‘Much more affordable’: Underrated suburbs hiding in plain sight – realestate.com.au

These suburbs could be primed for further price growth as buyers look for more affordable options and better value for their money.

Property prices in Australia have been steadily rising, with a typical home now worth about $81,000 more than a year ago, and prices in some capital cities up to $153,000 higher.

While the federal government’s expanded 5% deposit scheme will likely help some new buyers get into the market faster, that incentive could be a double-edged sword, with the extra demand expected to push up prices.

For buyers looking to find their ideal home at an affordable price this year, rising prices may mean looking in a suburb a little further outside their search network.

Many suburbs in Australia remain more affordable than their neighbors, but with buyers increasingly prioritizing value, that gap may not last long.

Angus Moore, executive manager of economics at REA Group, said price growth in relatively affordable suburbs and cities was likely to outpace the wider market in the coming year.

“We are already in an environment where affordability is being tested and with interest rates rising, that will get worse,” he said.

“That will probably favor more affordable parts of the cities, and more affordable cities.”

With that in mind, these are just a handful of suburbs where home prices may be undervalued relative to surrounding suburbs or similar areas.

Canterbury and Campsie, NSW

The western part of Sydney isn’t exactly the most affordable part of the city, but searching the suburbs southwest of the Cooks River can yield significant savings.

While average prices are well above $2 million in suburbs such as Marrickville ($2.13 million), Dulwich Hill ($2.5 million) and Hurlstone Park ($2.3 million), prices in Canterbury ($1.99 million) and Campsie ($1.83 million) dip below $2 million.

These suburbs are not only cheaper than their neighbors, but also have an upcoming catalyst for growth when the new metro line opens later this year, bringing you to the city in less than 20 minutes.

Many buyers had already purchased the area before Metro opened, said agent Peter Kassas of LJ Hooker Campsie.

“We are getting an influx of buyers from Marrickville, Dulwich and Summer Hill,” he said. “It’s a six or seven minute drive to Canterbury Road, but it’s much more affordable.”

Real estate agent Manuel Roussakis of Ray White Canterbury said two-bedroom apartments in the area typically sell for $200,000 to $300,000 less than in Dulwich Hill.

Goulburn, NSW

The regional city of Goulburn is about an hour from Canberra and two hours from Sydney and has a median house price of $660,000, which is less than half the cost of a typical Sydney home.

It is also significantly more affordable than Canberra, where the average house value is just over $1 million, as are Southern Highlands suburbs such as Moss Vale (1.035 million), Bowral ($1.5 million) and Mittagong ($1.155 million).

Goulburn has the feel of a country town, but has the infrastructure and services of a major regional city. Image: realestate.com.au/sold

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Although further from Sydney, its size provides employment diversity, and its location on the Hume Highway and a direct train line to Sydney enhance its appeal for commuters and first home buyers.

Property agent Patricia Murphy of One Agency Goulburn said the city was growing and attracting new buyers looking for an affordable home within reach of both capitals.

“It used to be buyers from Canberra that drove our market, but that has changed in the last five years and more people from Sydney have come this way,” she said. “They discover that it is cheaper than in other cities.”

Bayswater, VIC

Bayswater in Melbourne’s east is transitioning from its industrial past to a more residentially focused suburb, offering buyers slightly better value for money than the more expensive nearby suburbs

While average house prices in Ringwood and Wantirna have already passed the $1 million mark, Bayswater remains more affordable, although buyers appear to be taking notice, with the average price up 10% in the past year to $950,000.

This renovated two-bedroom house in Bayswater sold last year for $845,000. Image: realestate.com.au/sold

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Property agent Dean Kehagias of Barry Plant Wantirna said Bayswater had the same benefits as surrounding suburbs, with the added bonuses of a train station and lower prices.

“It’s undervalued by comparison,” he says. “In Wantirna, Ringwood and Heathmont you are looking at a sales price that is 20-30% higher than in Bayswater.”

Wodonga, VIC

Although Wodonga is half of the twin city of Albury-Wodonga, house prices are much more affordable than on the north side of the Murray.

Albury has a median house price of $933,000, compared to $620,000 in Wodonga, meaning a typical house in Wodonga is around 36% cheaper than its counterpart in NSW.

Living in Wodonga is much more affordable than Albury, and investors are starting to take notice. Image: realestate.com.au/sold

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While Albury may be home to older established neighborhoods and a greater concentration of government and professional jobs, Wodonga has newer residential areas, with the additional supply of housing keeping prices more affordable.

Prices are rising faster in Wodonga (up almost 15% in the past year) than in Albury (up 6%), suggesting buyers are taking advantage of this price difference.

But that relative discount could diminish in coming years, according to Jamie Maynard, director of Elders Real Estate Wodonga, who has fielded a large number of inquiries from buyers’ agents representing investors from across Australia.

“We are an emerging area,” he said. “I believe it’s a more livable city; it’s easier to get around, it has great schools and it’s definitely more affordable.”

Beenleigh, QLD

Located halfway between Brisbane and the Gold Coast, Beenleigh remains under the radar, with house prices still relatively accessible.

Its location on the M1 motorway and its own train station allow easy commuting in both directions, allowing the suburb to benefit from the growth of both cities.

One of the advantages of Beenleigh is its location halfway between Brisbane CBD and the Gold Coast. Image: realestate.com.au/sold

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It is not as expensive as suburbs closer to Brisbane, such as Tanah Merah, or more recently developed suburbs in the area with newer housing stock, such as Waterford or Holmview.

It is home to schools, parks, shopping and dining, and many older homes are ripe for renovation.

Rockingham, WA

With an average house price of $785,000, Rockingham stands out as one of the most affordable suburbs on Perth’s coast, with most similarly priced suburbs located further from the city or inland.

Although it is about 45 minutes from the CBD, it is one of the few Perth suburbs where buyers can find a detached home within walking distance of the beach for under $1 million.

Rockingham is one of the few beachside suburbs of Perth with an average house price of less than $1 million. Image: realestate.com.au/sold

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Property agent Nola Tully of Harcourts Elite Agents said the area had become more popular as buyers’ perceptions changed.

“It was undervalued for years, but it has risen significantly in the last five or six years,” she says.

“For a long time it had a stigma of way back when it was a beach town with too many kids with nothing to do and getting up to mischief.”

“Now it’s a good family area with a great community. The beaches are pristine, there are beautiful cafes and there are lots of festivals and things like that.”

Ulverstone, TAS

Located on Tasmania’s north coast, Ulverstone offers a similar lifestyle and access to nearby towns, but with more affordable house prices.

Ulverstone is one of Australia’s most affordable beach towns. Image: realestate.com.au/sold

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Although nearby Penguin has a higher national profile and attracts downsizers and seachangers, properties are therefore more expensive.

Ulverstone is also slightly closer to Devonport, the region’s main employment centre, yet retains the relaxed, small town atmosphere.

Hallett Cove, SA

Buyers willing to travel a little further south from Adelaide’s most popular beachside suburbs will find significant savings in Hallet Cove, where the average house price is $945,000.

That’s about $440,000 cheaper than neighboring Marino, $455,000 cheaper than Brighton, $720,000 cheaper than Glenelg, and less than half the average price in Somerton Park.

Hallet Cove is a little quieter than other beachside suburbs in Adelaide, and also a little more affordable. Image: realestate.com.au/sold

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It may lack the traditional cafe strip of some of its neighbors but makes up for this with clifftop walks and is served by two train stations.