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Falling prices in some suburbs make it easier to buy in Sydney and Melbourne

With interest rates rising, buying conditions remain tough however, there are still locations where people can find both affordable and liveable locations, according to a new report.

According to PRD’s Affordable & Liveable Property Guide, Sydney and Melbourne are currently the friendliest capital cities for buyers who have been waiting to enter the market.

Sydney and Melbourne have a higher percentage of suburbs that experienced a median property price decline in the past 12 months, making it easier for buyers to get into the market, the report said.

While choosing an affordable and liveable suburb for houses in Brisbane and the Gold Coast is extremely challenging, due to the smaller pool of suburbs that met all the criteria.

The report looked for suburbs that were 20km from the CBD, affordable based on median loan size required to purchase, property trend data, development potential and liveable based on factors like low crime rates and available amenities.

According to PRD, Perth and Hobart were the hardest cities to find an affordable and liveable suburb, in terms of balancing all of the methodology criteria. 

While Melbourne and Adelaide were the easiest, due to the existing built-in liveability factors found in Melbourne and the larger pool of suburbs under the Metro median price in Adelaide.

“For houses, Hobart has become the most affordable capital city for liveability,” PRD said.

“Most of the suburbs surrounding Hobart metro had a negative median price growth, due to cash rate hikes. 

“Because of this, we were able to find a chosen affordable and liveable suburbs with a median house price that is 23 per cent lower than the Tasmania state average home loan.”

PRD said Sydney houses were still the most expensive, with buyers needing to add an 80 per cent premium on top of the NSW average home loan. 

This is followed by the Gold Coast and Brisbane; areas which used to be known for their affordability. 

For units, Sydney proves to be the most affordable city for liveability, followed by Perth. 

Like Hobart, there was a trend of more suburbs with negative price growth, which benefits first-home buyers. 

“We were able to find chosen affordable and liveable suburbs that is 42 per cent lower than the NSW state average home loan and 40 per cent lower than the Western Australia state average home loan,” PRD said.

“Gold Coast units is the most expensive city for liveability, its residents being the only one to have to pay a premium, of 10 per cent, above the Queensland state average home loan.”

Source: PRD

The most affordable and liveable suburbs for Sydney were Villawood, Auburn and Bankstown for houses and North Rocks, Croydon Park and Kogarah for units.

In Melbourne, Caroline Springs and Fawkner were best for houses and Epping and Ripponlea for units.

While in Brisbane, Doolandella, Murrumba Downs and Strathpine were the most affordable house markets.

In Adelaide, Salisbury North, Osborne and Modbury were most appealing, while in Perth, Stratton, Kenwick and Queenspark came out on top.

In Hobart, Warrane, Berriedale and Glenorchy were the most affordable.

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Rowan Crosby

Rowan Crosby is a freelance journalist specialising in finance and real estate.