a share of income (%) |
| Mosman Park | Unit | Greater Perth | $350,000 | $170,200 | $1,660 | 5.9% |
| South Gladstone | Unit | Rest of Qld | $170,000 | $78,100 | $810 | 6.2% |
| Emerald | Unit | Rest of Qld | $200,000 | $89,700 | $950 | 6.4% |
| West End | Unit | Rest of Qld | $215,000 | $85,700 | $1,020 | 7.2% |
| Wembley | Unit | Greater Perth | $290,000 | $114,000 | $1,380 | 7.3% |
| South Hedland | Unit | Rest of WA | $260,000 | $98,700 | $1,240 | 7.5% |
| Cottesloe | Unit | Greater Perth | $910,000 | $331,100 | $4,320 | 7.8% |
| Manunda | Unit | Rest of Qld | $195,000 | $69,200 | $920 | 8.0% |
| Hermit Park | Unit | Rest of Qld | $200,000 | $68,700 | $950 | 8.3% |
| Bungalow | Unit | Rest of Qld | $205,000 | $69,200 | $970 | 8.4% |
Source: PropTrack
Moore said that units in some very prestigious markets (such as Paddington and Vaucluse) end up looking affordable in this list, though this is reflective of incomes.
“Average incomes in these areas are quite high (in excess of $200,000 in some cases); but the people buying units in these areas are probably not earning that income.”
The research looks at mortgage repayments on a median-priced house/unit in the suburb, as a share of the average total income for the suburb.
Mortgage repayments were calculated assuming a 20% deposit, 30 year loan term, at an interest rate of 5.91% (based on RBA data on average new mortgage rates). Income is based on total income from the ATO (which is broader than just wages/salaries) for the 2020/21 financial year, grown forward to today using growth in the Wage Price Index for a single person.
The share assumes a two-person household with both household members earning average total income for the suburb.
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