Here's How Close You Can Get to the CBD in a Unit for $500,000

If you’re in the market for a unit, how close can you get to the CBD and its lifestyle benefits for just $500,000?

The Urban Developer recently covered the five suburbs in each capital city closest to the CBD where the median house value remains under $500,000.

Property research group Corelogic found that buyers of houses with $500,000 to spend found it challenging to live close to the city, with the median value of capital city suburbs reaching far beyond the half-a-million-dollar mark.

Corelogic has now released research on how far a $500,000 budget will get you for a unit.

The results highlight that housing options under $500,000 are available much closer to the CBD for units compared with houses.

Related reading: Buying a House is Finally Getting More Affordable

“While most Australians still aspire to own a house, the cost of well-located houses, particularly in the larger capital cities, is restrictive,” Corelogic’s research analyst Cameron Kusher said.

“As a result, an increasing number of buyers are choosing to purchase more affordable units which offer the ability for owners to live in more desirable suburbs at a lower price point than purchasing a house.

In Sydney, the research found that Lakemba – just over 12 kilometres in a straight-line distance from the CBD – is the closest suburb with a median unit value of under $500,000.

Sydney, as might be expected, had unit values below $500,000 typically much further away from the city centre.

Related reading: Hobart the Least Affordable City for Renters

In contrast, the Melbourne CBD has a median unit value less than $500,000 as do most of the suburbs surrounding the CBD. In comparison, the suburb closest in the detached housing market with a median value of under $500,000 was 16 kilometres away.

Brisbane offers a much more affordable alternative, particularly for units, with Brisbane’s CBD and most of Greater Brisbane, including inner-city suburbs such as South Brisbane and Kangaroo Point, having a median unit value below $500,000.

Adelaide units are much more affordable than houses across the city. In fact, the research found there are only five suburbs in which median unit values are over $500,000.

In Perth, the CBD itself and most surrounding suburbs have a median unit price of under $500,000, though there a number of suburbs particularly along the Swan River and on the coast in some of the more exclusive enclaves where this is not true.

In Hobart, Darwin and Canberra, it is possible to find units under $500,000 either in the CBD or in nearby suburbs close to the city.