Australia’s property market downturn is starting to slow, but also spread – meaning areas previously untouched by the slide are now becoming increasingly accessible for first home buyers.
And at the same time, areas previously tainted by economic downturns like mining regions are starting to show signs of improvement.
It means now could be a perfect time to jump in at the affordable end of the market, analysts at CoreLogic and Aussie Home Loans have said in the new report Australia’s most affordable suburbs.
But, they warned, the cheapest suburbs are usually cheap for a reason.
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“Often they are far removed from major population and service centres, jobs can be scarce, economic conditions are often volatile and land is generally abundant. The opposite can be said for the most expensive markets that are typically highly desirable, strategically located with little opportunity for new supply.
“Most buyers will be looking for the middle ground: affordable housing options that are well located with regards to transport options, work opportunities, and essential amenities such as shopping, schools and healthcare.”
With that in mind, the researchers also highlighted the most affordable suburbs within 20 kilometres of each city’s centre.
Here are the 20 cheapest suburbs to buy a house
“The suburbs featured in the national Top 20 have all suffered falls in values of up to 66 per cent over the last 10 years and are located in regional areas,” CEO of Aussie, James Symond noted.
“These areas are highlighted by their distance from capital cities and have been hardest hit by the end of the mining boom and difficult agricultural conditions, such as WA’s Mount Magnet, Laverton, Meekatharra, Morawa, Dundas, Leonora and Coolgardie.”
And these are the top 20 suburbs to buy a unit
The downturn does have a bright side in the opportunity it now affords first home buyers to get into the property market, with interest rates remaining at historic lows and government grants schemes still in place in most states,” Symond added.
I don’t want to live in regional Australia
The researchers also identified the suburbs with the lowest median values within 20 kilometres of each city’s centre.
Sydney: Houses in Granville (median price of $647,781), Wiley Park ($649,177) and Chester Hill ($691,938) have the lowest median values, while units in Lakemba ($391,924), Wiley Park ($414,066) and Regents Park ($431,066) are the cheapest for units.
Melbourne: First home buyers looking to purchase a house close to Melbourne should consider Coolaroo ($453,602), Campbellfield ($476,636) and Meadow Heights ($477,952). And if they’re looking to buy a unit, Albion ($320,234), Carlton ($329,228) and Notting Hill ($332,055).
Brisbane: Woodridge ($274,352), Gailes ($293,572) and Ellen Grove ($319,053) are the cheapest places to buy a house close to the city, while Woodridge ($196,471), Forest Lake ($251,531) and Richlands ($278,094) are the cheapest for units.
Adelaide: Buying in Adelaide? Wingfield ($290,237), Salisbury Downs ($292,169) and Paralowie ($292,592) are the cheapest places to buy a house. If buyers prefer a unit, Salisbury ($187,819), Salisbury East ($216,624) and Para Hills West ($239,574) could be good places to start.
Perth: Gosnells ($282,730), Maddington ($295,003) and Girrawheen ($95,625) have the lowest median values for houses, while Glendalough ($227,835), Gosnells ($229,911) and Girrawheen ($235,795) are best placed for units.
Hobart: Those hoping to purchase a house in Tasmania should consider Gagebrook ($217,278), Herdsmans Cove ($218,560) and Bridgewater ($242,023), while those looking for a unit should also consider Bridgewater ($227,020), Old Beach ($253,415) and Claremont ($258,664).
Darwin: Houses in Moulden ($303,522), Zuccoli ($337,274) and Gray ($339,873) are the cheapest, with units in Bakewell ($230,317), Driver ($230,755) and Marrara ($242,198) also offering cheap entry points.
Canberra: Taylor ($364,270), Belconnen ($403,288) and Philip ($447,017) have the lowest median values among suburbs less than 20km from the city centre. Units in Chifley ($327,506), Philip ($330,376) and Lyons ($337,934) have the lowest median values.
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