️ Highlights:
1. Home prices in Australia have risen by 3.8% since September 2022, driven by capital cities where prices have increased by 4.8%.
2. Interest rate hikes led to price falls in 2022, but the recent slowdown in rate rises has improved buyer sentiment.
3. Demand from buyers is strong, and the rebound in migration, both interstate and overseas, is contributing to heightened demand.
4. Sydney and Melbourne have seen an increase in properties coming to market, but the growth in demand is outpacing supply.
5. While prices continue to grow overall, there are still some inner-ring suburbs with relatively affordable homes, particularly in Perth and Brisbane.
Recent data from PropTrack indicates that despite the overall rise in national home prices by 3.8% since September 2022, there remain suburbs within close proximity to city centers where home prices are relatively modest. This report delves into the inner-ring suburbs, defined as those within the closest third to their respective CBD, that offer the lowest median sale prices for houses and units, providing valuable insights for prospective homebuyers seeking affordability near urban amenities.
Market Analysis
The analysis reveals that certain suburbs, particularly in Greater Perth, offer significant value with median sale prices for houses well below the capital city median. For instance, Westminster and Nollamara are highlighted as the most affordable, with median house prices at $450,000 and $458,000 respectively, nearly 25% cheaper than the median for Perth. Similarly, for units, Bayswater and Glendalough stand out with median prices approximately 30% less than the Perth median.
Affordability in Context
The affordability of these suburbs is particularly notable given their proximity to the CBD, which typically commands a premium. The report underscores the disparities in housing affordability across different regions and the opportunities that still exist for buyers to enter the market at a lower price point, despite overall market trends.
This comprehensive analysis of the cheapest suburbs to buy a home close to the CBD provides a snapshot of the current housing market, highlighting areas where affordability is still accessible. For those interested in exploring these opportunities, the full report offers a detailed breakdown of median sale prices and comparisons with respective capital city medians.