Where can you buy a home under $300,000?

RP Data’s Property Pulse report released this week provides a comprehensive segmentation of median house prices by suburb across the capital cities.  The research results showed that just 7.1% of capital city suburbs have a median house price less than $300,000.  The lowest proportion was Canberra where there wasn’t a single suburb with a median house price under $300,000.  Melbourne recorded just 2.6% of all suburbs with a median under $300k, Perth recorded 3.8% of all suburbs, Sydney 4.2%, Darwin 5.4%, Brisbane 13.1%, Adelaide 11.0% and Hobart had the highest proportion of suburbs at 41.0% with a median price under $300k.

To provide a more granular analysis, I thought it would be interesting to look at where the most sales (houses and units) were occurring under the $300,000 mark.  Interestingly, when you break the analysis down to a finer level like this, based on actual sales rather than median prices, across the country the results are a little bit different (but still highlight the low proportion of very affordable properties in some locations).

The table below shows the proportion of properties that have sold since January 2011 to now where the sale price was under $300k:

No surprises that the regional markets offer much more affordable price points, as do the smaller capital cities of Hobart and Adelaide.  Importantly, around 10% to 15% of all dwelling sales across the larger capital cities have transacted at price points under $300,000, highlighting the fact that affordable housing stock does exist… you just need to know where to look.  It also helps if you don’t mind a long commute into the CBD and/or owning an apartment rather than a house.

The tables below show the top 20 suburbs across both the capital cities and the regional markets of each state and territory based on the number of dwelling sales recorded at a price under $300,000 since January 2011.

About Tim Lawless

Tim heads up the RP Data research and analytics team, analysing real estate markets, demographics and economic trends across Australia

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8 Responses to Where can you buy a home under $300,000?

  1. Capital Appreciation March 23, 2012 at 2:39 pm #

    Hi Tim

    I think you’ll find that your numbers for Canberra properties under 300K are an overestimate. The top four Canberra suburbs in the table above (Bonner, Casey, Crace and Forde) are all relatively new suburbs and the sales under 300K in 2011 in these suburbs are likely to be for land only, house only or house on a land rent option (the latter is a new ACT government initiative). You’d be lucky to buy a unit in those suburbs for under 300K, which your Table above indicates. The 31 sales reported for Macgregor are also likely to have been house only or land only. The fact is there are very few properties available for sale in the ACT less than $300K

    Cheers
    Capital Appreciation

    • Tim Lawless March 23, 2012 at 2:47 pm #

      Capital Appreciation, thanks for your clarification.

      • Capital Appreciation March 24, 2012 at 7:34 am #

        Hi Tim

        It would be great if you could clarify the numbers. I’ve thought some more and the new Canberra suburbs are part of an affordable house and land package, which is supported/subsidised by the ACT government. So some of these may have sold under $300K, but your transaction numbers for these Canberra suburbs did still seem a bit high.
        Cheers
        CA

  2. Darwin Valuer March 23, 2012 at 4:36 pm #

    The figures provided for the Darwin region are completely flawed. The “home” sales shown for the top two suburbs used are all vacant land sales within 2 new subdivisions, therefore 342 out of your total 459 home sales used for the Darwin area are not “homes”.

    Further our records show only 2 “home” sales occurred within Farrar, 3rd on the list, not 41!

    Another good example is the suburb of Rosebery, 4th on your list, all of the 17 “home” sales are either vacant land sales or related purchases, and therefore not a single “home” sale occurred for under $300,000 in this period.

    I’ve stopped looking for further flaws in the information provided as I think I have sufficiently demonstrated we need to take the information with not just a pinch of salt but a road train full of the stuff.

    • Tim Lawless March 23, 2012 at 8:57 pm #

      Darwin Valuer, thank you for your comments. Admittedly, NT property transaction records are some of the vaguest of any region around the country. The States all have varying quality of data, but at the very least it is generally straight forward to differentiate between a house sale and one which is vacant land. I’ve pulled the table off the blog until I can get some clarification. Thanks for your comments and taking the time to investigate the results. Tim.

  3. Dubbo Developer April 13, 2012 at 5:09 pm #

    Tim

    Great article. I would have liked to see what % the homes under $300k are out of the total sale of all homes in each area not just the total of all sales under $300k.

    As a regional based developer it is useful to compare our performance with outher towns in our region.

    Thanks

  4. Dan April 13, 2012 at 11:33 pm #

    You don’t mention Lismore.
    It has to be the best value suburb in Australia for offering plenty of good houses under $300K. It is near the coast but still has a country ambiance. Population around 55,000. has a big University, 2 hospitals, public and private schools, great infrastructure, lots of culture and quite multicultural as the Uni brings in plenty of foreign students. It is clean, green and friendly and affordable. Plenty of jobs for those willing to work. Don’t understand why it always flys under the radar. Nearby suburbs like Casino are also top value.

  5. Clem October 31, 2013 at 8:19 pm #

    These figures are not relevant in October 2013.
    Why have an out of date reference as a link?

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