By: Paul Simpson
18 May, 2018
RP Data research analyst Cameron Kusher highlights the top five most affordable suburbs for houses and units within 10 kilometres of Australia’s capital cities.
“Inner city suburbs are also generally better serviced by both essential and desirable amenities such as schools, medical services, shopping centres, social amenity, roads and public transport infrastructure,” he says.
There’s a large divergence in results across the cities, when looking at the most affordable median value suburbs in close proximity to the CBD. Sydney’s Wolli Creek, for example, has the lowest median house value at $710,303 (which is not very affordable) but in Melbourne the most affordable suburb is Bellfield at $533,252. In most other capital cities, except for Darwin the starting point for a house is significantly lower.
In many cities these areas are less desirable than other inner city suburbs however they’re close to the city and potentially have scope for urban renewal over the coming years says Kusher.
“Home values in inner-city areas are likely to continue to increase particularly as mortgage rates remain at such low levels,” he says.
And as a result more and more potential buyers are likely to be priced out of the inner city housing market.
“This scenario creates good opportunity for other city areas – if buyers can’t afford to purchase a home within the inner city, they will most likely look to those locations that tick as many of the inner city boxes, just at a lower price point than the inner city areas,” he says.
“Given this, suburbs featuring quality public transport connections, abundant retail and social amenity, quality schools and medical amenity will likely see renewed interest as inner city buyers look to these more affordable alternatives.”
Most affordable suburbs within 10km of capital city CBDs
(As of June 2014)
|REGION||SUBURB||MEDIAN VALUE||SUBURBS||MEDIAN VALUE|
|Brisbane||Chermside West||$471,657||Gordon Park||$344,776|
|Perth||Osborne Park||$463,414||Osborne Park||$379,757|