There are plenty of affordable housing options across Australia’s capital cities; in fact there are 154 suburbs where the median value of a house is less than $300,000. Adelaide suburbs comprise the majority of these ‘uber’ affordable locations, comprising 28% of the list. Brisbane suburbs rank a close second at 24% of all capital city suburbs with a median value under $300,000, followed by Sydney at 18% then Hobart comprising 16% of all suburbs.
(note we are using median values in this analysis – RP Data values every residential property across the country each week using an automated valuation methodology – the median value provides a better indication than a median price about true value of properties within a suburb rather than simply the median price of any homes that have transacted over the analysis period).
So why aren’t first home buyers and low income families rushing into these markets?
Well these suburbs are generally cheap for a reason and demand to live in these locations can be low.
Often they are plagued with social issues and high crime rates, they are poorly serviced by transport options, the homes are interspersed with industrial land uses or the suburb is simply far removed from any working node, retail amenity or essential infrastructure such as schools and health care. Sometimes the suburb simply has a bad reputation based on what the suburb used to be like before it gentrified; reputations and stigma can be a hard thing to shake.
The full list of suburbs where the median value is below $300,000 is included at the end of the post.
The typical argument to improve housing affordability revolves around ensuring the Government releases a sufficient supply of strategically located land that is well connected with transport infrastructure and is associated with essential amenities. While there have been some areas around the country where housing supply has been sufficient, for the most part Australia remains an undersupplied housing market (the National Housing Supply Council report is due for release shortly which will provide a much anticipated update to their housing supply report last released back in April 2010).
Moving away from the supply side debate, perhaps another idea to improve the housing affordability situation in Australia is to focus some efforts on improving the liveability within some of the more strategically located suburbs that currently feature low housing prices. The Brisbane SCIP (Suburban Centre Improvement Projects) program is a good example of how a Local Government can work with local businesses to improve the streetscape and outlook of a suburb’s commercial and retail heart. The outcomes from this programme rely on financial commitments from local stakeholders together with Government funding and in most instances the benefits of the investment well and truly outweigh the costs.
Infrastructure spending is another solution. Opening up affordable suburbs that aren’t currently well serviced by public and private transport infrastructure increases demand for housing in these locations. New roads, rail and busways are expensive and considering the frugal nature of Federal and State budgets at the moment we can’t expect a great deal of improvement here apart from those projects already underway. Prospective home buyers seeking an affordable option would be wise to check out local infrastructure plans and projects and examine the housing markets along the path of these projects.
Another course of action is to look at medium and high density housing options. Clearly more and more buyers are turning to apartments and townhomes as an alternative to detached home for the more competitive price points. Across the combined capital cities the difference between the median house price and median unit price is a substantial 11% or $50,000.
Finally, if you are using median prices or values as a guide to help your initial property search, don’t forget that medians are simply the middle price or value. There are equally as many homes with a value lower than the median as there are homes with a value higher median. Many prospective buyers don’t consider a particular location because the median price is too high, forgetting that there are likely to be homes priced available at prices well below the overall median. A good idea may be to look at the range of sales over the past 12 months, that way potential purchasers can analyse the whole gamut of properties which have sold over the period.
Housing affordability is a complex issue, and with the Government seemingly reluctant to make any serious commitments to improving housing supply or come up with any new ideas about how to tackle the situation (as Caryn Kakas from the Residential Development Council pointed out in the Financial Review yesterday, the Government has no forward looking housing policy) there needs to be some strategic consideration of other alternatives.
