It’s still possible to buy a house under $1 million within 5km of the city

Despite the record increase in house prices across the country in recent years, it’s still possible to find homes under $1 million within 5km of the city.

According to Domain, if you’re prepared to look in Perth, Adelaide, Darwin and Hobart, there are still affordable options for house hunters.

There are 25 suburbs in Australia with a median house price under $1 million led by West Perth, which has a median house price of $485,000.

Other WA suburbs that offer affordable houses include, Highgate, which is just 1.9 kilometres from Perth’s city centre, with a median of $496,500, which are all within three kilometres of the city centre.

Rental yields in these areas of Perth are strong, with Domain showing the median rental yield in East Perth is 6.11 per cent, 6.07 per cent in Perth City, 5.98 per cent in West Perth and 5.47 per cent in Highgate.

Real estate Agent at The Agency, Paul Middleton said Perth had a lot to offer compared to Sydney and Melbourne.

“We’re a more attractive proposition than the eastern states,” Mr Middleton told Domain.

Mr Middleton said the type of house you can buy in Perth’s CBD fringe is more likely to be pre-war and on a small block of land.

“Yes, Sydney is a magnificent city, but you know your house will cost you twice as much to live further away from the city,” he said.

Meanwhile, there are also a number of suburbs in Adelaide that offer attractive prices close to the CBD.

Suburbs such as North Adelaide (median price $960,000), Mile End (median price $795,000) and Richmond (median price $635,000) are all less than four kilometres from the city centre.

Real Estate Agent at Harcourts Tagni, Scott Ellis said Adelaide represented incredible value compared to Sydney.

“In other cities you might not even get a one-bed unit in a location this close to the city, here in Adelaide we are literally 50 metres to a train line, which has a beautiful walk and bike path on it, you can walk to four different restaurants 150 metres away, or walk to the entertainment centre, or hop on a tram and get to the beach,” Mr Eliis told Domain.

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Rowan Crosby

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