- Weekly asking house prices are still around $1.7 million in Sydney, despite the recent cooling of the market
- According to CoreLogic, even the lowest quartile of the market has house prices of $850,000
- Areas such as Liverpool and Bradbury can offer the cheapest housing in Sydney
It comes as no surprise that Sydney is by far the least affordable location in Australia, especially in the Eastern Suburbs. Globally, Hong Kong is the only other city to have more expensive housing.
SQM Research data shows that while there has been a decline in weekly asking house prices over the past few months, it is still around the $1.7 million mark.
Greater Sydney
[Select part of the chart to zoom in on various years, and ‘reset zoom’ button to return]
CoreLogic data shows that even at the lowest quartile, sales prices of homes are high at $850,000. This means for a 10% you need to save $85,000 or $170,000 for a 20% deposit if you wish to avoid lenders mortgage insurance.
At $850,000, you’ll be required to pay around $33,850 to cover transfer duty and government charges, although some changes to this have been proposed.
First-home buyers have a range of options available. The First Home Buyers Assistance Scheme allows eligible buyers to buy a new or existing home valued at $650,000 and pay no stamp duty.
For new or existing homes between this value and $800,000, first home buyers can apply for a concessional transfer duty rate.
Using CoreLogic, Canstar and Ryder Research Resources data, the top 10 cheapest suburbs that are affordable for first home buyers in Sydney have been found, which includes the use of certain metrics.
Locations on these lists must have good services and amenities, improving the desirability of a location. Key features include schools, shopping and good transport, with parks and green spaces. Places with significant spending on new infrastructure are also taken into account, as this increases the appeal of the location and bolsters economic activity and employment.
Locations close to large suburban employment nodes also feature, alongside those with strong local industry and business activity, including medical, retail and education facilities.
As a result of this, some suburbs on Sydney’s extreme outskirts are not included.
What are the Cheapest Suburbs in Sydney?
- Liverpool (Units) – $470,000
- Bradbury – $650,000
- Hillsdale (U) – $680,000
- Leumeah – $685,000
- Sutherland (U) – $685,000
- Doonside – $740,000
- St Marys – $760,000
- Mount Druitt – $770,000
- Kingswood – $770,000
- Lurnea – $800,000
Let’s look at each of these suburbs…
Liverpool
Liverpool, albeit units, makes the top of the list. It is one of the key centres in Sydney for infrastructure and jobs, including Liverpool Hospital, Westfield shopping centre, TAFE campus, the Liverpool bus station which is near a major commuter train station, along with various schools, colleges and sports facilities. As of May, there were over 500 unit sales, with prices typically in the $400,000’s.
Bradbury
The cheapest suburb on the list based on its median house price is Bradbury, located near the Campbelltown city centre. Along with being an exceptional area for major infrastructure and employment, it includes the Campbelltown Hospital, TAFE NSW, Western Sydney University, Campbelltown Mall, Macarthur Square Shopping Centre, alongside numerous schools, sports facilities, parks and a major commuter train station.
Demand is rising in Bradbury with vacancies low, with the area also benefiting from a strong green space corridor.
In Bradbury, a three-bedroom, one-bathroom house on a 376 sqm block is listed for sale, with the price guide beginning at $599,000. While this is above the median house price in Perth, this is well below the Sydney median of $1.XX million.
The house was built in the 1960s/70s yet has had some renovations over the past few years, including its kitchen.
“The home flows easily from one end to the next, with bedrooms, kitchen and bathroom connecting along the main hall,” said Ray White – Macarthur Group agent Omar Lababidi, who is tasked with selling the property.
“The kitchen is easily manoeuvred and leads right on out to the home’s private and family-ready backyard.
Hillsdale
While those seeking cheaper houses would need to focus on Sydney’s outer ring, units can get you significantly closer to the Sydney CBD and beaches. Hillsdale is a small suburb near Maroubra, just six kilometres from the Sydney CBD, near the beach and National Park. Both, Westfield Eastgardens and Heffron Park sport facilities are nearby. Sydney Airport and tow golf courses are close too.
Leumeah, 2560
Leumeah, also in the Campbelltown area, appears on the list thanks to its affordability, transport and proximity to business parks and commercial-industrial estates.
The location benefits from the Campbelltown infrastructure and jobs market. The green space corridor along Smiths Creek and sports facilities near the Leumeah train station also influence the lifestyle of the area.
On Eliza Way in Leumeah, there is a three-bedroom, one-bathroom brick home for sale, with a $695,000 listing price. Located on a quiet cul-de-sac the house is less than a kilometre from the train station, Leumeah Shopping Centre and the local school.
The house has a single car garage, and a large backyard too.
Sutherland
While Sutherland Shire is expensive for houses, buyers have inundated the area thanks to its relative unit affordability alongside a lifestyle based around national parks and the water. Sutherland is a hub with a range of parks, sport facilities, schools and train links. Bordering the Royal National Park, units can be secured in the area in the $600,000s.
Doonside
Doonside, located in Western Sydney, is near one of the most dynamic economies in Australia and is at the centre of massive infrastructure spending, such as the new Western Sydney International Nancy-Bird Walton Airport. Houses remain relatively affordable, with many options available in the $600,000’s and $700,000’s.
“Doonside is nicely situated near the Blacktown CBD, on the commuter train line and close to the intersection of major motorways, where there are multiple big jobs zones. It also has a vast area of green space,” said Terry Ryder.
St Marys
Thanks to commuter rail, the Great Western Highway and the M4 Western Motorway, St Marys is a well-connected suburb while remaining relatively affordable with houses in the $600,000’s and $700,000’s.
There is a large education precinct at Werrington, sports facilities, a parkland, and several shopping centres.
Mount Druitt
Mount Druitt, 43 kilometres west of the Sydney CBD, benefits from the large infrastructure investment into Western Sydney. The suburb has the region’s major hospital, an education campus, a Westfield shopping centre, sports facilities and a commuter train station.
The NSW government alone has announced $1 billion worth of infrastructure for Mount Druitt. Houses typically start in the $700,000, with units around $400,000.
Kingswood
Kingswood, 52 kilometres west of the Sydney CBD, is set to benefit from a range of community infrastructure and the employment it generates, It benefits from being near the Penrith CBD, and includes the major education precinct, which includes Western Sydney University and TAFE NSW. Nepean Hospital is also in the suburb. Along with a commuter rail station, it benefits from the Great Western Highway and the M4 Motorway.
On Cosgrove Crescent in Kingswood, there is a two-bedroom townhouse for sale, with a price guide of $449,000 to $479,000.
Being located right near Great Western Highway, the house is within walking distance to Nepean Hospital and Western Sydney University.
Lurnea
Located 35 kilometres southwest of Sydney’s CBD, Lurnea is a well-connected suburb thanks to being near the intersection of Westlink and the M5 Southwest Motorway , with train stations in the nearby suburbs of Liverpool and Casula.
Within easy reach are a range of large business parks and commercial-industrial estates, along with the facilities and infrastructure in the Liverpool CBD.
The area also benefits from numerous schools and major green space corridors.
