Amidst rising interest rates and heightened market activity, buyers are venturing beyond major cities to purchase homes in Australia’s most affordable suburbs, PropTrack reported.
Last year, these regions saw a surge in demand, causing a notable increase in property values, particularly in areas traditionally known for lower costs.
In 2023, Western Australia’s Rangeway topped the list of the cheapest suburbs, witnessing a remarkable 48% increase in median house prices to $267,000, PropTrack reported.
Similarly, the least expensive suburb for units in 2023, Orelia in Perth, experienced a 43% rise in value, offering substantial equity gains to investors.
With significant returns on investment demonstrated last year, affordable suburbs have attracted a flurry of investor activity.
Angus Moore (pictured above), a senior economist at PropTrack, predicts that affordability will remain a crucial factor in 2025, suggesting a continued trend of robust demand in economically accessible regions.
Despite the uptick in prices, many suburbs still offer homes well below the national median value of $795,000.
Charleville, Queensland, emerged as the most budget-friendly suburb, with median house values at $170,000. However, some properties in this locale sold for as low as $60,000.
The most affordable suburbs are not confined to remote areas; they also include regional cities.
South Gladstone in Queensland, for example, recorded the lowest median price for units at $240,000.
Meanwhile, mining towns continue to dominate the list of budget-friendly house markets due to their remoteness and lower land costs.
For those seeking affordability within capital cities, options exist but may require looking beyond the mainland.
Russell Island, part of greater Brisbane, offers median house values at $381,000, presenting a cost-effective alternative for retirees and those willing to commute, PropTrack reported.
While some suburbs like Orelia have seen prices soar by 43%, they remain within reach for many.
Affordable units in Perth and budget-friendly options in Melbourne and Adelaide suggest that, despite rising prices, there are still numerous opportunities for home buyers to enter the market without stretching their finances to the limit.
