Cheapest capital city suburbs where buyers can still snag a bargain

The spring selling season is booming, with 3,601 homes scheduled for auction this week according to PropTrack, the highest number in over 18 months.

And the latest PropTrack Home Price Index shows national prices have recovered from 2022’s falls entirely after climbing 4.31% so far this year.

But while rising property prices favour existing homeowners, for those trying to purchase a home for the first time it means higher deposits when elevated interest rates are already squeezing borrowing capacities.

PropTrack senior economist Eleanor Creagh said entering the market has become less accessible for many first-time buyers, particularly in the capital cities where budgets are already stretched.

"Affordability has deteriorated markedly and is likely to remain stretched, with home prices expected to keep rising and interest rates set to remain at this level into 2024," she explained.

Affordability has deteriorated, but buyers can still find relative bargains in some suburbs. Picture: Getty

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With many buyers chasing affordability, some of the cheaper suburbs are seeing some of the sharpest price rises, hurting first-time buyers further.

However, new data shows there are still affordable pockets if they're willing to be flexible. Here are the suburbs offering the cheapest homes and units right now.

Sydney

Australia's harbour city remains its most expensive property market, with a median price of $1.06 million across Greater Sydney.

"House prices are up 7.93%, while units are up 5.24% year to date," Ms Creagh said.

With no suburb offering a median house price below $500,000, the cheapest way to claim a slice of Sydney is by looking far west.

Cheapest Sydney suburbs for houses

PropTrack data reveals Tregear, Blackett and Willmott, around 35km west of the CBD, provide the most affordable houses in Sydney, with medians of $620,000, $630,000 and $635,000 respectively.

Wiltar Jajaw at Ray White Mt Druitt said this corner of western Sydney is abuzz with first-time buyers and investors seeking a deal.

"As soon as a property is under offer, we're getting three of four buyers asking us to let them know if it falls through.

On the market: This tenanted home in Sydney's most affordable house suburb, Tregear, is listed for $589,000 - $619,000. Picture: realestate.com.au/buy

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"Our market is about 70% investors, mainly from western Sydney. There are good-sized blocks so most are adding a granny flat to gain a secondary rental income."

Cheapest Sydney suburbs for units

For units, Lakemba, 12km southwest of the CBD, is the most affordable option in Sydney, with a median of $385,000, followed by the southwest suburbs of Wiley Park ($395,000), Canley Vale ($400,000) and Cabramatta ($410,000).

Melbourne

Once a country town, Melton and Melton South on Melbourne's western fringe, around 50km from the CBD, offer the cheapest houses in the city, with medians of $467,500 and $491,000 respectively – compared to the Melbourne median property price of $810,000.

These suburbs also offer some of the cheapest units, with medians of $365,000 and $370,000 respectively.

Set on a corner block with subdivision potential, this Melton home has an auction guide of $419,000 to $459,000. Picture: realestate.com.au/buy

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Shane Spiteri at YPA Estate Agent Melton said he's run off his feet.

"Due to interest rates going through the roof, it's affordable here at the end of the day. We're seeing everyone here – first homebuyers, downsizers and investors."

Cheapest Melbourne suburbs for houses

For those not keen to venture so far out, Dallas, 17km north of the CBD, offers a median house price of $498,500 while Kurunjang in the west ($523,000) and Broadmeadows in the north ($544,000) are also affordable options.

Cheapest Melbourne suburbs for units

Unit buyers may also want to consider Albion in the city's west, which has a median unit price of $278,000, the cheapest in the city, while the inner-city suburbs of Travancore and Flemington have medians of $340,000 and $370,000.

Brisbane

Brisbane's market is on the move, with house prices up 6.43% over the year to date and apartment prices up 6.66%. The median property price is now $762,000.

Those looking to escape the market heat could consider Russell Island in Moreton Bay. Not only is the island surrounded by a marine park, it also offers Brisbane's cheapest median house price of $337,000.

Nearby Macleay Island, which boasts more waterfront homes, offers a median house price of $420,000.

Cheapest Brisbane suburbs for houses

Agent Kat Gawlik at T Barclay Real Estate Bay Islands, said the island is welcoming lots of new buyers seeking affordability and lifestyle, but she said the location isn't for everyone.

"It's a lovely and peaceful island but there are some inconveniences; you have to be a certain type of person to be happy with the quiet."

What $372,000 will get you on Brisbane's Russell Island. Picture: realestate.com.au/buy

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Russell Island and Macleay are just over an hour from Brisbane CBD, with plenty of people making the commute, Ms Gawlik added.

The only other parts of the city that offer median house prices under $400,000 are Laidley and Toogoolawah in Ipswich, around an hour west of the CBD.

