Middle-ring suburbs across the country’s capital cities are the best bet for house hunters seeking both affordability and liveability, a new report has found
Rapidly rising property prices in Australia have seen premiums climb for desirable pockets, but liveable suburbs are not completely out of reach for those on more of a budget, the latest PRD Affordable and Liveable Property Guide shows.
The report identified suburbs to watch within a 20-kilometre radius of the Sydney, Melbourne and Brisbane central business districts, and within 10 kilometres of the Hobart city centre.
Suburbs had to have relatively affordable median prices, decent rental yields and a high estimated value of future project and infrastructure development – to ensure the suburbs showed signs of sustainable economic growth. They also had to have low crime rates, an unemployment rate on par with, or lower than, the state average, and proximity to amenities like schools, public transport, shopping centres, green spaces and health services.
“It’s not just about living in the cheapest suburb,” PRD chief economist Diaswati Mardiasmo said of the report. “But also about being able to live in a suburb that is well serviced by public transport, amenities and everything you need [for the most affordable price point].”
Finding suburbs that met the criteria had become increasingly challenging in the current market, Dr Mardiasmo said, with the number of such suburbs in Sydney, Melbourne and Brisbane halving over the past six months. However, there were still some pockets where good liveability cost less of a premium.
Here’s where buyers should cast their gaze in each of the included cities.
| AFFORDABLE AND LIVEABLE SUBURBS – UNITS | ||||
| Suburb | Median price | Rental yield | Future projects | |
| Sydney | Cromer | $812,500 | 3.4% | $3.0M |
| Peakhurst | $751,000 | 3.9% | $31.5M | |
| Mortdale | $657,250 | 4.3% | $4.5M | |
| Melbourne | Truganina | $446,000 | 3.9% | $1.9B |
| Greenvale | $590,000 | 5.8% | $9.5M | |
| Hadfield | $600,000 | 3.5% | $8.9M | |
| Brisbane | McDowall | $423,000 | 5.4% | $33.9M |
| Gordon Park | $440,000 | 5.6% | $3.0M | |
| Kedron | $449,000 | 5.6% | $11.7M | |
| Hobart | Oakdowns | $550,000 | 5.3% | $6.0M |
| Moonah | $480,000 | 5.3% | $1.8M | |
| Glenorchy | $410,000 | 5.3% | $10.6M | |
| Source: PRD Affordable and Liveable Property Guides 2nd Half 2021. | ||||
Brisbane
Brisbane had the largest proportion of houses available for buyers with lower to middle budgets, with more than a quarter of sales within the metro region this year below $700,000. However, Brisbane buyers need to spend more of a premium to purchase in a liveable suburb.
While Brisbane, along with Hobart, was typically thought of as a more affordable capital city, many of the lower-priced suburbs failed to satisfy other criteria such as liveability, investment return and future project development, the report noted.
The top selections were largely to the city’s north, with the exceptions of Birkdale and Oxley.
Gordon Park was among the Brisbane picks for apartment buyers. Photo: Tammy Law
“Many people think that when they need to go to an affordable place, they need to go to the northern part of the city … but Oxley is in the southwest and Birkdale is in the east,” Dr Mardiasmo said, adding that more established areas were often overlooked for newer suburbs where buyers knew prices would be lower.
Both Birkdale ($720,000) and Oxley ($695,000) were more expensive than Bracken Ridge ($624,000) in the north, which was the third pick for house hunters.
The north is also where those after an apartment should look, with McDowall, Gordon Park and Kedron making the list. Each had a median unit price below $450,000 – a price tag that 45 per cent of Brisbane metro apartments sold below this year.
Hobart
The cost of liveability, particularly for house hunters, remains the highest in Hobart, where residents need to pay the largest premium for liveable suburbs. Low supply meant many of Hobart’s liveable suburbs were priced above the city’s median, meaning they failed the affordability test, the report noted, while more affordable suburbs did not pass the liveability criteria.
“The perception of Hobart being the most affordable place have changed, we’re seeing record-breaking sales and a lot of it is to do with little supply, ” Dr Mardiasmo said.
Berriedale in Hobart has a median unit price of $480,000, according to PRD figures.
Oakdowns, about a 20-minute drive from the CBD, made the top picks for both house and units, with medians of $595,000 for houses and $550,000 for units.
Howrah ($705,000) and Berriedale ($480,000) were also among the picks for house-hunters, while Moonah ($480,000) and Glenorchy ($410,000) were selected for apartment buyers.
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