| Capital city suburbs with a median house value under $300,000 | ||||
|
|
Suburb | City |
Median Value |
Avg distance to GPO |
|
1 |
GAGEBROOK | Greater Hobart |
$140,382 |
16.km |
|
2 |
HERDSMANS COVE | Greater Hobart |
$145,846 |
15.5km |
|
3 |
CLARENDON VALE | Greater Hobart |
$169,487 |
9.4km |
|
4 |
ELIZABETH NORTH | Adelaide |
$172,044 |
26.km |
|
5 |
BRIDGEWATER | Greater Hobart |
$177,684 |
17.4km |
|
6 |
ELIZABETH GROVE | Adelaide |
$184,414 |
22.2km |
|
7 |
DAVOREN PARK | Adelaide |
$185,576 |
27.km |
|
8 |
RISDON VALE | Greater Hobart |
$187,829 |
8.1km |
|
9 |
SMITHFIELD PLAINS | Adelaide |
$193,682 |
28.7km |
|
10 |
PRIMROSE SANDS | Greater Hobart |
$197,200 |
27.6km |
|
11 |
ELIZABETH DOWNS | Adelaide |
$201,884 |
26.7km |
|
12 |
ELIZABETH PARK | Adelaide |
$208,486 |
25.1km |
|
13 |
NEW NORFOLK | Greater Hobart |
$213,719 |
25.1km |
|
14 |
ELIZABETH | Adelaide |
$215,514 |
23.7km |
|
15 |
ELIZABETH SOUTH | Adelaide |
$215,947 |
22.1km |
|
16 |
CHIGWELL | Greater Hobart |
$216,455 |
10.6km |
|
17 |
ELIZABETH VALE | Adelaide |
$221,744 |
20.8km |
|
18 |
MUNNO PARA | Adelaide |
$222,095 |
29.9km |
|
19 |
ELIZABETH EAST | Adelaide |
$223,373 |
23.5km |
|
20 |
GOODWOOD | Greater Hobart |
$223,952 |
6.8km |
|
21 |
GAWLER WEST | Adelaide |
$226,525 |
37.9km |
|
22 |
ROKEBY | Greater Hobart |
$229,308 |
8.7km |
|
23 |
WILLMOT | Sydney |
$230,879 |
41.6km |
|
24 |
JOHNSTON | Darwin |
$231,591 |
17.9km |
|
25 |
CARLTON | Greater Hobart |
$233,142 |
25.2km |
|
26 |
TREGEAR | Sydney |
$233,974 |
40.7km |
|
27 |
WARRANE | Greater Hobart |
$235,328 |
5.3km |
|
28 |
HACKHAM WEST | Adelaide |
$236,868 |
25.1km |
|
29 |
LETHBRIDGE PARK | Sydney |
$237,408 |
40.5km |
|
30 |
RUSSELL ISLAND | Brisbane |
$237,604 |
41.2km |
|
31 |
SALISBURY NORTH | Adelaide |
$237,869 |
20.3km |
|
32 |
RIVERVIEW | Brisbane |
$239,591 |
23.1km |
|
33 |
WOLLERT | Melbourne |
$240,202 |
22.3km |
|
34 |
SMITHFIELD | Adelaide |
$240,779 |
28.1km |
|
35 |
LEICHHARDT | Brisbane |
$240,930 |
33.7km |
|
36 |
GAILES | Brisbane |
$241,201 |
19.4km |
|
37 |
BASIN POCKET | Brisbane |
$241,743 |
29.5km |
|
38 |
CLAREMONT | Greater Hobart |
$243,433 |
12.3km |
|
39 |
ONE MILE | Brisbane |
$243,518 |
33.8km |
|
40 |
MILLGROVE | Melbourne |
$244,994 |
61.2km |
|
41 |
BLACKETT | Sydney |
$245,169 |
39.1km |
|
42 |
LAMB ISLAND | Brisbane |
$246,361 |
38.8km |
|
43 |
WHALAN | Sydney |
$249,067 |
39.1km |
|
44 |
MELTON SOUTH | Melbourne |
$250,386 |
36.5km |
|
45 |
EMERTON | Sydney |
$250,708 |
39.7km |
|
46 |
CAROLE PARK | Brisbane |
$251,797 |
18.4km |
|
47 |
BERRIEDALE | Greater Hobart |
$254,438 |
10.5km |
|
48 |
O’SULLIVAN BEACH | Adelaide |
$254,974 |
24.1km |
|
49 |
GLENORCHY | Greater Hobart |
$255,488 |
7.km |
|
50 |
HUNTFIELD HEIGHTS | Adelaide |
$256,225 |
26.3km |
|
51 |
CHRISTIE DOWNS | Adelaide |
$257,171 |
24.3km |
|
52 |
