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Surging rents have encouraged more people to get out of the rental market by buying a home, and in many suburbs, repayments for a typical property will cost less than Australia’s median rent.
PropTrack analysis shows that affordable property prices in hundreds of Australian suburbs allow buyers to get into the market and service their mortgage for less than a typical renter pays each week.
Australia’s median rent was $550 over the past year, according to PropTrack data. In the capitals, the median rent was $575, while in the regions it was $490.
Over the past year, rents have surged more in the capitals than in the regions, jumping 20% in Perth, about 18% in Melbourne and almost 17% in Sydney.
PropTrack senior economist Paul Ryan said the big jump in rents had prompted many tenants to seek a home of their own.
“Despite high prices and higher interest rates there is this desire from lots of people to escape the rental market and move into purchasing,” he said.
Assuming a buyer has a 20% deposit and a 6.24% interest rate on their loan — the average rate for new loans, according to the RBA — a property would need to be priced under $447,000 for repayments to be less than $550 per week.
According to PropTrack data, there are 340 suburbs across Australia where median house prices are below $447,000, and 261 suburbs with median unit prices in that range.
Where to buy a property with mortgage repayments under $550 per week
Most of the suburbs where a typical home costs less than that are outside the capitals, where cheaper property prices mean buyers get more bang for their buck.
“A lot of these places are in regional Australia, which shows the continued affordability benefits of moving to the regions,” Mr Ryan said.
![Facade and front yard of 417 Kotthoff Street Lavington NSW](data:image/svg+xml,%3Csvg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 800 450"%3E%3C/svg%3E)
Regional suburbs were more likely to have median property prices below $447,000, which would make mortgage repayments cheaper than the national median rent. Picture: realestate.com.au
The smaller capitals, where property prices are cheaper, had relatively high proportions of suburbs where servicing a mortgage cost less than Australia’s typical rent.
This relative affordability has been a factor driving increased buyer interest in the smaller capitals and pushing up prices in affordable areas.
“It’s pretty clear that housing affordability is one of the things that’s driving people to move away from the larger cities,” Mr Ryan said.
In the regions, there were far more suburbs where a sub-$550 budget affords a house than in the capitals, owing to higher house prices in the major cities.
There were 37 capital city suburbs where a typical house would cost less than $550 in weekly repayments, compared to 120 city suburbs where buyers could purchase a unit with the same budget.
The data shows that buyers in Sydney and Melbourne with a $550 per week budget would need to limit their search to units, given there were no suburbs in these cities where that budget affords a median-priced house.
Mr Ryan said both buyers and renters were increasingly turning towards units, given housing costs had risen so much.
“Affordability is definitely pushing people to search for smaller dwellings because prices have increased,” he said. “Units are smaller, but tend to be more centrally located.”
New South Wales
There are no suburbs in Sydney where a $550 per week budget affords a house, but plenty of suburbs where buyers can purchase a unit, mostly in Sydney’s southwest.
Lakemba was the closest suburb to the CBD in that budget, with a median unit price of about $397,000, while nearby Wiley Park and Punchbowl were almost as affordable.
Local real estate agent and Knapton & Co director Luke Knapton said that budget would afford a renovated two-bedroom unit or a larger, unrenovated apartment.
“For $400,000 you’ll get something with a car space, and with $420,000 and above you’ll get a garage,” he said.
Lakemba’s affordability was surprising, Mr Knapton said, given it’s less than 14km from the Sydney CBD and properties had high rental returns.
“These units will generally rent for $500 a week, so not only are they affordable for first home buyers, but they’re very appealing to investors too.”
Further out, buyers can find units for under $447,000 in a string of suburbs between Liverpool and Parramatta, including Warwick Farm, Cabramatta, Fairfield, Guildford and Harris Park.
You wouldn’t find a backyard like this in the city for less than $500. This North Albury house on a 702sqm block sold for $389,000 in December, which works out to be less than $480 per week in repayments. Picture: realestate.com.au/sold
In regional NSW, the same budget affords a house in 55 suburbs, mostly in the Central West, New England and Riverina regions, including some suburbs of regional cities like Wagga Wagga and Albury.
Closer to the coast, West Kempsey and Casino offer houses for less than $447,000, while unit buyers will find properties within budget in Taree and Raymond Terrace.
Victoria
While a $550 a week budget won’t afford a house in Melbourne, buyers can purchase a unit with that kind of money in 18 Melbourne suburbs, mostly in the city’s west and north.
Inner suburbs like Carlton, Flemington, Travancore and West Footscray fall into that budget, as do suburbs a little further out like Broadmeadows, Bundoora, Notting Hill and Dandenong. Outer suburbs including Melton, Werribee and Craigieburn also offer units of similar value.
Nelson Alexander Flemington director Ryan Currie said buyers valued Flemington’s community vibe, cafe culture and connectivity, with three train stations within reach, as well as its affordable properties.
“We’ve seen a real increase in demand for those older style apartments,” he said. “The attraction for first home buyers is it’s still quite affordable, and with an older block you don’t have big owners corporation fees.”
This inner city pad in Carlton sold for $390,000 in December. Assuming a 20% deposit and average interest rates, loan repayments would be about $480 per week. Picture: realestate.com.au/sold
In the regions, buyers have many more options, including in major regional towns like Shepparton and Mildura where median house prices are under $447,000.
On the coast, units in Warrnambool and houses in Portland come in under budget, as do units in Herne Hill, a suburb of Geelong.
Queensland
In Brisbane, buyers will need to search in the city’s west in suburbs like North Booval or East Ipswich to find a house with repayments under $550 per week, or else take the ferry to Russell Island or Macleay Island to purchase a house with cheaper repayments than the national median rent.
