Australia’s housing price falls have seen the nation’s affordability return to 2016 levels.
But despite the well-documented housing price decline of many markets across the nation, Sydney is still Australia’s least affordable market to buy into, followed closely by Melbourne in second place.
Sydney’s dwelling values have recorded a 14.9 per cent decline since peaking, while Melbourne an 11.1 per cent drop.
Taking in suburbs located in urban areas with median house prices between $400,000 and $600,000, research group Select Residential Property identified 15 affordable suburbs in strengthening property markets, with prospects of potential price growth across the next three years.
|State||Urban Area||Locality||Median House Price||Better off in three years|
|NSW||Gold Coast - Tweed Heads||Bilambil Heights||$559,164||$105,787|
|NSW||Newcastle - Maitland||Largs||$555,042||$60,986|
|NSW||Newcastle - Maitland||Tenambit||$442,552||$50,089|
Select Residential Property director of research Jeremy Sheppard said the top five locations were found in Canberra, the Gold Coast, Brisbane and Hobart where investors could be better off by more than $120,000 in three years, according to the research.
Sheppard said the top and bottom suburbs identified by the analysis, takes into consideration selling and buying costs.
“The Canberra-Queanbeyan region has taken out the first and second places for forecast price growth, partly due to affordable house prices close to our nation’s capital,” Sheppard said.
“Both Charnwood and Karabar are near Canberra, which means housing is in strong demand from public servants.”
South-east Queensland and northern NSW is home to number three and four on the list, which Sheppard says is due to housing affordability, location, and access to major employment nodes.
“Bilambil Heights is in the Tweed Heads region of the Gold Coast. Not only does the suburb boast water views, Surfers Paradise is also only about 30-minutes’ drive away,” he said.
The research also identified areas where owners might be better off selling up.
|State||Urban Area||Locality||Median House Price|
“The research showed that vainly holding on to properties in some of these locations could see your property wealth erode every year,” Sheppard said.
Low growth forecasts were common in a number of Darwin and Perth suburbs.
Darwin's property market peaked in late 2010, and along with Perth's market has been suffering from the end of the mining boom.