Where are the best affordable suburbs hiding in plain sight?
With cost-of-living pressures biting, buyers flocked to a handful of markets, drawn by the offer of affordability.
PRD’s latest Affordable and Liveable Property Guide has highlighted the most affordable suburbs in Sydney, Melbourne, Brisbane, and Hobart for the second part of 2024.
In the four cities, the percentage of affordable suburbs for units is higher, with an average of 48.7 per cent compared to 29.2 per cent for houses.
The percentage of affordable suburbs represents suburbs with a lower median price than the relevant metro area.
Among the top picks mentioned in the guide, Granville and Merrylands in Sydney, Broadmeadows in Melbourne, and Glenorchy in Hobart are the best suburbs for both units and houses.
According to PRD head of research, Dr Diaswati Mardiasmo, Brisbane was a difficult market in which to determine affordable suburbs.
“Choosing an affordable and liveable suburb in Brisbane was the hardest, due to property price growth in most of Brisbane’s suburbs and a low level of new residential stock planned,” she said.
“Sydney and Melbourne proved easier, as many suburbs are still experiencing negative or low-price growth, yet, with a higher level of new residential stock in the pipeline.”
Despite this, Brisbane remains the best to invest in units, with 60.3 per cent of suburbs deemed affordable for buyers interested in apartments.
Melbourne took the second spot for unit investment with 47.3 per cent of affordable suburbs with a median unit price of $610,000 – which represents a lower median price than Brisbane with $730,000.
For units, Hobart reached 45.9 per cent of affordable suburbs with a median price of $545,000, while Sydney has 41.4 per cent of affordable suburbs with a median price of $850,000.
Hobart proved to be the capital city of choice for house buyers, with 40.4 per cent of suburbs deemed affordable and a median price of $702,000.
Melbourne topped the second place with 34.5 per cent of suburbs for houses, at a median price of $1,075,00.
The report showed Brisbane reached 29.7 per cent of affordable suburbs for house buyers with a median price of $1 million.
Sydney scored the lowest score, with only 12.1 per cent of suburbs affordable for houses and had the highest median price of $1,478,925.
To determine the best suburbs in each capital city, the report analysed median price, investment return, liveability and future stock projections, making these suburbs not only desirable to live in but also affordable for many households.
The report highlighted suburbs within a 20-kilometre radius of Sydney, Melbourne, and Brisbane’s CBDs and within 10 kilometres of Hobart’s centre.
Mardiasmo said that all the suburbs identified have great liveability criteria.
“All identified suburbs have low crime rates, amenities within a 5-kilometre radius such as schools, green spaces, public transport, shopping centres and health care facilities, and an unemployment rate on par or lower in comparison to the state average,” she said.
The most affordable suburbs with incoming new supply and good investment fundamentals were determined to be:
Sydney – houses
Granville – median price: $1,123,000; rental yield: 6 per cent
Merrylands – median price: $1,250,000; rental yield: 5.9 per cent
Bankstown – median price: $1,300,500; rental yield: 5.7 per cent
Sydney – units
Granville – median price: $542,000; rental yield: 6 per cent
Merrylands – median price: $550,000; rental yield: 5.9 per cent
Parramatta – median price: $570,000; rental yield: 5,8 per cent
Melbourne – houses
Broadmeadows – median price: $568,000; rental yield: 4.3 per cent
Albanvale – median price: $625,000; rental yield: 4.1 per cent
Mill Park – median price: $766,750; rental yield: 4 per cent
Melbourne – units
Williams Landing – median price: $410,000; rental yield: 4.8 per cent
Broadmeadows – median price: $440,000; rental yield: 5.5 per cent
Prahran – median price: $480,000; rental yield: 5.3 per cent
Brisbane – houses
Inala – median price: $700,000; rental yield: 3.5 per cent
Darra – median price: $770,000; rental yield: 3.3 per cent
Zillmere – median price: $825,000; rental yield: 3.7 per cent
Brisbane – units
Spring Hill – median price: $480,000; rental yield: 5.8 per cent
Mitchelton – median price: $600,000; rental yield: 3.9 per cent
South Brisbane – median price: $605,000; rental yield: 5.2 per cent
Hobart – houses
Berriedale – median price: $517,500; rental yield: 4.6 per cent
Glenorchy – median price: $532,500; rental yield: 4.7 per cent
Rokeby – median price: $589,100; rental yield: 4.1 per cent
Hobart – units
Glenorchy – median price: $426,000; rental yield: 5.3 per cent
New Town – median price: $455,000; rental yield: 4.7 per cent
Moonah – median price: $457,500; rental yield: 4.5 per cent