Booming yet affordable: The sub-$750k suburbs where prices have jumped most

PropTrack data has revealed the budget-friendly capital city suburbs — all with median property values under $750,000 — where prices have gone up the most in the past 12 months.

Despite the huge increases over the past year, typical homes in these affordable pockets cost less than Australia’s median home value – which reached a record high last month.

About half the suburbs on the list are priced under $600,000 – a price point that would be attractive to first-home buyers and investors alike.

PropTrack economist Eleanor Creagh said the significant reduction in borrowing capacities as a result of rising interest rates and the deterioration in housing affordability over recent years had pushed buyers to suburbs where homes are cheaper.

“Lower value homes are recording stronger growth than more expensive homes across the combined capital cities,” she said.

“This is a direct contrast to the same time last year when the upper end was driving the recovery.”

The affordable suburbs with the biggest price rises were mostly found in pockets of Perth, Adelaide and Brisbane, with growth rates higher than 30% in some areas.

This surge in values reflects tightness in these markets amid heightened competition, Ms Creagh said.

In Riverview, a suburb of Ipswich, the value of a typical house has increased by almost $127,000 over the past year. This three-bedroom Riverview house recently sold for $540,000. Picture: realestate.com.au/sold

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“The smaller capital city markets, Perth, Adelaide, and Brisbane are likely to maintain their outperformance despite growth slowing as constrained stock levels are intensifying competition amid strong buyer demand.”

Meanwhile, the fastest-growing affordable Sydney suburbs had growth rates in the double digits, while the top-performers in Melbourne, Hobart, Darwin and Canberra had lower growth rates.

Budget-friendly suburbs where prices surged the most

PropTrack data shows that in the top five suburbs in each city with houses and unit median values under $750,000, prices grew faster than the city overall, in some cases by a significant margin.

Most of the high-growth affordable suburbs are located in the outer suburbs of the capitals, although booming suburbs for units could be found a little closer to the CBD.

The data uses PropTrack's automated valuation model (AVM) to determine a suburb's median house or unit value.

Sydney

All of the suburbs in the Greater Sydney region with a median house value under $750,000 are found in the outer west, Blacktown or the Central Coast, reflecting how hard it is to find an affordable house close to the CBD of Australia’s most expensive city.

But of these affordable suburbs, values jumped the most in a small pocket of Blacktown, where despite a 10-12% uplift in prices, a typical home can still be purchased for less than $750,000.

Blackett is one of the most affordable suburbs in Sydney, and house prices there have lifted about 12% over the past year. This Blackett house recently sold for $735,000. Picture: realestate.com.au/sold

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In suburbs like Whalan, Blackett and Emerton, typical house values have climbed by between $70,000 and $80,000 in the past year.

The affordability of the Blacktown region and upgraded infrastructure in the area had drawn more buyers from other parts of Sydney, particularly Parramatta, with increased competition driving prices higher, according to real estate agent Peter Diamantidis of Ray White.

“There’s not really many places under $750,000 you can buy in Sydney, so people are pushed out here.”

He said most buyers in the area were purchasing their first home, and some had plans to convert it to an investment property further down the track.

Meanwhile, unit values have gone up the most in affordable suburbs in the south west like Mount Pritchard, Macquarie Fields and Camden.

Melbourne

The top performing affordable Melbourne suburbs don't have as high annual growth as in some of the other capitals, given Melbourne's price recovery has lagged behind over the past year.

The city's median home value is $10,000 higher than a year ago, but in some suburbs property values have risen up to four times that amount, despite still being priced under $750,000.

A two-bedroom unit in this building in Wantirna South recently sold for $450,000, with values in the suburb rising about 7% in the past year. Picture: realestate.com.au/sold

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The top-performing affordable suburbs for units tended to have higher growth rates, reflecting a trend towards higher growth in unit prices seen across most of the capitals, but particularly in Melbourne.

Brisbane

Affordable suburbs have had the strongest growth in Brisbane by far, with all the top 20 suburbs for house price growth priced well under $750,000.

Suburbs with the highest annual growth are located on the city's western and southern fringes around Ipswich and Logan.

Values in these suburbs have grown by up to 39% over the past year – about three times as fast as Brisbane overall.

This three bedroom house in Kingston, near Logan in Brisbane's south, recently sold for $630,000. House values in Kingston rose by about 30% in the past year, while unit values jumped almost 39%. Picture: realestate.com.au/sold

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Ipswich has the seventh highest price growth of all regions of Australia, while the Logan - Beaudesert region has the ninth highest growth.

