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Aussie suburbs where it’s cheaper to buy than rent

Skyrocketing rents have offset higher property costs in many parts of Australia.

It’s now cheaper to buy than rent more than a third of homes across Australia, despite the Reserve Bank’s rapid interest rate hikes and high property prices.

Queensland, Tasmania and Western Australia have the highest proportion of units and houses that are cheaper for buyers, new PropTrack data found. In Western Australia, a staggering 78 per cent of homes are cheaper to buy than rent.

PropTrack economist Paul Ryan said this reflected recent unit development, with new unit prices low compared to rents following record rent growth.

Property for sale. Buying a home.
More than a third of Aussie homes are now cheaper to buy than rent, new property data has found. (Source: AAP)

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“Favourable buying conditions remain despite a record pace of interest rate increases, and home prices increasing 36 per cent since the pandemic. This shows that there are still opportunities for buyers across the housing market,” Ryan said.

“A record pace of rent growth – with advertised rents up 14.6 per cent over the past year – has offset higher buying costs in many regions.”

Units provided the most opportunity, with 55 per cent of these properties cheaper to buy than rent, compared to 29 per cent for houses.

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Victoria had the lowest proportion of homes that were cheaper to buy than rent at 16.6 per cent, followed by NSW at 24.3 per cent. But this could vary significantly depending on the suburb.

The research is based on the cost of owning or renting each home for the next 10 years, including mortgage costs and other related costs, including stamp duty, rates and maintenance.

City-by-city breakdown

Here’s a city-by-city breakdown of the locations with the highest share of homes that are cheaper to buy than rent.

Sydney

  1. Botany - 71 per cent

  2. Auburn - 63 per cent

  3. Parramatta - 55 per cent

Melbourne

  1. Melbourne City - 83 per cent

  2. Stonnington West - 48 per cent

  3. Port Phillip - 47 per cent

Brisbane

  1. Brisbane inner - 80 per cent

  2. Beenleigh - 78 per cent

  3. Brisbane inner north - 62 per cent

Adelaide

  1. Playford - 84 per cent

  2. Gawler Two Wells - 65 per cent

  3. Salisbury - 65 per cent

Perth

  1. Kwinana - 95 per cent

  2. Gosnells - 95 per cent

  3. Swan - 93 per cent

Hobart

  1. Hobart North West - 70 per cent

  2. Brighton - 68 per cent

  3. Sorell Dodges Ferry - 38 per cent

Looking to 2024, Ryan noted that higher interest rates would challenge housing affordability for many Aussies.

“This may slow price growth and rebalance buying conditions across the market,” he said.

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