Looking for an affordable property? Our list of the top 10 affordable suburbs in New South Wales right now, might help you.
The Sydney property market is still performing strongly despite the COVID-19 virus and related impacts on the Australian economy. Prices have increased over the past year, but there are still areas where bargains can be found. If you have a long-term strategy, you can expect solid capital growth over the coming few years.
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With mortgage rates still close to the lowest on record, there are some opportunities for those with good savings and a level of employment security. In addition, the current ultra-low interest rates have created a unique environment where buying a house in many areas of the state is cheaper than paying rent.
First home buyers are still active in the market and are competing with investors for low levels of stock. More affordable areas have been sharply in focus as the number of first home buyers in the market has recently surged to decade highs, and this trend is expected to continue.
RiskWise Property Research has undertaken an in-depth analysis of the housing market, identifying New South Wales’s top 10 affordable suburbs. The report indicated that detached houses represented solid buying opportunities for those with long-term strategies.
There are decent 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 intend to hold on to the property for several years or longer. 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 challenges and risks.
The top 10 suburbs in New South Wales
The top 10 suburbs for affordable houses in New South Wales included a range of suburbs at around 70% of the median capital city house price for the state.
|Suburb||Postcode||SA4 Area||Distance from the CBD||Median Price||Median Capital City Price||1-Year Growth||5-Year Growth|
|Emu Heights||2750||Outer West and Blue Mountains||54km||$807,120||$1,186,518||21.5%||43.5%|
|Point Clare||2250||Central Coast||49km||$819,352||$1,186,518||23.8%||48.3%|
|Greenfield Park||2176||Sydney – South West||29km||$821,501||$1,186,518||20.5%||32.2%|
|Emu Plains||2750||Outer West and Blue Mountains||52km||$824,340||$1,186,518||18.8%||39.2%|
|Blaxland||2774||Outer West and Blue Mountains||56km||$841,822||$1,186,518||17.3%||41.4%|
|Bateau Bay||2261||Central Coast||59km||$842,047||$1,186,518||27.6%||61.8%|
|Wentworth Falls||2782||Outer West and Blue Mountains||79km||$843,498||$1,186,518||25.3%||51.8%|
The Central Coast region and Sydney’s Outer West areas, including the Blue Mountains, have made it into the table with houses coming in between $800,000 and $900,000, compared to Greater Sydney’s median of around $1.2 million.
For example, Greenfield Park in Sydney’ southwest has a median price of just under $800,000 and solid price growth of 32% in five years, with a distance of only around 30km from the city centre.
Sydney’s outer western and southern suburbs offer more affordable properties with relatively good access to the Central Business District, which is crucial for homebuyers.
Meanwhile, the increasingly popular Central Coast suburb of Bateau Bay has a median price of $842,000 and basked in surging 62%t price growth over the past five years. The Central Coast region has been a solid drawcard for homebuyers seeking a lifestyle. In addition, as more people can work remotely, this region is fast gaining a reputation as having good buying potential.
However, while houses in these areas represent solid buying opportunities, units continued to carry a materially higher level of risk, on average.
Interested in finding out what the top ten suburbs in another state are?
Check out the top 10 affordable suburbs in Victoria
Check out the top 10 affordable suburbs in southeast Queensland
Check out the top 10 affordable suburbs in South Australia
Check out the top 10 affordable suburbs in the Australian Capital Territory
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