Housing affordability has been a hot topic of discussion in 2011. Even though median price growth is slowing nationally, purchasing a home is still difficult for many and with the prospect of further interest rate rises the great Australian dream may seem impossible for many. Or is it?
According to the real estate institutes across Australia and properyDATA.com.au, there are still many affordable places to buy; you just need to know where to look. We interviewed a range of experts from the real estate institutes to compile a list of some of the most affordable places to buy.
ADELAIDE & SURROUNDING AREAS
According to Petra Sprekos, General Manager of propertyDATA.com.au, the most affordable suburbs to buy are to the north of Adelaide. Mrs. Sprekos advised “Based on the average median house price for Q4 2010 Elizabeth Downs, Elizabeth North, Elizabeth Park and Davoren Park, represent the most affordable places to buy with medians at or below $230,000.”
So why are these suburbs the most affordable places to buy? Mrs. Sprekos advised “These suburbs are typically known to be populated by those from lower socio-economic backgrounds. However we are seeing more families and even investors buying in these because prices remain affordable these suburbs have strong growth potential for the years ahead.”
BRISBANE & SURROUNDING AREAS
According to Pamela Bennett, chairman of the Real Estate Institute of Queensland (REIQ), the majority of Brisbane’s most affordable areas are clustered within 18 to 20 kilometres south west of the city. Ms Bennett states “Based on median house price data from Q4 2010; Inala, Acacia Ridge, Darra, and Durack are still very affordable places to buy with median house prices all below $375,000.
“As these suburbs are still relatively close to the city it does beg the question of why this cluster of suburbs is still reasonably affordable.” Ms Bennett explains “These areas provide older weatherboard and post-war homes as well as a number of housing commission properties ripe for renovation. Many of these areas have undergone significant urban renewal over the past few years which augur well for their growth and development into the future.”
DARWIN & SURROUNDING AREAS
According to Quentin Kilian, CEO of the Real Institute of Northern Territory (REINT), the most affordable suburbs are those in the outer south eastern parts of Darwin – around the Palmerston area. Mr Kilian said “Median house price data from Q4 2010 shows Moulden & Gray are some of the most affordable places to buy with the median house price well below $450,000. Driver also is still affordable with a median price of $461,250. Eastern suburbs including Kamara and Malak are also still affordable with the median house price still below the $500,000 mark.”
Mr Kilian elaborated on the affordability of these suburbs by saying “These particular suburbs are still well below the average median house price for the greater Darwin area (of $559,000) and as they are all still within 25 kilometres of the CBD, they provide good access to amenities at a more affordable price.”
HOBART & SURROUNDING AREAS
According to Martin Harris, CEO of the Real Estate Institute of Tasmania (REIT), some of the most affordable places to buy are areas which were traditionally known as public housing areas. Mr. Harris states “Median house prices for Q4 2010 indicate that Bridgewater, Rokeby and Ravenswood are some of the most affordable places to buy a house with median house prices all below $204,000.”
Mr. Harris went on to say “These areas tend to be lower socio-economic suburbs however they are mostly located in areas which are close to major centres and services thus have good potential growth for the future.”
MELBOURNE & SURROUNDING AREAS
According to Enzo Raimondo, CEO of the Real Estate Institute of Victoria (REIV), many of the most affordable places to buy a house in 2011 are located in the outer west of Melbourne. Mr. Raimondo said “Based on the REIV’s median price data for 2010 Melton South, Melton, Wyndham Vale, Kurunjang and Frankston are still very affordable places to buy a house with the median house price for all of these suburbs below $300,000.”
So why is this the case? Mr. Raimondo stated “As has always been the case, Melbourne buyers will pay more to live close to the city thus for those finding it difficult to get onto the property ladder buying on the city’s outskirts can be a good alternative places to consider.”
PERTH & SURROUNDING AREAS
According to Alan Bourke, President of the Real Estate Institute of Western Australia (REIWA), the more affordable places to buy are those which; do not lie in within 10kms of the CBD or are not situated on the coast or close to the river. Mr. Bourke said “Based on Q4 2010 median house price data Medina, Brookdale, Parmelia, Armadale, Camillo, Leda, Coolongup, Maddington, Orelia and Gosnells are still very affordable suburbs with the median house prices all below $320,000.”
But what can these suburbs offer those looking to buy in an affordable area? Mr Bourke advised “Local infrastructure in some outer suburbs is reasonable and access to the modern train line has proven to be a more convenient and efficient method of transportation in comparison to a car. Urban revitalization in recent years has also seen more of these once tired and overlooked areas come back to life creating friendly neighbourhoods for home buyers to consider.”
SYDNEY & SURROUNDING SUBURBS
According to Tim McKibbin, CEO of the Real Estate Institute of New South Wales (REINSW), some of the most affordable areas are located in and around Blacktown. Mr. McKibbin advised “On the basis of REINSW median house price data for Q4 2010, Lethbridge Park, Tregear, Whalan, Blackett, North St Marys, Hebersham and Macquarie Fields as are all still affordable suburbs with the median house price for all of these areas below $285,000.”
Mr. McKibbin commented that “Sydney buyers will pay more to live close to the city, particularly within 10 kilometres of the CBD therefore suburbs on the outskirts on the city – particularly those surrounding the Blacktown area are proving to be affordable suburbs.”