Housing Industry Association data has found that over the past 6 months, new home sales have declined by 4.5 per cent. Despite property market concerns, housing affordability has increased across certain suburbs that have showed signs of growth.
Affordable property values in outlying suburbs is paving the way for new buyers to enter the property market.
Over the past 12 months across Australia, according to an excerpt from CoreLogic’s July 2019 ‘Top Performing Suburbs Report’, several suburbs with home median values below $500,000 have shown significant property growth.
Below are the top 10 most affordable suburbs showing the highest median value growth.
Smithton in Tasmania received the top honours. With a population of 3,881 Smithton is located on the far north-west of Tasmania and the economy is primarily based around agriculture including dairy, beef, fishing, crop farming, timber plantations and tourism.
Looking at the wider list, it’s hard not to notice that many suburbs aren’t ones that would typically come to mind. What this means for buyers is that some of the most affordable suburbs are not beyond your reach if you’re willing to look outside traditionally popular suburbs.
In June 2019, Corelogic assessed median house prices across the country. Recent trends across have shown there are many promising suburbs throughout Australia showing signs of affordability and property growth across the residential property market.
In New South Wales, the suburb of Werrington is in Sydney’s western suburbs and is approximately a one-hour train ride or 45km drive from the city. The median house price here is $411,884 which is significantly more affordable than a similar property within the city at approximately $1,638,961.
In Victoria, 35km west of Melbourne’s central business district (CBD), buyers can expect a house in Melton to have a median price tag of $373,784 compared with the CBD housing market median of $1,260,788. In 1974 Melton was declared a ‘satellite city’ and in 2019 it’s now the fastest growing area of Melbourne. Melton is also considered a commuter town due to its proximity to the city.
In Queensland, Cashmere, an outer suburb of the Moreton Bay region is located 25km north west of the Brisbane CBD. Housing prices there have a current median value of $634,157 compared to the affluent residential suburb of Paddington with a median house price of $1,014,492.
In Western Australia, travelling approximately 26km outside the city of Perth to Darlington shows a median house price of $540,840 compared with $774,444 in Perth’s city centre. Picturesque Darlington is notably an area popular for picnics, country drives and holiday homes.
Ingle Farm, SA
In South Australia, a house in Ingle Farm will set buyers back approximately $340,239. Ingle Farm is a typically residential suburb located approximately 12km north-east of the Adelaide CBD which has a median house price of $746,954.
In Tasmania, travelling just under 50km outside the city centre to the riverside small scenic township of Franklin, results in median house prices of $458,730 compared with $779,237 in the city. Franklin is considered to have a lot of old-fashioned charm with its historic buildings and has become popular as both a tourist town and for those in larger cities looking for a move to the quaint and scenic countryside.
Just outside Canberra, the median house price in Jerrabomberra, a suburb of Queanbeyan is located approximately 15km outside the city centre is $705,339 compared with $662,847 in Canberra city. This is an interesting result, given the trend is for city centre locations to be more expensive. What this shows is that it’s always worthwhile to keep your options open and look both within the areas you prefer in addition to the outlying suburbs that may (or may not) be more affordable.
Up in the Northern Territory, a property in Pinelands, approximately 14km outside the city centre shows median housing prices of $258,827 compared with $710,553 in Bayview an upper middle-class inner-city suburb of Darwin.
To sum it up…
Overall, the property market is diverse and just because one suburb may seem out of reach, it doesn’t mean the trend will continue or that buyers are excluded from entering the market altogether.
If you’re thinking of moving to a new house or buying your first property, it may be a good time to look outside the box and consider some of the most affordable suburbs you may otherwise have ignored.
As you can see, looking outside city areas could be a good place to start. Initially you may need to lower expectations in terms of size, features and nearby access to services and facilities.
By doing this, you could also potentially save hundreds of thousands of dollars and gain immeasurable benefits for your lifestyle and that just may be worth the sacrifice.