MELTON | Melbourne |
$257,523 |
36.9km |
|
53 |
HACKHAM | Adelaide |
$257,859 |
24.8km |
|
54 |
EVANSTON GARDENS | Adelaide |
$258,392 |
35.7km |
|
55 |
SALISBURY DOWNS | Adelaide |
$258,884 |
17.4km |
|
56 |
SILKSTONE | Brisbane |
$259,808 |
29.1km |
|
57 |
BRAHMA LODGE | Adelaide |
$260,273 |
17.5km |
|
58 |
MORNINGTON | Greater Hobart |
$260,628 |
5.6km |
|
59 |
ANDREWS FARM | Adelaide |
$260,643 |
28.4km |
|
60 |
NORTH BOOVAL | Brisbane |
$261,602 |
27.8km |
|
61 |
GOROKAN | Sydney |
$262,023 |
73.4km |
|
62 |
BURTON | Adelaide |
$262,083 |
20.4km |
|
63 |
BUNDAMBA | Brisbane |
$262,361 |
26.4km |
|
64 |
PARA HILLS WEST | Adelaide |
$263,230 |
14.4km |
|
65 |
TIVOLI | Brisbane |
$263,432 |
28.9km |
|
66 |
LANG LANG | Melbourne |
$263,562 |
72.8km |
|
67 |
NOARLUNGA DOWNS | Adelaide |
$263,816 |
26.9km |
|
68 |
SHALVEY | Sydney |
$264,293 |
40.km |
|
69 |
SAN REMO | Sydney |
$265,491 |
78.1km |
|
70 |
BIDWILL | Sydney |
$265,727 |
39.km |
|
71 |
WOODRIDGE | Brisbane |
$266,206 |
19.3km |
|
72 |
EVANSTON | Adelaide |
$266,857 |
36.4km |
|
73 |
DERWENT PARK | Greater Hobart |
$267,033 |
6.km |
|
74 |
PARALOWIE | Adelaide |
$267,310 |
18.9km |
|
75 |
DIGGERS REST | Melbourne |
$268,271 |
30.5km |
|
76 |
BLACKSTONE | Brisbane |
$268,921 |
28.1km |
|
77 |
MANNERING PARK | Sydney |
$269,032 |
85.1km |
|
78 |
CHURCHILL | Brisbane |
$269,664 |
33.5km |
|
79 |
CHARMHAVEN | Sydney |
$269,689 |
75.6km |
|
80 |
MACLEAY ISLAND | Brisbane |
$270,353 |
36.1km |
|
81 |
SALISBURY PARK | Adelaide |
$270,500 |
19.5km |
|
82 |
GAWLER SOUTH | Adelaide |
$270,802 |
37.7km |
|
83 |
LOGAN CENTRAL | Brisbane |
$271,597 |
21.1km |
|
84 |
DODGES FERRY | Greater Hobart |
$271,673 |
23.7km |
|
85 |
SALISBURY EAST | Adelaide |
$271,930 |
17.km |
|
86 |
GOODNA | Brisbane |
$272,134 |
21.1km |
|
87 |
WARRAGAMBA | Sydney |
$273,132 |
55.7km |
|
88 |
EAST IPSWICH | Brisbane |
$273,206 |
29.2km |
|
89 |
KINGSTON | Brisbane |
$273,521 |
22.3km |
|
90 |
CANTON BEACH | Sydney |
$273,917 |
73.2km |
|
91 |
SALISBURY | Adelaide |
$274,416 |
18.4km |
|
92 |
BOOVAL | Brisbane |
$274,547 |
28.4km |
|
93 |
ROSEWOOD | Brisbane |
$274,567 |
46.9km |
|
94 |
REYNELLA | Adelaide |
$275,183 |
20.km |
|
95 |
EAGLEBY | Brisbane |
$275,337 |
31.6km |
|
96 |
REDBANK PLAINS | Brisbane |
$277,599 |
25.8km |
|
97 |
BADGER CREEK | Melbourne |
$277,752 |
52.7km |
|
98 |
EASTERN HEIGHTS | Brisbane |
$278,033 |
30.7km |
|
99 |
MEDINA | Perth |
$278,109 |
31.6km |
|
100 |
PARAFIELD GARDENS | Adelaide |
$278,793 |
16.1km |
|
101 |
CRAIGMORE | Adelaide |
$278,921 |
27.3km |
|
102 |
SALISBURY PLAIN | Adelaide |
$280,272 |
18.7km |
|
103 |
SELLICKS BEACH | Adelaide |
$280,353 |
46.7km |
|
104 |
BLAKEVIEW | Adelaide |
$280,670 |
28.6km |
|
105 |
MORPHETT VALE | Adelaide |
$281,426 |
22.6km |
|
106 |
ARMADALE | Perth |
$281,473 |
25.7km |
|
107 |
BETHANIA | Brisbane |