Real estate agent Teza Fruzande of McGrath said rising prices had pushed more buyers towards the affordable end of the market.

“At the moment units are on fire and I feel like the enquiry level on houses has dropped a little because everyone’s gone towards units,” he said.

Real estate agent Teza Fruzande said he had already received 20 offers for this two-bedroom unit in a gated complex within about a week of it hitting the market. Picture: realestate.com.au/buy

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While price growth was driven by a lack of homes on the market amid strong demand, Mr Fruzande said more homes would be listed for sale as more owners realise how much the value of their homes have increased.

“When the owners find out there is an extra $100,000 they can get, they're more motivated to go on the market,” he said.

Perth

The Western Australian capital has been Australia's strongest performing property market for the past few years, with affordability a major driving factor.

The vast majority of suburbs in Perth have median values under $750,000, increasing the city's appeal with interstate buyers.

Perth didn't experience a downturn in 2022 when prices fell in most other capitals amid rising interest rates, with its relative affordability, strong population growth off the back of a resurgence in the mining industry, and a shortage of homes driving growth.

Of the city's more affordable suburbs, the strongest growth was found in outer suburbs near the coast in the north and south, as well as suburbs a little closer to the city in the north like Girrawheen and Mirrabooka.

This four-bedroom house in Kelmscott sold for $598,000 earlier this year. A typical home in the suburb has gone up in value by almost $150,000 in the past year. Picture: realestate.com.au/sold

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After exceptionally strong price growth this year, values have jumped up to $150,000 in several of these affordable suburbs — a life-changing figure for some homeowners — yet a typical property still costs less than $600,000.

Real estate agent Alex Dabag of Harcourts described the market in Girrawheen as "very hot" and said the uplift in values in recent years had been "a long time coming" following a period of declining prices.

About 50-60% of buyers purchasing in Girrawheen were investors, according to Mr Dabag, made up of both locals and those purchasing from interstate, with the balance largely made up of first-home buyers.

“There’s a huge demand from eastern state buyers purchasing in this pocket," he said.

“There’s a lot of interest in Girrawheen because it’s a lot more family oriented. It’s quite close to the city and beach at the same time.”

Adelaide

The fastest growing affordable Adelaide suburbs for houses were all found in the city's north, while booming suburbs for units were mostly in the west.

This 2019-built four-bedroom house in Elizabeth Vale recently sold for $622,500. Picture: realestate.com.au/sold

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Adelaide's north has had some of the nation's fastest house price growth since the pandemic, with values up by more than 150% in some areas since the pandemic.

It's also one of the least expensive parts of Adelaide, with median house values still below $400,000 in some suburbs despite jumping by up to 35% over the past year.

In many of the fastest growing suburbs, that increase has pushed up median values by more than $100,000 in just a year.

Hobart

While values in Hobart are down about 2% over the past year, some affordable suburbs have bucked the trend by rising in value, albeit not by a great deal.

Most of the top growth suburbs were located on the outskirts of Hobart, although Geilston Bay and Lindisfarne are only about 5km from the CBD across the River Derwent, while Kingston is about 10km south of the city.

A few suburbs priced under $750,000 on Hobart's eastern shore had price growth that outperformed the city, but most top-growth suburbs were located on the outskirts. Picture: Getty

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Darwin

Prices in Darwin are relatively flat compared to a year ago, rising just 0.16%, but a few suburbs recorded house price increases higher than that, most of which were located in the City of Palmerston about 20km from the Darwin CBD.

This three-bedroom Muirhead house is going to auction with a $630,000 price guide. Picture: realestate.com.au/buy

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While Darwin prices haven't yet recovered from the 2022 downturn and remain 2% below the peak in May 2022, values in the city are tipped to rise over the coming years as increased government investment drives employment growth.

Canberra

Canberra has the second-highest house prices in the country, making it difficult for buyers to find a house priced under $750,000 in the nation's capital.

Only a handful of suburbs have median values under $750,000, and only two of those, Belconnen and Charnwood, had positive price growth in the past year, with Canberra's price recovery lagging other capitals.

This modern two-bedroom ground floor apartment in Lyons recently sold for $550,000. Picture: realestate.com.au/sold

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There are plenty more affordable options for units, with the highest growth suburbs clustered in the south west, including Fisher, Duffy and Lyons.