As market activity continues to pick up on the back of a third interest rate cut, those in search of a great affordable property have a challenge on their hands.
Property prices hit a new record high in July, PropTrack data shows, with a median house now sitting at $915,000 nationally. However, there are still pockets where quality homes can be found for less than $650,000.
In capital cities, these properties are likely to be units and apartments, those prepared to head further afield can find freestanding homes in enviable locations.
But, as many agents have told us, the best homes don’t last long.
Heritage is a drawcard
In Victoria, there’s a flurry of activity in the western regions, with locations including Ballarat, Bendigo where a median house price sits around $600,000, and smaller towns such as Daylesford and Creswick attracting interest from interstate investors and Melburnians seeking a regional escape.
Agent Danny Clarke of Buxton Bendigo says anything with period features under $650,000 goes within a matter of weeks, with heritage homes of particular interest.
“Most of the period homes are centrally located,” he said. "They’re sound homes, with the need of a bit of renovation.”
Listed with a price guide of $625,000 - $645,000, this Bendigo cottage is liveable but still offers plenty of potential. Picture: realestate.com.au
That’s because similar properties that have been completed sell for $800,000 to $1 million.
Mr Clarke also sees more activity from out-of-state buyers using buyer’s agents to secure these homes.
He noted the benefits the western Victorian regional hubs offer, including schools, employment and transport to Melbourne.
Location matters
In NSW, it’s much harder to find a freestanding home for less than $650,000. You’ll likely need to look to regional locations to score a property on its own title. Think locations including Forrest Hill (median house price of $595,000) and Goulburn ($637,000), along with Cooma, south of the ACT.
In Cooma, you’ll find neatly presented homes such as one currently listed with Belle Property Snowy Mountains.
House prices in Cooma have risen 10% in the past year, though remain affordable. This home at 7 Albert Street is listed for $489,000. Picture: realestate.com.au
In Tasmania, people still seek out homes that are close to cities. Garry Quan of Slate Estate Agents says he’s had increased enquiries in suburbs such as Moonah, a 15-20 minute drive from the city.
These well located suburbs are of interest to first- and second-home buyers along with “mainlanders” looking for a southern gem.
“There’s good sentiment in the air,” he said, pointing out that a combination of government schemes for first-home buyers and reduced interest rates are encouraging buyers to take the plunge.
“People who’ve been on the mainland – they’re raising kids and the market is moving so they don’t want to leave it too late.”
One of his current listings in Moonah is a three-bedroom period brick home with rustic, country-style updates. It’s on a 1075sqm block with an asking price of $645,000+.
He says it’s not just the quality homes, but the change taking place in the suburb that is reducing the days on market for properties of this type. The coffee shops and great restaurants are bringing younger people into this suburb which has traditionally been home to an older demographic.
If you’re hunting for a home under $650,000 and want to go west, there are also homes on generous blocks such as this one in Bellevue, and easy commute from Perth’s CBD, listed with HouseSmart Real Estate.
House prices in Bellevue have risen 12.7% over the 12 months to July, with a median price of $620,000.
Investor targets
Investors are out in force in Townsville according to Harcourts agent Adrian Raiteri, who says buyer behaviour is being led by investment.
"A great deal of properties are transacting off-market," Mr Raiteri said.
Currently, the tropical city has the hottest property market in the country with annual growth of 16.7%.
Townsville's property market has soared over the past year, but houses remain affordable. Picture: Getty
But that doesn’t mean owner-occupiers are locked out. One of Mr Raiteri's current listings is beautifully presented and comes with a pool, though he notes this isn't necessarily a drawcard for all buyers.
"Pools aren’t perceived as better by investors, they don’t want the maintenance. They want a slab on the ground and three to four bedrooms," he said.
This means homes with pools give owner-occupiers a look in.
Like other regional hubs, Townsville is also a popular investment thanks to low vacancy rates and good employment opportunities.
It’s so hot that he says his best properties are under contract “within a week or so”. In fact, investors are so competitive, Mr Raiteri sees first-home buyers struggling to get into freestanding homes.
“They’re shifting their attention to duplexes," he said.
While it’s increasingly difficult to find good homes for less than $650,000 in Adelaide, you can still buy on the city’s fringe, but there are conditions.
Morphett Vale is experiencing unique buyer and seller conditions. Known for its oversized blocks, savvy owners and small developers are subdividing the land because some titles are big enough to put three or four homes on.
Priced below the Morphett Vale median, 7 Sherfield Road sits on a community title. Picture: realestate.com.au
Cain Dover of Ray White says one of his current listings, which has four bedrooms, two bathrooms and two car parks, priced at $600,000 to $650,000 is on a community title, meaning there is a common driveway and some shared insurance costs.
There are options for those who want their own title:
“I just sold a 1970s house on a bigger block to first home buyers,” he said. Again, buyers are moving fast in this area, with many properties selling within seven to 14 days.
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