$282,272 |
27.3km |
|
108 |
SORELL | Greater Hobart |
$284,243 |
21.8km |
|
109 |
WATANOBBI | Sydney |
$284,679 |
69.6km |
|
110 |
ORELIA | Perth |
$285,480 |
31.3km |
|
111 |
FRANKSTON NORTH | Melbourne |
$285,720 |
38.1km |
|
112 |
CABOOLTURE SOUTH | Brisbane |
$285,897 |
42.3km |
|
113 |
HILLMAN | Perth |
$285,915 |
37.7km |
|
114 |
NORTH ST MARYS | Sydney |
$286,158 |
41.2km |
|
115 |
CAMILLO | Perth |
$286,481 |
22.4km |
|
116 |
SUMMERLAND POINT | Sydney |
$286,635 |
87.4km |
|
117 |
TOUKLEY | Sydney |
$287,482 |
73.9km |
|
118 |
NORTH IPSWICH | Brisbane |
$287,632 |
29.8km |
|
119 |
PARA HILLS | Adelaide |
$287,918 |
13.8km |
|
120 |
DHARRUK | Sydney |
$288,113 |
38.6km |
|
121 |
HEBERSHAM | Sydney |
$288,123 |
38.1km |
|
122 |
KURUNJANG | Melbourne |
$288,765 |
36.9km |
|
123 |
LUTANA | Greater Hobart |
$288,974 |
5.km |
|
124 |
GWANDALAN | Sydney |
$289,486 |
88.km |
|
125 |
PARMELIA | Perth |
$289,666 |
32.8km |
|
126 |
REDBANK | Brisbane |
$290,403 |
22.2km |
|
127 |
SLACKS CREEK | Brisbane |
$290,488 |
21.8km |
|
128 |
KANWAL | Sydney |
$290,857 |
72.1km |
|
129 |
INGLE FARM | Adelaide |
$290,937 |
11.8km |
|
130 |
CRESTMEAD | Brisbane |
$291,832 |
25.4km |
|
131 |
DECEPTION BAY | Brisbane |
$292,701 |
30.7km |
|
132 |
COOLOONGUP | Perth |
$292,849 |
39.3km |
|
133 |
ORAN PARK | Sydney |
$293,019 |
45.8km |
|
134 |
WULKURAKA | Brisbane |
$293,219 |
33.1km |
|
135 |
CAMPBELLTOWN | Sydney |
$293,749 |
42.2km |
|
136 |
WYONGAH | Sydney |
$293,991 |
71.3km |
|
137 |
MIDWAY POINT | Greater Hobart |
$294,249 |
18.9km |
|
138 |
KOO WEE RUP | Melbourne |
$294,369 |
63.1km |
|
139 |
CALISTA | Perth |
$294,451 |
33.km |
|
140 |
BROOKDALE | Perth |
$295,396 |
27.4km |
|
141 |
BUDGEWOI | Sydney |
$295,925 |
77.4km |
|
142 |
WYNDHAM VALE | Melbourne |
$296,332 |
31.8km |
|
143 |
MOONAH | Greater Hobart |
$296,671 |
5.2km |
|
144 |
MUNNO PARA WEST | Adelaide |
$296,769 |
30.1km |
|
145 |
MONTROSE | Greater Hobart |
$296,810 |
8.2km |
|
146 |
CABOOLTURE | Brisbane |
$297,354 |
44.5km |
|
147 |
MAGRA | Greater Hobart |
$297,916 |
26.7km |
|
148 |
INALA | Brisbane |
$298,157 |
15.2km |
|
149 |
WILLASTON | Adelaide |
$298,696 |
40.1km |
|
150 |
LOGANLEA | Brisbane |
$299,237 |
25.5km |
|
151 |
CHAIN VALLEY BAY | Sydney |
$299,774 |
83.7km |
|
152 |
MACQUARIE FIELDS | Sydney |
$299,787 |
32.4km |
|
153 |
MELTON WEST | Melbourne |
$299,849 |
39.1km |
|
154 |
RACEVIEW | Brisbane |
$299,887 |
31.1km |
|
Source: rpdata.com Note median values are based on the RP Data automated valuations methodology rather than median prices which provides a more accurate assessment of true housing value across the suburb rather than the median price for only those homes that have recently sold. |
||||
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Tim,
I’d recommend you consider thinking about the focus of what you are writing.
