Top 10 most affordable suburbs throughout Australia
16 Oct 2020

Houses in almost every capital city represent incredible buying opportunities for those with secured jobs a medium to long-term strategy.

RiskWise Property Research has undertaken an indepth analysis into the housing market identifying suburbs that are around 70 per cent of the median price for that of the capital city, or in the case of Queensland, the southeast corridor.

RiskWise CEO Doron Peleg said the analysis clearly showed that houses, not units, represented solid buying opportunities for those with longer term strategies and this was reflected in the latest Westpac Consumer House Price Expectations Index which saw a surge of 21.7 per cent in September after tumbling 51 per cent in April.

"This is expected to increase the demand for houses, particular affordable ones, however units continue to carry a materially high level of risk," Mr Peleg said.

"There are many opportunities for buyers looking for houses with high land value as a proportion of the property, and a strong component of scarcity, especially if they intended to hold on to the property for several years or longer.

"In addition, the current ultra-low interest rates have created a unique environment where buying a house in many areas is cheaper than paying rent on one."

 In NSW, the Central Coast region, Illawarra and Sydney's Outer West areas, including the Blue Mountains, were deemed more affordable with houses coming in between $700,000 and $800,000 compared to Greater Sydney's median of $1.01 million.

For example, Horningsea Park in Sydney - South West has a median price just under $800,000 and solid price growth of 20.8 per cent in five years, particularly considering the recent volatility in the Sydney market, with a distance of only 35km from the city centre. Meanwhile, the increasingly popular Central Coast suburb of Bateau Bay has a median price of $728,000 and basked in 50 per cent price growth in the last five years. The region is a drawcard to homebuyers seeking lifestyle and as more people are able to work remotely is gaining in reputation.

Both the outer western and southern suburbs of Sydney and Melbourne offer more affordable properties with relatively good access to the CBD and this is a key driver for homebuyers.

Victoria's Morning Peninsula and Geelong are also seen as affordable areas with prices in the $500,000s compared to Greater Melbourne of just over $802,500. Both regions are in easy reach of the city and have enjoyed capital growth of, on average, around 50 per cent over the last five years.

In southeast Queensland, which has a median price for houses in Greater Brisbane of $557,000, affordable areas with good access to the CBD include Logan and Moreton Bay South. In fact, the median house price in the Logan suburb of Hillcrest is just under $393,000 and has enjoyed five-year capital growth of 15.2 per cent.

In South Australia, Adelaide North had the highest number of affordable houses. Willaston, with a median price of $333,000 came in at the most affordable with five-year capital growth of 10 per cent. The median price for Greater Adelaide is $476,600.

While the Perth market is not a strong performer, there are still some areas delivering both affordability and have demonstrated relatively good growth in the past five years. The most affordable suburb was Camillo in Perth – South East with a median price of $241,000 compared to the city's median price of $460,000.

In the ACT, with a median price of $716,000, houses performed strongly. The territory is "almost bullet proof for major shocks", Mr Peleg said, largely thanks to an extremely robust job market with most employment linked in some way to the government and strong economic growth. However, many affordable areas achieved between 28 and 37 per cent capital growth over the last five years.

In Hobart there were many affordable areas that came in well below the median price of $516,000. Glenorchy enjoyed a whopping 74 per cent capital growth in five years and has a median price of $413,000. Many homebuyers are also now taking advantage of the COVID-19 lockdown and are working remote from home.

For the top 10 affordable suburbs in the ACT click here

For the top 10 affordable suburbs in HOBART click here

For the top 10 affordable suburbs in VICTORIA click here

For the top 10 affordable suburbs in SOUTH EAST QUEENSLAND click here

For the top 10 affordable suburbs in WESTERN AUSTRALIA click here

For the top 10 affordable suburbs in SOUTH AUSTRALIA click here

For the top 10 affordable suburbs in NSW click here

Please Note: This list is based on suburbs that are around 70% of the medium price (i.e. not the most affordable suburbs in each capital city) and suburbs with at least 1000 houses in the existing stock. It should be noted that the lower end of the market presents different types of risks.