As home prices hit record highs across Australia, with the median price reaching $794,000 in February, a surge of 3.9% year-on-year, home buyers, particularly first-timers, are expanding their searches.
Escalating costs of living and higher interest rates have not matched wage increases, compelling many to look beyond their ideal neighborhoods toward more economically viable options.
In Sydney, where the median home price soared to $1.425 million, affordable suburbs like Fairfield have seen remarkable growth, with house prices jumping 22.9% to $1.155m.
Similarly, Melbourne’s Cranbourne South and Brisbane’s Tivoli witnessed substantial home price increases of 10.5% and 36.6%, respectively, appealing to buyers seeking value for money.
Further afield, Adelaide and Perth have shown significant gains in less popular suburbs.
For instance, Elizabeth South in Adelaide saw a 32.6% increase in median house prices, while Perth’s Medina enjoyed a 47.3% rise, indicating robust interest in these emerging hotspots.
Despite a general trend towards higher prices, each city presents unique opportunities.
In Melbourne, West Footscray saw a 24.4% increase in median unit prices, while Brisbane's Dakabin units skyrocketed by 51.7%. These figures reflect a diverse market where strategic buyers can still find great value.
Even in quieter markets like Hobart, pockets of growth are evident.
Dodges Ferry experienced a 13.2% increase in median home prices, suggesting potential in less conspicuous areas.
As affordability remains a key concern, with the median dwelling value-to-income ratio climbing to 8 from a 20-year average of 6.7, the suburbs highlighted offer promising opportunities for buyers willing to look beyond traditional hotspots.
With strategic investments, these areas could provide substantial returns, balancing affordability with potential for appreciation, PropTrack said.
Read the PropTrack report for more insights on where to find affordable suburbs with fast-growing home prices.
