Despite soaring property prices, three and four-bedroom homes remain relatively affordable in suburbs eight to 25 kilometres from city centres, according to new data from PropTrack’s August Home Price Index.
“Even with rising prices, there are still opportunities for families to find more affordable housing in middle-ring suburbs,” said Megan Lieu (pictured above), PropTrack economic analyst.
Prices in capital cities have risen faster than in regional areas, with houses in urban centres costing 6.8% more on average compared to a 5.4% rise in the regions over the past year.
“This reflects the strong demand from buyers for houses in metropolitan areas,” Lieu said.
The increased competition is making it harder for buyers to secure affordable homes near CBDs.
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In Sydney, three-bedroom houses in Smithfield, Fairfield, and Granville are among the most affordable, with median prices between $985,000 and $1,058,000.
Melbourne’s most competitively priced middle-ring suburbs include Dallas, Coolaroo, and Deanside.
In Brisbane, Goodna, Collingwood Park, and Woodridge offer some of the cheapest three-bedroom houses, with prices well below the city’s median of $850,000, PropTrack data showed.
Sydney’s Smithfield, Guildford, and Yagoona are among the cheapest suburbs for four-bedroom houses within 12-25 kilometres of the CBD, with prices ranging from $1.1 million to $1.2 million.
“These middle-ring suburbs still provide good value compared to inner-city areas,” Lieu said.
Melbourne’s Truganina, Deanside, and Hoppers Crossing lead in affordability, with prices around $680,000 to $691,000. For four-bedroom homes near Brisbane, Goodna, Boronia Heights, and Collingwood Park are the top choices.
With interest rates stable and forecast to decline early next year, Lieu expects buyer confidence to strengthen, especially as the busy spring season approaches.
“We anticipate that prices will continue to rise in response to this heightened level of demand,” the PropTrack economic analyst said, highlighting the ongoing competition for affordable homes close to city centres.
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