Cheapest Brisbane suburbs for units

Unit seekers priced out of central Brisbane should consider the suburbs around Logan in the city's south.

The suburbs of Woodridge, Logan Central, Waterford West and Beenleigh all offer unit medians under $300,000.

Perth

Perth has recorded an impressive 9.24% hike in prices since September 2022 to a current median of $597,000, driven largely by lack of stock.

Located just 5km from the CBD and within walking distance to pubs, restaurants and shops, this two-bedroom unit in Wembley suits investors or first-home buyers, priced from $300,000. Picture: realestate.com.au/buy

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Buyers feeling locked out should look to the city's south. Medina has a median house price of $337,500, Armadale $350,000, Calista $353,000 and Camillo $365,000.

Cheapest Perth suburbs for houses

Units can even be found for under $200,000 in the southern suburb of Orelia, where the median price is $195,000, while those in Shoalwater, further south, have a median of $230,000 and those in Bayswater in the city's northwest $271,000.

Cheapest Perth suburbs for units

For those wanting to be a little more central, Glendalough and Wembley have median unit prices of $282,000 and $285,000 respectively.

Adelaide

Like Perth, Adelaide completely bucked the price falling trend of 2022. And since September 2022 it's seen a jump in property prices of 8.31% to a current median of $689,000.

Adelaide's north has traditionally offered the city's most affordable housing.

Neat and tidy, this two-bedroom semi in Elizabeth North has just hit the market for $279,000 - $305,000. Picture: realestate.com.au/buy

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Elizabeth South currently has a median house price of $296,000, followed by Elizabeth North ($322,500), Davoren Park ($336,050), Elizabeth Downs ($370,500) and Elizabeth Park ($381,000).

Cheapest Adelaide suburbs for houses

The nearby suburbs of Salisbury East and Salisbury also provide the city's cheapest units, at $292,500 and $325,000 respectively.

Cheapest Adelaide suburbs for units

Corey Voss at LJ Hooker Craigmore, Elizabeth and Salisbury said properties in the city's northern suburbs were being snapped up "straight away", mainly by investors seeking an affordable asset.

"There's a lot of competition. I don't think it will slow down; if anything it's becoming harder to find stock so prices are holding up very well."

Hobart

Hobart's Eastern Shore provides the most affordable houses in the city, with Bridgewater and Risdon Vale boasting median house prices of $450,000 and $470,000 respectively – compared to a city median property price of $677,000.

Cheapest Hobart suburbs for houses

Further out of town, buyers can also snap up a bargain in the waterside suburbs of New Norfolk ($472,500) and Primrose Sands ($500,000), while the Western Shore suburbs of New Town ($434,000), Claremont ($440,000) and Glenorchy ($450,500) offer the most affordable units.

Cheapest Hobart suburbs for units

Darwin

Palmerston has for a long time offered some of Darwin's most affordable homes and its suburbs of Moulden, Gray and Woodroffe, around 20km south of the capital's CBD, have a median of $389,500, $390,500 and $427,500 respectively, compared to a city median property price of $495,000.

Cheapest Darwin suburbs for houses

Nearby Bakewell is the only suburb to have a median unit price under $300,000.

Located right on the city fringe, this two-bedroom unit in Darwin's Stuart Park is on the market for less than $300,000. Picture: realestate.com.au/buy

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But not all Darwin's cheapest homes huddle Palmerston. Millner, next to Darwin International Airport, boasts a median unit price of $300,000, while next door, the prettily named harbourside suburb of Coconut Grove has a median unit price of $370,000.

Cheapest Darwin suburbs for units

Canberra

The Australian Capital Territory isn't renowned for its affordability; the territory has the second highest median property price in the nation at $842,000.

Like Sydney, there are no suburbs in Canberra with a median house price below $500,000, although four out of the cheapest five suburbs for units have a median below this threshold.

Canberra is one of the least affordable capital cities in Australia. Picture: Getty

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For houses, prospective buyers must look to the city fringe for relative affordability.

Cheapest Canberra suburbs for houses

In the northern suburbs of Charnwood, Latham and Ngunnawal have median house prices of $707,500, $760,000 and $763,000 respectively. In the south, Banks and Richardson have medians of $740,000 and $750,000.

Cheapest Canberra suburbs for units

It's a similar story for units, with those in the western suburb of Wright ($450,500) and the northern suburbs of Gungahlin ($453,000) and Belconnen ($495,000) some of the cheapest.

For those wanting to be a little closer to the action, units in Bruce ($475,000) and Lyneham ($502,500) enjoy parks and reserves on their doorstep and are just a 10-minute drive from town.