Housing affordability is one of Australia’s most hotly debated topics. It dominates headlines, feeds dinner table discussions and contributes to pressure for aspiring homebuyers. But is it truly as dire as it seems?
While it’s true that soaring property prices, particularly in major cities, create challenges, there is still untapped value in Australia’s housing market.
With some strategy and an open mind, affordable opportunities exist for those willing to look beyond the glittering skylines.
If you’ve been dreaming of owning a home, don’t lose hope. This blog will walk you through key insights, highlight affordable picks across various states, and reveal why the Australian housing market might still hold promise for buyers.
Housing Affordability Acknowledged
Yes, housing affordability is a real challenge. Over the past few decades, property prices have surged, largely due to urbanisation, strong population growth, and limited housing supply in key areas.
CoreLogic research shows that Australian property prices increased by more than 28 percent from 2020 to 2022 alone. For first-time buyers, this has made entering the market feel all but impossible.
But what doesn’t often make the headlines are the opportunities available in smaller cities, regional areas, and suburban fringes. These areas not only promise more bang for your buck but often boast a lifestyle that’s equally, if not more, appealing.
Affordable Property Gems Across Australia
When you shift your gaze from Australia’s tier-one cities to its lesser-known treasures, you’ll find housing with real value. Here’s a closer look at affordable property options state by state.
Victoria
If Melbourne’s property market feels out of reach, consider venturing beyond the city’s buzzing laneways.
Regional towns such as Wyndham City, Wodonga, Wahgunyah, Wangaratta and Lavington provide a refreshing break from the high price tags.
4 Morley Drive, Wahgunyah for example offers 3 bedrooms, 2 bathrooms and car parking for up to 5 cars along with a price tag of $635,000. Wahgunyah sits in the magnificent Murray River region, among beautiful wineries and well-renowned golf courses.
New South Wales
Sydneysiders may struggle to find a home without an astronomical figure but venture outside of Sydney, and the story changes.
Towns like Orange, Batemans Bay and Bathurst as well as rural regions such as Batehaven and Collector are emerging as affordable hubs offering properties with achievable price tags and a lifestyle to match.
Elders Batemans Bay, Director, Rebecca Shepheard said confidence in the local market had returned following the recent national election.
“Add to this recent interest rate drops and buyer enquiry has really started to pick up,” Ms Shepheard explained.
“Everybody seems to think that spring is the way to go when it comes to selling your home but with buyer enquiry the way it is now, there is no better time.”
Ms Shepheard said a prime example of an affordable listing that is on the market in isolation instead of saturation was 4 Bernadette Boulevard, Batehaven, which was currently listed at $799,000.
“This is a brick single level home with proximity to local amenities that is sure to appeal to retirees right through to first home buyers. It is ready to be lived in now with great proximity to local schools. You can pay up to $700,000 for a fibre home is this area so this really represents great value.”
Elders Goulburn and Brookwell Agent, Kia Scott said buyer enquiry and demand was certainly increasing even as we get set for the usually quieter winter period.
She said while affordability was still a challenge for buyers nationwide, correctly pricing properties was of the utmost importance.
“Most sales that are taking place are by properties that are marketed, maintained, and presented efficiently,” Ms Scott explained.
“Nestled on an expansive 4987sqm (approx.) block, the stylish home at 12 O’Sullivan St, Collector, is a prime example of this. Offering a peaceful retreat with stunning views and an exquisitely finished 5 bedroom home at a price point of $1,035,000, you’d be hard pressed to find anything like this closer to major cities.”
Queensland
While Brisbane’s property market is on the rise, there are affordable gems in Queensland’s regional areas.
Towns such as Rockhampton, Ipswich, and Bundaberg are proving to be hotspots for first-home buyers seeking affordable real estate.
Rockhampton and surrounds, in particular, has very accessible properties.
27 Edward St, Duaringa offers 3 bedrooms, 2 bathrooms and a listing price of $465,000.
Duaringa is on the Capricorn Highway, 116 kilometres (72 mi) west of Rockhampton. It is a rural town in the Central Highlands Region and a locality split between the Central Highlands Region and the Aboriginal Shire of Woorabinda in Central Queensland.
Western Australia
White prices are rising, Perth remains one of Australia’s more affordable capitals. But if Perth’s prices are still a stretch, regional WA has even better deals.
Places like Albany and its surrounding towns offer properties under $700,000 supported by natural beauty and growing industries.
31 Kampong Rd, Yakamia positions itself inland from WA’s stunning coastline. It has 4 bedrooms and 2 bathrooms with offers being considered above $599,000.
This incredible region combines affordability with breathtaking views and lifestyle perks like wineries and pristine beaches.
Tasmania
Tasmania often remains off the radar, which is why it’s a gold mine for buyers seeking budget-friendly options.
Tasmania offers an enviable lifestyle, with some of Australia’s best natural attractions and a burgeoning food and wine scene.
Elders Launceston Agent, Louise Gipton said easing interest rates and the general sentiment that further falls are on the way meant the local market was beginning to rebuild.
“We’ve had lots of the feedback from potential buyers in recent weeks that are looking to get in the market or get another asset before interest rates drop even further so the signs in terms of buyer activity are there,” Ms Gipton said.
“Affordability is also still there with properties such as 2/269 Westbury Road, Prospect makes a really good investment with offers over $369,000 being considered and a current rental return of $450 per week making it incredibly attractive.
“We also have 6 Caveside Rd, Mole Creek which is a 4 bedroom house on a significant block of 1,703 sqm (approx.). At asking offers over $475,000 there is great value for money in a property such as this which is in a beautiful, quiet area just 20 minutes from Deloraine.”
South Australia
Adelaide continues to be a hidden gem among Australia’s capital cities and its regional areas even more so.
Significant towns such as Mount Gambier and Port Augusta are even more affordable, offering properties below $500,000.
50 Elizabeth St, Mount Gambier for example sits on a peaceful 574 sqm (approx.) block just steps away from the town centre, with shopping, cafes and restaurants, plus schooling and childcare only a short drive away.
Mount Gambier is noteworthy for its affordable costs of living and access to iconic landmarks such as the Blue Lake.
Opportunity Knocks but You Have to Answer
Australia’s housing market may have its challenges, but the notion that homeownership is out of reach is not true for every state and/or region.
By broadening your search and considering less traditional markets, you’ll find a wealth of opportunities waiting to be explored.
Need some help? Contact an Elders Expert in the area you’re interested in here.