The 154 capital city fringe locations for property under $300,000 - and Gagebrook, Tasmania tops the list: RP Data
There are plenty of affordable housing options across Australia within an hour of capital cities; in fact there are 154 suburbs where the median value of a house is less than $300,000. The localities in the list range between six and 85 kilometres from city centres. 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.
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 column.
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 program 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 townhouses 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, 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 | |
1 | GAGEBROOK | Greater | $140,382 | 16.km |
2 | HERDSMANS | Greater | $145,846 | 15.5km |
3 | CLARENDON | Greater Hobart | $169,487 | 9.4km |
4 | ELIZABETH | Adelaide | $172,044 | 26.km |
5 | BRIDGEWATER | Greater | $177,684 | 17.4km |
6 | ELIZABETH | Adelaide | $184,414 | 22.2km |
7 | DAVOREN | Adelaide | $185,576 | 27.km |
8 | RISDON | Greater | $187,829 | 8.1km |
9 | SMITHFIELD | Adelaide | $193,682 | 28.7km |
10 | PRIMROSE | Greater | $197,200 | 27.6km |
11 | ELIZABETH | Adelaide | $201,884 | 26.7km |
12 | ELIZABETH | Adelaide | $208,486 | 25.1km |
13 | NEW NORFOLK | Greater | $213,719 | 25.1km |
14 | ELIZABETH | Adelaide | $215,514 | 23.7km |
15 | ELIZABETH | Adelaide | $215,947 | 22.1km |
16 | CHIGWELL | Greater | $216,455 | 10.6km |
17 | ELIZABETH | Adelaide | $221,744 | 20.8km |
18 | MUNNO PARA | Adelaide | $222,095 | 29.9km |
19 | ELIZABETH | Adelaide | $223,373 | 23.5km |
20 | GOODWOOD | Greater | $223,952 | 6.8km |
21 | GAWLER | Adelaide | $226,525 | 37.9km |
22 | ROKEBY | Greater | $229,308 | 8.7km |
23 | WILLMOT | Sydney | $230,879 | 41.6km |
24 | JOHNSTON | Darwin | $231,591 | 17.9km |
25 | CARLTON | Greater | $233,142 | 25.2km |
26 | TREGEAR | Sydney | $233,974 | 40.7km |
27 | WARRANE | Greater | $235,328 | 5.3km |
28 | HACKHAM | Adelaide | $236,868 | 25.1km |
29 | LETHBRIDGE | Sydney | $237,408 | 40.5km |
30 | RUSSELL | Brisbane | $237,604 | 41.2km |
31 | SALISBURY | Adelaide | $237,869 | 20.3km |
32 | RIVERVIEW | Brisbane | $239,591 | 23.1km |
33 | $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 | Brisbane | $241,743 | 29.5km |
38 | CLAREMONT | Greater | $243,433 | 12.3km |
39 | ONE MILE | Brisbane | $243,518 | 33.8km |
40 | MILLGROVE | $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 | $250,386 | 36.5km | |
45 | EMERTON | Sydney | $250,708 | 39.7km |
46 | CAROLE PARK | Brisbane | $251,797 | 18.4km |
47 | BERRIEDALE | Greater | $254,438 | 10.5km |
48 | O’SULLIVAN | Adelaide | $254,974 | 24.1km |
49 | GLENORCHY | Greater | $255,488 | 7.km |
50 | HUNTFIELD | Adelaide | $256,225 | 26.3km |
51 | CHRISTIE | Adelaide | $257,171 | 24.3km |
52 | MELTON | $257,523 | 36.9km | |
53 | HACKHAM | Adelaide | $257,859 | 24.8km |
54 | EVANSTON | Adelaide | $258,392 | 35.7km |
55 | SALISBURY | Adelaide | $258,884 | 17.4km |
56 | SILKSTONE | Brisbane | $259,808 | 29.1km |
57 | BRAHMA | Adelaide | $260,273 | 17.5km |
58 | MORNINGTON | Greater | $260,628 | 5.6km |
59 | ANDREWS | Adelaide | $260,643 | 28.4km |
60 | NORTH | 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 | Adelaide | $263,230 | 14.4km |