This story is titled “154 capital city suburbs with a median house value under $300,000″
Yet, you include many suburbs that are nowhere near Australian capital cities.
For example, Gorokan, Mannering Park and Wyongah are a part of the Central Coast.
Mannering Park is a small township located on an isolated peninsular on the southern shores of Australia’s largest and most picturesque salt water lake, Lake Macquarie.
Mannering Park is in the northern area of Wyong Shire but being on Lake Macquarie it is bounded by the Lake Macquarie City Council . (Mannering Park Community Website, http://manneringpark.nsw.au/)
I haven’t bothered to look into some of the other suburbs which appear on your list (over 50km from the GPO of their respective capital cities) as I’m sure they would be a similar situation.
I did appreciate paragraphs 3 & 4 which discussed the reasons why these suburbs are under $300k, but found your full list of suburbs uneccessarily padded out.
Cheers,
Jason
Thanks Jason, we always stick to standardised boundaries for our analysis and reporting. The suburbs are all within capital city Statistical Divisions. The statistical division is widely regarded as the accepted ‘norm’ for a capital city boundary description. You can view the Australian Standard Geographical Classifications at the ABS web site for more detail.
This just goes to show why you can’t always trust the ‘data’.
Anyone looking to buy in Sydney would do well to avoid Mannering Park – about a two hour train ride away, and nowhere near the train line.
You’d do better to look there if you’re working in Newcastle – it’s only about a half-hours drive.
Nice article Tim, always interesting to see such analysis, which act as food for thought, though I doubt many of us are prepared to move to Adelaide fringes just to get a cheap home!
Thanks Philip – very true there needs to be a few reasons to buy rather than just being cheap!
I’ve added a link to your article on my Propell blog. Cheers Phil
Hi i am from hillman and we are on the lower end of the market . I ask the question Why? We are close to all facilities the rail station, the shopping centre, tafe and murdoch, doctors, kwinana freeway, hospital, beaches, every facility is within distance of the residents. We have our own primary school, homes are established on larger blocks of land, and some homes may be older but they are built to last. Although we are in the vincinity of businesses on dixon road this is a plus as far as having access to business and trade when needed. We have parklands and are close to the natural reserve for walks of coolongup lake. We have lots of open spaces and greenery and we also have laneways where you can access other areas of hillman by walking. Our crime rate is very low and we are like a village where our suburb is seperate from others, we have a majority of people and neighbours who are responsible and respectful of each other. The truth is that hillman does not get the recognition it deserves . Hillman had a stigma in the very early days when it was first populated this is not the hillman of today so who determines a area particularly when it seems to me that the information that is either told by word or advertising is not correct and it continues to hold back a good area to reside in and also lowers the value of that area.
It’s an interesting question Narelle, and I agree with your assessment of Hillman. In fact I think most of the suburbs around Rockingham provide a decent value propostion for prospective buyers seeking an affordable detached home within commuting distance to Perth and close to the coast. There are other local suburbs of Rockingham with similarly affordable prices (Cooloongup for example also shows a median house price under $300k). It takes some time for outlying suburbs to gather momentum, however affordability and accessibility are going to remain high on the agenda of prospective home buyers for the foreseeable future – I wouldn’t be surprised to see areas like Hillman benefit from that demand over time.