The cost of housing close to the centre of capital cities is continuing to climb due to the inherent shortage of land, high buyer demand and abundance of amenity in these regions which is resulting in buyers paying a premium in order to secure a home.
It is somewhat unfortunate, however, the liveability of an Australian capital city generally increases substantially as you move closer to the city centre. The reason being that the provision of roads and public transport are better, there is more local social and retail amenity and emergency services and hospitals are more readily available. Furthermore, the better schools are often also located around the inner city suburbs. As a result, demand for housing in these areas is typically much higher resulting in the cost also being higher.
This week we highlight the 5 suburbs in each capital city which have the most affordable median value and are located within 10 kilometres of the CBD.
Top 5 suburbs with the lowest median house & unit value within 10km of the CBD
The point that is immediately noticeable from the table provided with this release is how expensive the median value is for houses within the suburbs listed in Sydney. Turrella is the most affordable suburb listed in Sydney with a median house value of $839,676 which is significantly higher than the most expensive median value listed across all other capital cities. It is a similar story for Sydney units although the gap isn’t as large compared to the other capital cities as it is for houses.
Sydney – all of the suburbs with the most affordable median house value are located south of the city close to the airport. For units, it is a bit more varied with suburbs south, east and west of the city.
Melbourne – the list for houses are scattered across the city however, none are located to the south. Again units are a bit more varied and the locations are scattered around the inner city.
Brisbane – the suburbs for houses listed are typically south, the one exception is Keperra north-west of the city. For units, three suburbs are located south and two located to the north.
Adelaide – all of the suburbs for houses listed are located to the north of the city where values are typically much lower. For units, all of the suburbs except for Brooklyn Park are located to the north of the city.
Perth – all of the suburbs listed for houses are situated north of the city, predictably all away from the water. Similarly for units all are located north of the river.
Hobart – housing close to Hobart is much more affordable than in all other capital cities. All of the most affordable suburbs for houses listed are on the eastern bank of the river except for Goodwood. For units most of the suburbs listed are situated to the north of the CBD.
Darwin – all of the most affordable suburbs for houses listed are in a similar location just north of the airport. It is a similar story for units with all of the most affordable in a similar area north of the city.
Canberra – all of the most affordable suburbs for houses are situated in the Belconnen district of the city. For units all suburbs listed except for Downer are either in the Woden Valley or Belconnen districts.
In all cities, unit stock offers a much more affordable entry point into the inner city areas, given this it is no wonder that unit construction in inner city areas is booming across most cities. In the more expensive cities such as: Sydney, Melbourne, Darwin and Canberra it has become increasingly difficult over recent years to secure houses close to the city at relatively affordable prices. This is a trend that we anticipate will continue over the coming years given that buyers are willing to pay a premium for the lifestyle benefits associated with living closer to the city centre.
Source:CoreLogic, RPData
