Half-price houses: 85 affordable suburbs where homes costs half as much as in the capitals

Properties have never been more expensive across most of the country, but there are still plenty of places where you can buy a house for half as much as a typical capital city home.

Home prices in Sydney, Perth, Brisbane and Adelaide are at record highs, according to the latest PropTrack Home Price Index, and most of the other capitals aren’t all that far off their peaks.

But an analysis of home values at the suburb level shows that across the country, there are dozens of suburbs with median house prices that are about half that of the capital city in their state.

In the capitals, houses aren’t cheap. A typical house in Sydney, Australia’s priciest capital, costs $1.429 million. Brisbane’s median house value is $951,000, while Melbourne’s is $912,000, the latest PropTrack data shows.

But the good news is a freestanding house on a decent-sized block of land can still be found for half that price, especially for buyers looking outside the capitals or further from the CBDs of the major cities.

Jump ahead to find affordable suburbs in:

• New South Wales
• Victoria
• Queensland
• South Australia
• Western Australia
• Tasmania

These affordable suburbs might appeal to first-home buyers with limited budgets who hadn’t planned on compromising by buying an apartment, or investors searching for an affordable house with decent rental return and perhaps even renovation or development potential.

The data uses PropTrack's automated valuation model (AVM) to determine a suburb's median house value.

The list of half-price suburbs includes those that have a median house value that’s about 50% of the state capital’s median.

PropTrack economic research director Cameron Kusher said the fact that houses in the capitals were expensive meant buyers intent on purchasing a house with a budget well below the citywide median were more likely to have success if they searched on the outskirts of the capitals or in the regions.

He said for owner-occupiers on a tight budget, their ideal search grid would likely come down to the type of work they do.

“If they have a job that doesn't require working in a capital city, or can be fully remote, then these places should be on their radar,” he said.

First-home buyers seeking an affordable house might have more luck searching in suburbs in regional cities rather than the capitals. Picture: Getty

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“If their employment will require them to come to the office regularly then they should look at the commuter belt, within 100-150 kms of the capital city.”

“This would mean places like Geelong and Ballarat, Newcastle or Toowoomba should be on their radar.”

Where to find houses for half the price of a capital city

Somewhat surprisingly, the data shows that NSW has the most options for home buyers looking for a house priced at half the median value of the state capital. 

That’s partly because Sydney prices are so high, meaning there are plenty of suburbs across the state with a median value of about $715,000, or half Sydney’s median.

But it’s also because NSW is Australia’s most populous state, giving buyers a lot of options, especially in the Newcastle, Hunter and Central Coast regions.

Charmvale on the NSW Central Coast has a median house value of $729,000. Picture: realestate.com.au/sold

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Affordable suburbs including Tregear and Warragamba in Sydney’s west, as well as Gorokan and Charmhaven on the central coast allow buyers to purchase at half Sydney’s price while still remaining within commuting distance of the city.

Real estate agent and Brand Property managing director Andre Kubecka said suburbs such as Gorokan offered great value for money for first-home buyers, but also appealed to investors because many properties had the potential to add a granny flat.

"They’re close to infrastructure such as shops and schools, and not far from the railway station at Warnervale," Mr Kubecka said.

"The area does offer a really nice lifestyle near the water, and it's undergoing a bit of change, with younger people coming in, doing up properties and adding value."

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For buyers not tied to purchasing close to Sydney, there were also Newcastle suburbs including Barnsely and Edgeworth, or south coast suburbs such as North Nowra or Batehaven where houses could be purchased for a little more than $700,000.

Queensland buyers also had dozens of suburbs to choose from, assuming they were looking to purchase around the $475,000 mark, which is about half of Brisbane’s median house price.

While buyers will be hard-pressed finding a house for that price in the Brisbane region, looking further afield to Queensland’s regional cities revealed options in Toowoomba, Bundaberg, Gladstone, Mackay, and Townsville.

This house in Kirwan, a suburb of Townsville, sold for $485,000 – a little higher than the suburb median value. Picture: realestate.com.au/sold

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In Victoria, the only suburb of Melbourne that a budget of about $456,000 will afford is Melton, in the city’s outer west.

But it will buy a home in several suburbs of satellite cities including Geelong, Ballarat and Bendigo, as well as regional towns and cities such as Mildura, Swan Hill, Shepparton, Benalla and Bairnsdale.

Real estate agent and Area Specialist Geelong City director and auctioneer Ali Bandari said first-home buyers and investors were increasingly purchasing in Corio and Norlane, attracted by lower prices compared to the rest of Geelong as well as higher rental yields.

“It’s affordable and it’s an hour to Melbourne, 10 minutes to the Geelong CBD, and 10 minutes to the beach,” Mr Bandari said. “A lot of properties can be subdivided, too."

A typical house in Corio in Geelong costs under half a million dollars – much less than a typical Melbourne house. Picture: realestate.com.au/sold

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In contrast to the pricier capitals, there were fewer options for buyers looking for houses priced at half that of typical Perth, Adelaide or Hobart values.

That’s because the median house prices of these cities were already relatively affordable, meaning buyers would need to search for suburbs where typical homes were priced between $350,000 and $400,000 – a big ask even in the more affordable states.

Western Australian buyers could look at York or Kalgoorlie, while South Australian buyers might find luck in Murray Bridge, Kadina or Wallarooo.

In Tasmania, Gagebrook was the only suburb of Hobart with a typical house price about at half the city’s median value, but suburbs of Launceston such as Mayfield, Ravenswood and Waverley offer buying around the $350,000 mark.

Gagebrook in Hobart is Australia's cheapest capital city suburb, with a median value of $371,000. Picture: realestate.com.au/sold

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In the ACT and the NT, there weren't any suburbs priced at half Canberra’s and Darwin’s respective median values. 

Both cities are geographically small, and the territories have very few regional towns and suburbs compared to the other states.

Investor activity surging in the regions

Mr Kusher said the fact that houses were typically much more affordable in the regions didn't necessarily mean capital city buyers with limited budgets needed to move out of the city to buy a home.

“People that can't afford an owner-occupier first home in the capital city an option may be to invest in a regional area and then continue to rent in the city and that opens up purchase opportunities in areas further afield.”

He said investors were becoming increasingly active, particularly targeting areas hotspots where tight rental markets supported price growth.

“With strong rental growth in many regional areas due to the strong demand and lack of supply response, we are seeing investor activity lift, especially in regional areas with more affordable housing prices and diversified economies that support housing demand,” he said.

The NSW suburbs where houses cost half as much as in Sydney

The Victorian suburbs where houses cost half as much as in Melbourne

The Queensland suburbs where houses cost half as much as in Brisbane

The South Australian suburbs where houses cost half as much as in Adelaide

The Western Australian suburbs where houses cost half as much as in Perth

The Tasmanian suburbs where houses cost half as much as in Hobart