Suburbs within 10km of the CBD that are still cheaper now than they were last year
Australia has some of the most expensive real estate in the world, and wherever you look, headlines boast price increases seemingly everywhere.
Property prices across the country, broadly speaking, are rising. Some suburbs, like Glenelg North in Adelaide and Noosa Heads on the Sunshine Coast, have even seen prices rise by more than 30 per cent in the past 12 months.
But that does not mean property prices are rising everywhere. Even during a period of recovery, the trajectory of growth is nuanced according to local markets. If you dig a little deeper, you’ll also find plenty of suburbs that have seen prices fall over the past year.
“All suburbs don’t move at the same time – they regress slowly through the property price cycle and get that ripple effect,” says Domain chief of research and economics Nicola Powell.
Powell says we’re seeing an opening for people to have the confidence to enter the market.
“While we’ve got a housing recovery, there is still opportunity out there to nab that perceived bargain,” she says. “We still have many suburbs where prices are actually lower than this time last year.”
Analysis of the latest Domain House Price Report reveals several suburbs within 10 kilometres of major city centres where prices are yet to recover from the downturn, creating significant buying opportunities.
However, Powell warns that, while the median price in a suburb may have gone down, so has buyers’ borrowing power, and it’s essential to understand what you can afford to buy beforehand.
In Sydney, property prices in the Inner West fell by more than 8 per cent, but are now showing early signs of recovery.
| State | Suburb | Region | Median | Annual change | Distance to CBD (km) |
| NSW | Redfern | City and East | $1,580,000 | -16.8% | 2.7 |
| NSW | Annandale | Inner West | $1,975,000 | -16.0% | 3.7 |
| NSW | Alexandria | Inner West | $1,732,500 | -14.5% | 4.8 |
| NSW | Earlwood | Inner West | $1,715,000 | -11.6% | 9.7 |
| NSW | Camperdown | Inner West | $1,720,000 | -10.6% | 3.3 |
| NSW | Marrickville | Inner West | $1,785,000 | -9.6% | 6.8 |
| NSW | Leichhardt | Inner West | $1,692,500 | -9.6% | 5.2 |
| NSW | Arncliffe | South | $1,425,000 | -8.7% | 9.7 |
| NSW | Newtown | Inner West | $1,625,000 | -8.2% | 4.3 |
| NSW | Botany | City and East | $1,587,500 | -6.6% | 8.8 |
In the past year the median house price dropped 8.2 per cent in the Inner West suburb of Newtown.
Andrew Fanos of First National Real Estate Newtown says that the downturn in prices was due to lack of confidence from sellers and buyers.
“I think most sellers were holding back, waiting to see what interest rates will do in the hope that stopped increasing,” he says. “Now confidence is returning and has coincided with interest rates stabilising.”
Fanos says that there are more people selling or considering selling and expects that there’ll be more listings available through the spring season.
“Now is a good time to buy,” he says. “If you want to buy a property and it’s within your price range you should buy.”
Sydney isn’t the only capital city with pockets of yet-recovered suburbs.
Peppered around Melbourne’s CBD are places like St Kilda ( down 15.8 per cent), where properties are more affordable now than last year.
St Kilda agent David Seeber of Buxton Real Estate says St Kilda is more desirable now than it has ever been.
| State | Suburb | Region | Median | Annual change | Distance to CBD (km) |
| VIC | Flemington | West | $1,023,750 | -22.7% | 6.2 |
| VIC | St Kilda | Inner Urban | $1,440,000 | -15.8% | 4.3 |
| VIC | Carlton | Inner Urban | $1,285,000 | -13.9% | 2.7 |
| VIC | Kensington | West | $1,040,000 | -13.2% | 5.1 |
| VIC | Yarraville | West | $1,075,000 | -12.6% | 7.9 |
| VIC | Ivanhoe | North East | $1,499,500 | -12.2% | 8.9 |
| VIC | Preston | North East | $1,050,000 | -11.0% | 9.8 |
| VIC | Windsor | Inner Urban | $1,475,000 | -10.6% | 3.7 |
| VIC | Collingwood | Inner Urban | $1,167,000 | -10.4% | 2.9 |
| VIC | Footscray | West | $870,000 | -10.1% | 7.1 |
| VIC | Coburg | North | $1,090,000 | -9.2% | 8.9 |
| VIC | Richmond | Inner Urban | $1,310,000 | -9.0% | 2.7 |
| VIC | Pascoe Vale South | North | $1,100,000 | -8.7% | 9.5 |
| VIC | West Footscray | West | $880,000 | -7.9% | 9.2 |
| VIC | Fitzroy North | Inner Urban | $1,480,000 | -7.6% | 4.7 |
| VIC | Abbotsford | Inner Urban | $1,220,000 | -7.6% | 3.3 |
| VIC | Maribyrnong | West | $955,000 | -6.8% | 9.3 |
| VIC | Thornbury | North East | $1,300,000 | -6.5% | 8.0 |
| VIC | Brunswick West | North | $1,015,000 | -5.7% | 7.3 |
| VIC | Seddon | West | $1,100,000 | -5.6% | 7.3 |
| VIC | Moonee Ponds | West | $1,420,000 | -5.5% | 7.9 |
During the property peak of 2021, St Kilda prices boomed as people decided they wanted to live near a beach and the CBD, Seeber says. However, in the past 12 to 18 months, values have dropped because first-home buyers lost confidence and became less willing to enter the market.
