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Property from $174,000: Most affordable suburbs for 2023 revealed

The most affordable suburbs in Australia’s capital cities and regions have been named.

Australian property prices have rebounded strongly this year, but there are still some affordable pockets where would-be buyers can pick up a home from just $174,000.

New PropTrack data has revealed Australia’s most affordable suburbs for 2023 across the capital cities and regional areas.

Rangeway in Western Australia’s outback took the crown as the most affordable suburb in the country with a median home value of $174,000, while Elizabeth North in Adelaide was the most affordable capital city suburb, with a median value of $368,000.

Image of sold sign and Australian houses. Property market.
Property prices have risen this year, but these suburbs could still provide an affordable option for first-home buyers. (Source: AAP)

Do you have a story to share? Contact tamika.seeto@yahooinc.com

PropTrack economist Anne Flaherty said the most affordable suburbs throughout the country tended to be located in relatively remote locations, such as central Queensland, Outback South Australia and Outback Western Australia. But there were still affordable options for those in the capitals.

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“It is good to see that there is a lot of affordability still in those greater capital city areas,” Flaherty told Yahoo Finance.

“Adelaide’s northern suburbs have a lot of affordable housing and, similarly, Perth’s south-west, so there are pockets of affordability in the cities as well.”

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Top 10 most affordable suburbs

These were the 10 most affordable suburbs across the capital cities:

  1. Elizabeth North, SA - $368,000

  2. Moulden, NT - $369,000

  3. Gagebrook, TAS - $373,000

  4. Gray, NT - $384,000

  5. Mandurah, WA - $387,000

  6. Medina, WA - $389,000

  7. Herdsmans Cove, TAS - $396,000

  8. Smithfield Plains, SA - $401,000

  9. Toogoolawah, QLD - $402,000

  10. Koongamia, WA - $403,000

These were the 10 most affordable suburbs across regional areas:

  1. Rangeway, WA - $174,000

  2. Mount Morgan, QLD - $177,000

  3. Blackwater, QLD - $207,000

  4. Whyalla Norrie, SA - $212,000

  5. Port Augusta, SA - $217,000

  6. Whyalla Stuart, SA - $222,000

  7. Cobar, NSW - $229,000

  8. Spalding, WA - $233,000

  9. Ingham, QLD - $234,000

  10. Longreach, QLD - $241,000

Property prices drop 10% in some suburbs

PropTrack also identified the suburbs where property prices had dropped by more than 10 per cent in the past 12 months, despite median prices hitting record highs this year.

The biggest drops were in greater Hobart, with Carlton seeing a 13.3 per cent fall in median value to $594,000. Home values in nearby Dodges Ferry and Sorell also fell by 13 and 12 per cent, respectively.

Flaherty said prices in greater Hobart “massively outperformed” during the pandemic years, with demand well outpacing the supply of properties, making it competitive for buyers and driving up prices.

“Now that has significantly cooled off,” Flaherty said. “So the level of buyer demand that we’re seeing at the moment in Hobart doesn’t match what we were seeing during the pandemic. [There’s also] the fact that interest rates have increased so much and we’ve seen a real correction in property prices across Hobart.”

It’s a similar story for regional areas like Richmond-Tweed in northern New South Wales, which was in hot demand during the pandemic but has now readjusted back downwards.

Top 10 suburbs with the biggest drops

These were the 10 suburbs with the lowest price growth across the capital cities:

  1. Carlton, TAS - $594,000, -13.3%

  2. Dodges Ferry, TAS - $590,000, -13%

  3. Sorell, TAS - $632,000, -12%

  4. Primrose Sands, TAS, $480,000, -11.6%

  5. Kurrajong Heights, NSW - $953,000, -11.3%

  6. Richmond, TAS - $888,000, -10.1%

  7. Rosetta, TAS - $640,000, -10.1%

  8. Moonah, TAS - $592,000, -9.8%

  9. Montrose, TAS - $585,000, -9.6%

  10. West Hobart, TAS - $920,000, -9.5%

These were the 10 suburbs with the lowest price growth across regional areas:

  1. Mullumbimby, NSW - $1,091,000, -11.9%

  2. Ocean Shores, NSW - $1,082,000, -10.1%

  3. Smiths Lake, NSW - $775,000, -9.4%

  4. Ballina, NSW - $832,000, -8.9%

  5. West Ballina, NSW - $870,000, -8.8%

  6. Point Lonsdale, VIC - $1,294,000, -8.5%

  7. Lismore, NSW - $465,000, -7.8%

  8. Coomba Park, NSW - $546,000, -7.7%

  9. Cumbalum, NSW - $1,080,000, -7.6%

  10. Ocean Grove, VIC - $1,006,000, -7.5%

Flaherty said she expected property prices would remain “very resilient” in 2024 as we entered into a more stable interest rate environment.

“Add to that Australia’s population is forecast to continue growing very strongly and the speed at which new housing supply is being developed has slowed down. So, future housing supply is not predicted to keep up with population growth over the next couple of years,” Flaherty said.

“Regardless of broader economic conditions, that is going to keep demand for real estate strong and support property prices.”

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