Unit buyers will have more luck, especially in Brisbane’s south in suburbs like Acacia Ridge, Slacks Creek, Shailer Park and Loganlea, as well as in the Ipswich region. Alexandra Hills in the east and Strathpine in the north also have affordably-priced apartments for sale.
In regional Queensland, buyers have a lot more options, both on the coast and inland.
Close to Brisbane, suburbs in Toowoomba’s north such as Wilsonton Heights, Rockville and Harlaxton have affordable median house prices, as do Warwick, Stanthorpe, Kingaroy and Maryborough.
Real estate agent James O’Donohue of RE/MAX Success Toowoomba said the compact size of houses in many of Toowoomba’s northern suburbs had kept prices affordable.
“A lot of those homes were built back in the 80s, and most of them are three-bedroom, one-bathroom brick houses on 600 to 800 square metres,” he said.
Most people purchasing homes in the area were local first-home buyers, Mr O’Donohue said, while many were investors from the capitals hoping to take advantage of uplift resulting from the Toowoomba’s new $1.3 billion hospital slated to open in 2027.
This three-bedroom house on a 1012sqm block in Oonoonba, a suburb of Townsville, sold for $433,000 in December. It would cost a typical borrower about $533 per week in repayments. Picture: realestate.com.au/sold
Further north, plenty of suburbs of Bundaberg, Gladstone, Rockhampton and Mackay have both houses and units that can be afforded for less than $550.
A median-priced house costs less than $447,000 in almost every Townsville suburb, while most Cairns suburbs have median unit prices less than $400,000, pushing repayments below the $500 mark.
South Australia
All the Adelaide suburbs with a median house price below $447,000 are in the city’s north.
Suburbs like Davoren Park, Smithfield Plains and Elizabeth Downs have attracted budget-conscious buyers from far and wide, but despite strong demand pushing up prices, houses are still affordable.
Edge Realty principal Mike Lao said Adelaide’s northern suburbs had always been affordable, but increased interest from both investors and first-home buyers had accelerated price growth.
“A lot of new Australians are coming to the area,” he said. “It’s cheaper to buy than to rent, and obviously it’s the Australian dream to own your place.”
“You can still buy houses under $450,00, and you’ll never have the opportunity again.”
Home values have surged more than 20% in the past year in Davoren Park. This four-bedroom brick house sold last year for $448,000. Picture: realestate.com.au/sold
For units, Kurralta Park is the closest suburb to the city where weekly repayments would be below $550. Units in the inner suburbs of Walkerville, Brooklyn Park and Plympton also come under budget.
Outside of Adelaide, buyers can look to Port Lincoln, Port Augusta, Whyalla, Wallaroo and Port Pirie for affordable houses on the coast. Even Kingscote on Kangaroo Island has a median of $420,000, making mortgage repayments about $517 per week.
Towns along the Murray River such as Loxton, Renmark, Berri and Waikerie all have median house prices below $350,000, putting weekly repayments around the $400 mark.
Western Australia
Perth’s affordable property prices mean buyers have many more options for a home with repayments under $550 per week than in the other capitals.
For houses, buyers can look in Camillo, Armadale and Brookdale in the city’s southeast, as well as Orelia, Hillman and Mandurah in the southwest and Midland and Stratton in the northeast.
Many of Perth’s inner suburbs have median unit prices below $447,000, including Northbridge and Highgate near the CBD, Victoria Park in the south and Wembley in the west.
Even in Mosman Park, where houses have multi-million dollar price tags, buyers can purchase a unit and still pay less than the national median rent in repayments.
Outside of Perth, buyers on a budget will find options in Geraldton, where median house prices in most suburbs come in under budget, as well as Bunbury, where suburbs like Usher, Withers and Carey Park are affordable,
Tasmania
There were only four Hobart suburbs where, based on median prices, repayments would be below $550 per week: Bridgewater and Risdon Vale for houses and Glenorchy and Claremont for units.
In regional Tasmania, there are a few more options, mostly in the state’s north, including Somerset and East Devonport, as well as suburbs of Launceston such as Mowbray, Riverside and Ravenswood.
The median house price in Somerset on Tasmania’s north coast is $425,000. This three-bedroom house with a view of the ocean sold for $449,000 in January. Picture: realestate.com.au/sold
Bargain hunters searching for the absolute cheapest properties can look in Rosebery and Queenstown in the west, where median prices below $200,000 mean a mortgage would cost buyers about $230 per week.
Northern Territory
Given Darwin is Australia’s least expensive capital, there are plenty of options for buyers looking for affordable properties.
This $340,000 two-bedroom apartment in Larrakeyah features water views and would only cost a typical borrower about $418 per week in mortgage repayments. Picture: realestate.com.au/sold
Darwin City, Nightcliff, Larrakeyah and Rapid Creek have median unit prices between $376,000 and $430,000, putting mortgage repayments comfortably below the national median rent.
For houses, buyers can consider Moulden, Gray, Woodroffe and Driver.
Australian Capital Territory
While there weren’t any suburbs in the ACT with a median house or unit price below $447,000, the figure that would make mortgage repayments cheaper than the national rent, that doesn’t mean ACT buyers are out of options.
While it’s technically in NSW, Crestwood is one of the few suburbs available to Canberra buyers where repayments on a typical unit cost less than $550 per week. Picture: realestate.com.au/sold
Just across the border in NSW, Crestwood, Queanbeyan, and Queanbeyan East had affordable median unit prices, creating opportunities for buyers who are priced out of Canberra but still want to live or work in the area.
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