After two years of record price growth, there are still opportunities to find good value properties for under $700,000 around the country, according to the latest Herron Todd White (HTW) Month in Review.
In the July report, National Director, Group Risk and Compliance, Kevin Brogan said what kind of home $700,000 would get you varied widely according to location.
“In some locations, $700,000 will buy only a modest dwelling, possibly a small unit, while in others it can acquire a good-size family home,” Mr Brogan said.
“At this price point you can at least buy something in most locations across the country, making it a great way to compare and contrast Australia’s diverse markets.”
According to HTW Director, Shaun Thomas options are limited under $700,000 in Sydney.
“With the amount of price growth experienced in Sydney during 2021, the number of properties available to those with a budget of $700,000 has become significantly more limited, particularly in the inner and middle rings of the city,” Mr Thomas said.
“With the median house price twice that of a budget limited to $700,000, it is going to mean that in many locations you are limited to units or maybe townhouses.
“However there are still some parts of Sydney where you can find detached housing within this budget.”
Mr Thomas said south-west Sydney may be one of the few remaining areas within the Sydney basin to purchased a sub $700,000 home.
Locations, areas such as Busby, Miller, Sadlier, Ashcroft and Cartwright with the Liverpool LGA are established areas that are gradually gentrifying.
“If location is flexible, buyers have the opportunity to drive their dollar further in fringe suburbs of the Lower North Shore, such as Gladesville,” he said.
For unit buyers, options are more plentiful with an Art Deco studio across the road from Bondi Beach selling in June for $605,000 – although it was only 24sq m.
HTW Director Perron King said $700,000 will go a long way for most investors and quite literally open the doors to an array of property types including detached houses, townhouses and apartments.
“This is certainly the case on Melbourne’s urban fringe where development of new estates and infrastructure continues at a rapid rate and affordable options can be found,” Mr King said.
“However, in other blue-chip locations closer to the CBD, a $700,000 budget might not even secure a two-bedroom apartment.
“In areas such as Pakenham and Clyde, the average house price sits at $625,000 and $655,000 respectively.
“Whilst these two suburbs are approximately 50km from the CBD.”
Mr King said detached housing would become more affordable towards the outer east in areas such as the Yarra Valley, where you can cash in on a two-bedroom house for around $655,000.
“Moving closer towards the CBD, it becomes increasingly difficult to find detached housing at this price, which can open up investors to other opportunities such as units,” he said.
Other options include Kalkallo and Donnybrook, while investing in the western suburbs of Melbourne with $700,000 opens the door to an array of different types of property.
HTW Director David Notley said $700,000 purchases far less in Brisbane than it would have three years ago.
“Options are limited at this figure close to the CBD,” Mr Notley said.
“You really are considering units and townhouses and a balanced offset between size, age, condition, position and outlook must be achieved.”
Mr Notely said further away from the city, modern to semi-modern townhouses from Everton Park through to Alderley were within this price bracket.
“You’ll find older dwellings on 400sq m in Coopers Plains, Moorooka, Salisbury and Acacia Ridge within the budget,” he said.
“Our top picks for investing would include houses in Coopers Plains and Acacia Ridge.
“In the mid-ring west, $700,000 would secure a modern three-bed townhouse in Sherwood or Corinda.
“More western locales worthy of attention are Jamboree Heights, Sumner, Riverhills and Seventeen Mile Rocks.”
Depending on buyer motivation, $700,000 could buy the astute purchaser the perfect owner-occupier home or investment property according to HTW Property Valuer Nick Smerdon.
“Higher density stock such as strata units and mid to late century townhouses are most prevalent at this price point in the inner ring,” Mr Smerdon said.
“In the middle ring, traditional detached dwellings and modern infill development become available at the $700,000 price point.
“The market of the outer north represents the lowest price point within metropolitan Adelaide.
“Properties of this nature are typical of the more recent high-density subdivisions in the suburbs of Blakeview, Munno Para, Angle Vale and Virginia.”
HTW Director Chris Hinchliffe said Mandurah was currently proving to be an investment hotspot where investors could find attractive options at very affordable prices.
“One investment opportunity proving to be a popular choice is the purchase of large 1000sq m development sites zoned R60,” Mr Hinchliffe said.
“Other options in the Mandurah area include Halls Head, a relatively prime location.
“Closer to Perth, Willagee is a suburb growing in popularity due to its relative affordability given its location, just a 20-minute drive from Perth’s CBD and 10 minutes from Fremantle.
“Our valuers are looking at suburbs such as Leeming and Kardinya where you can still find decent sized family homes.
“Further north, Dianella is one of the largest suburbs in the Perth metro region with a huge span north to south.”
HTW Valuer Cameron McDonell said there were a number of locations across Darwin that represented good value.
“If I had $700,000 to spend as an owner-occupier, I would be searching for properties within the inner Darwin suburbs (Ludmilla, Parap, Stuart Park, Bayview, Woolner) and northern beaches suburbs (Nightcliff, Rapid Creek, Coconut Grove),” Mr McDonell said.
“I have confidence that in these locations the underlying land values will face less pressure in a downturn and increase at a faster rate when there is strong demand and strong consumer confidence.”
HTW Assistant Property Valuer Nicole Claughton said there were still locations in Canberra to buy, however, prices had risen sharply.
“The pockets we found were in the north and western sides of Canberra where we were able to identify a couple of houses in the areas of Ngunnawal, Casey, Taylor and Macgregor however they ranged closer to the $700,000 mark with most properties in today’s market going over this at auction and even private treaties,” Ms Claughton said.
“With a lazy $700,000, a townhouse in the Weston Creek region of Canberra looks to be the way to go for capital growth as we can see that year on year it has kept increasing and has been fairly consistent.”