65 | TIVOLI | Brisbane | $263,432 | 28.9km |
66 | LANG LANG | $263,562 | 72.8km | |
67 | NOARLUNGA | 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 | Greater | $267,033 | 6.km |
74 | PARALOWIE | Adelaide | $267,310 | 18.9km |
75 | DIGGERS | $268,271 | 30.5km | |
76 | BLACKSTONE | Brisbane | $268,921 | 28.1km |
77 | MANNERING | Sydney | $269,032 | 85.1km |
78 | CHURCHILL | Brisbane | $269,664 | 33.5km |
79 | CHARMHAVEN | Sydney | $269,689 | 75.6km |
80 | MACLEAY | Brisbane | $270,353 | 36.1km |
81 | SALISBURY | Adelaide | $270,500 | 19.5km |
82 | GAWLER | Adelaide | $270,802 | 37.7km |
83 | LOGAN | Brisbane | $271,597 | 21.1km |
84 | DODGES | Greater | $271,673 | 23.7km |
85 | SALISBURY | Adelaide | $271,930 | 17.km |
86 | GOODNA | Brisbane | $272,134 | 21.1km |
87 | WARRAGAMBA | Sydney | $273,132 | 55.7km |
88 | EAST | Brisbane | $273,206 | 29.2km |
89 | KINGSTON | Brisbane | $273,521 | 22.3km |
90 | CANTON | Sydney | $273,917 | 73.2km |
91 | 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 | Brisbane | $277,599 | 25.8km |
97 | BADGER | $277,752 | 52.7km | |
98 | EASTERN | Brisbane | $278,033 | 30.7km |
99 | MEDINA | Perth | $278,109 | 31.6km |
100 | PARAFIELD | Adelaide | $278,793 | 16.1km |
101 | CRAIGMORE | Adelaide | $278,921 | 27.3km |
102 | SALISBURY | Adelaide | $280,272 | 18.7km |
103 | SELLICKS | Adelaide | $280,353 | 46.7km |
104 | BLAKEVIEW | Adelaide | $280,670 | 28.6km |
105 | MORPHETT | Adelaide | $281,426 | 22.6km |
106 | ARMADALE | Perth | $281,473 | 25.7km |
107 | BETHANIA | Brisbane | $282,272 | 27.3km |
108 | SORELL | Greater | $284,243 | 21.8km |
109 | WATANOBBI | Sydney | $284,679 | 69.6km |
110 | ORELIA | Perth | $285,480 | 31.3km |
111 | FRANKSTON | $285,720 | 38.1km | |
112 | CABOOLTURE | Brisbane | $285,897 | 42.3km |
113 | HILLMAN | Perth | $285,915 | 37.7km |
114 | Sydney | $286,158 | 41.2km | |
115 | Perth | $286,481 | 22.4km | |
116 | SUMMERLAND | Sydney | $286,635 | 87.4km |
117 | Sydney | $287,482 | 73.9km | |
118 | NORTH | 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 | $288,765 | 36.9km | |
123 | LUTANA | Greater | $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 | 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 | Brisbane | $292,701 | 30.7km |
132 | COOLOONGUP | Perth | $292,849 | 39.3km |
133 | ORAN PARK | Sydney | $293,019 | 45.8km |
134 | Brisbane | $293,219 | 33.1km | |
135 | CAMPBELLTOWN | Sydney | $293,749 | 42.2km |
136 | WYONGAH | Sydney | $293,991 | 71.3km |
137 | MIDWAY | Greater | $294,249 | 18.9km |
138 | KOO WEE RUP | $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 | $296,332 | 31.8km | |
143 | MOONAH | Greater | $296,671 | 5.2km |
144 | MUNNO PARA | Adelaide | $296,769 | 30.1km |
145 | MONTROSE | Greater | $296,810 | 8.2km |
146 | CABOOLTURE | Brisbane | $297,354 | 44.5km |
147 | MAGRA | Greater | $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 | Sydney | $299,774 | 83.7km |
152 | MACQUARIE | Sydney | $299,787 | 32.4km |
153 | MELTON WEST | $299,849 | 39.1km | |
154 | RACEVIEW | Brisbane | $299,887 | 31.1km |
Source: RP Data
(Note Median values were used in this analysis, dated December 2011. 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).
Tim Lawless is head of research at RP Data.
