As office workers return to their pre-pandemic lives and head back to CBDs, there are still a number of affordable inner-city suburbs for homebuyers looking to move back to the city, according to a new report.
The Domain House Price Report found that each city has a number of options for homebuyers within 10km of the CBD, with Sydney and Melbourne predominately featuring units, while affordable houses are still available in the smaller capital cities.
Domain Chief of Research and Economics Dr Nicola Powell said rising interest rates and inflation has meant city living is out of reach for some Australians, but not all.
She expects people to continue to head back to the cities looking for affordable properties.
“There are still some affordable options for buyers close to the city, especially if buyers are willing to be flexible on their inner-city location and property type,” Dr Powell said.
In Sydney, the cheapest suburb that falls within 10km of the harbour city’s centre is Campsie, where the median house price is $1.35 million, along with Arncliffe.
For units, Canterbury offers the most affordable option with a median unit price of $650,000.
For buyers looking closer, St Peters in the Inner West offers the most valuable house option at 6km from the CBD, however the suburb’s median price sits well above the city’s median house price of $1.46 million.
Units in Eastlakes offer a more affordable option under $700,000 and are only 7km from the CBD, along with Hillsdale.
In Melbourne, median prices are still lower than in Sydney, with buyers looking in the west and north can take advantage of the region’s affordable prices.
Maidstone in the city’s west offered the most affordable price at 10km from the CBD, with a median house price of $829,000, as well as West Footscray and Coburg North, which both have a median house price under $1 million.
Travancore was the most affordable unit market in Melbourne and is just 6km from the CBD. Carlton and Flemington are other affordable options.
Spring Hill is the cheapest suburb in Greater Brisbane within 10km of the CBD, however, those looking for a house should consider Brisbane East’s Hemmant, Tingalpa and Keperra, which are under 10km from the CBD.
Only Hermmant offers an option that’s below Brisbane’s median house price of $811,000. Houses in Hemmant have a median price of $770,500.
In Perth, Cannington and Westminster have not only the city’s cheapest houses but they are also almost $250,000 below Perth’s median house price of $645,000.
Osborne Park in the city’s north has a median unit price of $219,000, even though it’s just 7km to the city centre and roughly the same distance from Scarborough Beach.
In Adelaide, buyers can expect to pay over $500,000 for a house and between $280,000 and $340,000 for a unit close to the CBD.
Adelaide’s Metro West provides the most choice for buyers, with St Clair and Woodville representing the best value.
Canberra remains an expensive city for buyers, however, there are still affordable options with Higgens in the lush region of Belconnen and Bruce offering the best option for units.
Meanwhile, in Darwin, the cheapest house to buy is in Berrimah where the suburb median is $235,000, which is down 22 per cent annually.
For unit buyers, Parap offers good public transport, a selection of local pubs and restaurants and the Parap Village Markets on weekends.
Domain Property Editor Alice Stolz said every buyer will have a list of must-haves when deciding which suburb to buy in.
“One of my top pieces of advice for buyers is to visit the suburbs that fit within your budget,” Ms Stolz said.
“If your budget isn’t matching up, don’t be put off by slightly expanding your search to the outer city bubble.
“In the larger capitals, there are still plenty of affordable options within the 10-20km mark ,with strong links to quick public transport.”