This article is from the Australian Property Journal archive
BUYING a house within 10km of the Sydney CBD will cost you more than $1 million even in the city’s most affordable suburbs, though smaller capitals are still offering Australians more choice.
Domain analysis based on its latest Domain House Price Report, has identified the most affordable suburbs to buy a house or unit within a 10km radius of the country’s capital city CBDs.
“Realistically, rising interest rates and inflation has meant that city living is somewhat out of reach for many Australians. However, there are still some affordable options for buyers close to the city, especially if buyers are willing to be flexible on their inner city location and property type,” said Nicola Powell, chief of research and economics at Domain.
“It’s great to see our cities have started to come back to life after last year’s lockdowns. We expect this momentum to continue into next year as many workers opt to spend more days working from city offices.”
Unsurprisingly, Sydney’s most affordable options for homes are well above the million dollar mark, with Campsie the cheapest at $1,350,000, followed by Arncliffe at $1,472,000.
Both sit 10km out from the CBD and have seen not insignificant price increases over the last year, with Campsie median prices lifting by 9.6% and Arncliffe 9.0%.
St Peters in the next most affordable at $1,567,500, though the suburb sits closer in at 6km from the CBD and has seen a more moderated annual increase at 2.8%.
Units in Sydney luckily provide a far more affordable option for buyers, with Canterbury sitting 10km out from the CBD and seeing an annual price decline of 2.3% to $650,000.
At a 9km distance, Hillsdale has seen a 3.6% annual decline for a median price of $660,000, while at 7km out, Eastlakes has seen a 10.6% increase to a median of $696,500.
Prices are comparatively far more affordable in Melbourne, with the cheapest suburb for houses, Maidstone, coming in at an $829,000 median, sitting 10km from the CBD.
West Footscray followed, sitting 9km out with a median of $930,000 and Coburg North sitting 10km out with a median of $956,000.
For units in Melbourne, Travancore has a median of $339,000 and sits just 6km out from the CBD, followed by Carlton on the city fringe at just 3km out, with a median of $405,000. Likewise, just 2km out from the CBD, Flemington offers a median of $424,000.
In Brisbane, sitting 10km out from the CBD, the most affordable suburb is Hemmant at $770,500 and Tingalpa at $815,000. While 9km away, Keperra reports a median of $839,000.
Brisbane’s unit market offers affordable options at the doorstep of the CBD, with Spring Hill just 1km out with a median of $430,000, Milton 2km and Alderley 5km out and both priced at a median $433,000.
In Perth, the cheapest suburb for house buyers, sitting 10km out, is Cannington with a median of $400,000, following at 9km out is Westminster at $405,000 and Osborne Park sitting 7km out and costing $410,000.
For units, Osborne Park offers a median of just $219,000, Wembley sitting 4km at $255,00 and Maylands also 4km out for $262,500.
Adelaide’s St Clair sits 9km out from the CBD and boasts an affordable house median of $537,750, followed by Woodville and Kilburn, both sitting 8km out and offering a median of $551,500 and $555,000 respectively.
For units, Plympton sits 6km out and offers a median of $285,000, Kurralta Park is 4km out with a median of $304,500 and Camden Park sits 7km out with a median of $334,963.
In Canberra’s more expensive market, the most affordable suburb sitting 10km out from its CBD is Higgins with a median of $867,500.
Coombs and Page follow, respectively sitting 9km and 8km from the CBD and costing $901,250 and $902,500.
Finally, in Darwin the most affordable house market is Berrimah, sitting 9km out from the CBD and offering a median of $235,000. Karama follows at $470,000 and 10km out and Stuart Park at $662,500 and just 2km out.
While sitting 3km out, Parap is the most affordable option for units in Darwin at $400,000, followed by Rapid Creek sitting 10km out for $403,500 and Larrakeyah 2km out with a median of $415,000.
“Every buyer will have a list of must-haves when deciding which suburb to buy in. Generally, close proximity to public transportation as well as key amenities like schools, cafes and shops and leafy green spaces should be at the top of property purchasers ‘wants and needs’ list,” said Alice Stolz, property editor at Domain.
Stolz advised buyers visit the suburbs within their budgets, taking in the local amenities, cafes and shops.
“If your budget isn’t matching up, don’t be put off by slightly expanding your search to the outer city bubble. In the larger capitals, there are still plenty of affordable options within the 10-20km mark with strong links to quick public transport,” concluded Stolz.
