COMMENT BY JOHN McGRATH, founder of McGrath estate agents
Affordability is a key challenge for many buyers today, due to ongoing price rises in most markets and higher interest rates making home loans difficult to get and more expensive to service.
We can see from the property data that buyers are gravitating to more affordable homes now, with the most price growth occurring in the cheaper price brackets of most markets these days.
At a citywide level, the cities experiencing the most price growth over the past year have been the historically more affordable mid-sized capitals of Brisbane, Perth and Adelaide.
Part of the reason for this is Australians’ increased willingness to move or invest interstate following the pandemic.
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Hobart still has a range of inner suburbs where prices are under $850,000.
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The Covid era prompted many people to reassess their lives. Some took the opportunity to work remotely on a permanent basis, which opened up the prospect of moving wherever they wanted – typically more affordable lifestyle areas on the coast.
Strong jobs growth in states like Queensland and Western Australia has also encouraged other workers to relocate interstate and take advantage of more affordable housing.
Investors are also broadening their search after getting used to video inspections and electronic conveyancing available during the pandemic. Investors are more confident to buy sight unseen, and as a result, they are prioritising markets offering affordability, better yields and superior capital growth prospects over the previous default choice of buying close to home in an area that they already know.
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Adelaide prices have surged but there are still pockets of affordability. Picture Simon Cross
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With this in mind, it’s interesting to look at which suburbs across the East Coast are offering the best affordability for buyers today.
Proptrack has analysed recent sales data to determine the cheapest suburbs for family homes, by median value, in the inner and middle rings of each East Coast capital city and Adelaide.
Here are their findings.
CHEAPEST SUBURBS FOR FAMILY HOMES
MELBOURNE
In Melbourne’s inner ring, within 11km of the CBD, three bedroom houses are cheapest in Braybrook (median price $695,000), Heidelberg West ($760,000) and Maidstone ($833,000). Four bedroom houses are cheapest in Altona North ($1,028,000), Avondale Heights ($1,196,000) and Pascoe Vale ($1,305,000).
Pascoe Vale houses offer good value.
In the middle ring, within 11-24km of the city, three bedroom houses are cheapest in Dallas ($528,000), Coolaroo ($540,000) and Deanside ($565,000). Four bedroom houses are cheapest in Truganina ($680,000), Deanside ($690,000) and Hoppers Crossing ($691,000).
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BRISBANE
In Brisbane’s inner ring, within 10km of the CBD, three bedroom houses are cheapest in Keperra ($885,000), Chermside West ($901,000) and Chermside ($925,000). Buyers looking for four bedroom houses will find the most value in Everton Park ($1,060,000), Chermside West ($1,103,000) and Mitchelton ($1,195,000).
Chermside houses are some of the cheapest within inner Brisbane.
In the middle ring, within 10-24km of the city, three bedroom houses are most affordable in Goodna ($506,000), Collingwood Park ($581,000) and Woodridge ($588,000). For four bedroom houses, the best-value suburbs are Goodna ($602,000), Boronia Heights ($650,000) and Collingwood Park ($673,000).
HOBART
In Hobart’s inner ring, within 5km of the CBD, three bedroom houses are cheapest in Moonah ($610,000), Lindisfarne ($680,000) and Lenah Valley ($705,000).
In the middle ring, within 5-12km of the city, three bedroom houses are most affordable in Rokeby ($530,000), Glenorchy ($555,000) and Berriedale ($558,000). Buyers seeking four bedroom houses will find the most value in Howrah ($849,000) and Kingston ($863,000).
SYDNEY
In Sydney’s inner ring, within 12km of the CBD, three bedroom houses are cheapest in Campsie (median price $1,643,000), Croydon Park ($1,795,000) and Mascot ($1,881,000). For four bedroom houses, the best value is in Earlwood ($2,150,000), Forestville ($2,210,000) and Ryde ($2,280,000).
Granville remains one of Sydney’s most affordable areas.
In the middle ring of Sydney, within 12-25km of the city, three bedroom houses are most affordable in Smithfield ($985,000), Fairfield ($1,035,000) and Granville ($1,058,000). Four bedroom houses are cheapest in Smithfield ($1,088,000), Guildford ($1,165,000) and Yagoona ($1,200,000).
ADELAIDE
Some of Adelaide’s cheapest inner ring suburbs included Kilburn (median house price $796,000), Lightsview ($744,500) and Ascot Park ($825,000).
The cheapest suburbs to buy a house overall were Gawler West ($469,000), Elizabeth North ($482,000) and Davoren Park $490,000.
While affordability is very important, lifestyle factors should always play a major role in your decision of where to buy your next home or investment.
Suburbs with great amenities such as cafes, shops, parks and easy CBD access will provide a more enjoyable lifestyle for your family and will be more appealing to renters if you’re buying to invest.
* John McGrath is the founder, Managing Director and Chief Executive Officer of McGrath Estate Agents
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