Broker News

Most affordable suburbs revealed

A new study from CoreLogic and Aussie Home Loans has revealed a list of the most affordable suburbs nationally, as well as the most affordable suburbs within 10 to 20km of each capital city.

Victoria has five of the top 10 most affordable suburbs nationally, with three in Tasmania, and one in both Queensland and Western Australia.

The top three most affordable suburbs were in Tasmania and all had a median price of less than $100,000: Zeehan ($87,662), Queenstown ($90,200) and Rosebery ($91,310).

The study highlights the regions are all located at least 150km from the nearest capital city, with minimal economic diversity.

“It is not surprising that the most affordable housing markets with the lowest dwelling values and lowest mortgages are located in regions where jobs are scarce, land is plentiful and buyer demand is generally low,” says Aussie CEO, James Symond.

Despite this, Symond highlights the low prices offer housing opportunities with price tags and mortgages similar to the deposit required on a house in the large capital cities.

“Many of the most affordable areas are located in coastal locations, which are within comfortable driving distances from the capital cities along the eastern seaboard of Australia, such as Queensland’s Gold Coast,” adds Tim Lawless, research director of CoreLogic.

The most affordable suburbs within 10km of each capital city shows the huge gap in affordability in Sydney prices compared to the other capital cities, with Sydney’s Tempe having a median house price of $1,151,122 compared to Melbourne’s Braybrook ($613,399).

It is a similar case for the most affordable suburbs within 20km of each capital city, with Sydney’s Granville having a median house price of $766,910 compared to the second highest priced most affordable capital city suburb – Northern Territory’s Gray ($456,130).

“Across the capital cities, Hobart stands out as providing the most affordable options, with five suburbs showing a median house value that is less than $200,000, all located within either the Brighton or Clarence council regions,” says Lawless.

According to CoreLogic data, Adelaide is the most affordable mainland capital city in Australia, with a median house value of $442,081, compared to Sydney’s median house value of $993,302.

Aussie notes there are 12 suburbs across the Sydney metro area with a median house value that is under $500,000 with Tregear ($432,282), Willmot ($435,539) and Lethbridge Park ($437,147) offering the most affordable median values – each located roughly 40km from Sydney’s CBD.

“For those buyers looking for a house closer to the city centre, there are two suburbs within 20km of the Sydney CBD with a median house value that is less than $800,000 and 11 suburbs with a median house value under $900,000,” says Symond.

“Granville is the most affordable suburb within 20km of the CBD with a median house value of $766,910.”

Published on: Monday, December 05, 2016

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