Finding a house or unit within 20km of the capital city that fits a small budget can be difficult. In this property pulse by RP Data we highlight the suburbs located 20km or less from the CBD of each capital city where the median price of a house is lower than $450,000 and unit markets with a median price lower than $350,000.
Across the combined capital cities there are opportunities to purchase homes at prices below city-wide median prices in locations which are still relatively close to the city centre. Of course in the more expensive centres these opportunities are more difficult to come across however, there are still opportunities within 20km of the city centre.
Sydney, Melbourne and Canberra
Across the combined capital cities, 34.8% of suburbs within 20km of the respective capital city centre have a median house price below $500,000 and for units the figure is a higher 73.6%. These figures indicate that price sensitive purchasers still have some options closer to the city centre, in particular if they are prepared to purchase a unit.
It must be pointed out that across individual cities the proportion of homes priced below $500,000 less than 20km from the city centre are quite varied, particularly for houses. Only 3.7% of suburbs less than 20km from the centre of Sydney have a median house price below $500,000 and the figures are also relatively low in; Melbourne (21.7%) and Canberra (25.6%). These results highlight both the relatively high cost of houses in these cities and subsequently densification of inner city areas is occurring. For units, 42.5% of suburbs within 20km of the Sydney city centre have a median price below $500,000 while in each other capital city more than 65% of suburbs have a median price below $500,000.
Looking at the most affordable suburbs for median house prices across each city there are some clear trends in the results. Most of the suburbs are located more than 10km from the city centre the exceptions are the flood affected suburb of Rocklea in Brisbane and Risdon Vale in Hobart.
The most affordable median house priced suburbs within 20km of the city centre also tend to be found in select council areas and regions. In Sydney they are found in Parramatta and Bankstown, in Melbourne it is Hume and Brimbank, in Brisbane it is to the south and west of the city, in Adelaide it is Salisbury and Port Adelaide and in Perth the suburbs are situated in the Swan and Gosnells council areas.
Tasmania most affordable
The cheapest median house prices within 20km of a capital city centre are found within Hobart followed by Adelaide and Brisbane. On the other hand, prices tend to be much higher in Sydney and Canberra. The suburb with the most affordable median house price within 20km of a capital city is Herdsman Cove in Hobart which is situated 16km from the city centre and has a median price of just $138,000.
Across the unit market there are also some fairly clear trends however, the most affordable suburbs tend to be a little closer to the city centre than they were for units. In fact, 10 of the 40 suburbs listed as most affordable across each capital city are located less than 10km from the city centre.
Once again, in some instances the most affordable suburbs are clustered in particular council areas however, they aren’t as heavily concentrated in one or a couple of areas as the housing market was.
Brisbane, Adelaide and Hobart
The unit market also reflects the housing market in that the most affordable units tend to be found in Brisbane, Adelaide and Hobart while they tend to be more expensive in Canberra and Darwin and to a lesser degree in Sydney. The suburb located less than 20km from the city centre with the lowest median unit price is Woodridge in Brisbane with a median unit price of $190,000 and it is situated 19km south of the city.
Overall, the results show that some affordable housing options within 20km of each capital cities centre do still exist. Examples of these lower priced suburbs are available across each city, however in most cases they are likely to be located further away from the city centre and have less local amenity than those suburbs closer in and more expensive. The point is that price sensitive purchasers should not give up completely on purchasing a home relatively close to the city centre; it will just take some time to find and may need some work. Alternatively, the unit market offers much more affordable housing options for those on a lower budget or looking to buy even closer to the heart of the city.
Read the full report from RP Data.