Similar to other markets across Australia, buyer sentiment here changed due to the Reserve Bank’s cash rate hikes, which causing people to be uncertain of their financial stability in the foreseeable future.
Seeber says that’s changed now. “There is a lot more confidence, especially in the first-home buyer market, that we are very close to the top of our rate cycle, and now there’s more stability of what they are able to afford,” he says.
“Plus, St Kilda is more affordable now than it was 18 to 24 months ago when we were in peak market.”
This story isn’t unique to St Kilda. Several suburbs that felt the brunt of the 2022 property downturn are still far from their previous price peaks – a definite win for potential buyers.
Powell says that, despite the quarter-to-quarter growth recorded this year, the median house price in many suburbs is still lower year-on-year, creating opportunities for potential buyers in areas they couldn’t afford during the property boom.
In the Sunshine State, Brisbane suburbs like East Brisbane saw a price drop of 13.5 per cent, and Stafford Heights recorded an 8.6 per cent decrease.
| State | Suburb | Region | Median | Annual change | Distance to CBD (km) |
| QLD | Graceville | Brisbane West | $1,205,000 | -16.9% | 7.1 |
| QLD | East Brisbane | Brisbane East | $1,230,000 | -13.5% | 2.6 |
| QLD | Greenslopes | Brisbane West | $1,113,000 | -10.5% | 4.9 |
| QLD | Stafford Heights | Brisbane North | $885,000 | -8.6% | 8.2 |
| QLD | Annerley | Brisbane West | $1,070,000 | -8.0% | 4.8 |
| QLD | Chermside West | Brisbane North | $842,500 | -7.4% | 9.6 |
| QLD | Stafford | Brisbane North | $907,500 | -6.8% | 6.8 |
| QLD | Carindale | Brisbane East | $1,265,000 | -6.3% | 9.8 |
| QLD | Alderley | Brisbane North | $1,200,000 | -6.3% | 5.4 |
| QLD | Cannon Hill | Brisbane East | $1,137,000 | -5.3% | 6.9 |
| QLD | Carina | Brisbane East | $901,000 | -5.2% | 7.5 |
| QLD | Holland Park | Brisbane West | $1,100,000 | -5.1% | 7.0 |
Property prices peaked 18 months ago but are now more affordable, says Anton Silaen of Ray White Rochedale.
He says older properties in areas like Stafford Heights and East Brisbane are selling for lower prices because they need renovations. Despite the work needed, they are liveable, with the perk of being close to the CBD.
“It really is a great opportunity,” Silaen says. “[Stafford Heights] is going through a lot of changes, making it more desirable. I think if you buy and do a bit of work [renovating] in a couple of years, you can reap the benefits.”
Unlike other capital cities, Adelaide didn’t experience a year-on-year downturn in price; instead, it reached new highs. However, there were several exceptions where prices dropped, including Norwood (16.5 per cent) and Parkside (16 per cent).
| State | Suburb | Region | Median | Annual change | Distance to CBD (km) |
| SA | Norwood | Adelaide Metro East | $960,000 | -16.5% | 2.9 |
| SA | Parkside | Adelaide Metro East | $970,000 | -16.0% | 2.4 |
| SA | North Plympton | Adelaide Metro West | $618,000 | -13.6% | 5.5 |
| SA | Beaumont | Adelaide Metro East | $1,470,000 | -10.9% | 5.8 |
| SA | Unley | Adelaide Metro East | $1,200,000 | -6.3% | 2.2 |
Rosalind Neale of Neale Realty says that inner-Adelaide suburbs like Norwood and Parkside are “more affordable than before, making them a good investment compared to a year ago”.
“It has a great variety of properties available for all types,” she says. “Everything is within walking distance, making it very popular among the retirees and the young people, and there is a good assortment of units, townhouses and luxury homes.”
Neale says she’s seen an increase in the number of properties entering the market in the last two months, making it a perfect time to buy for those who regretted not entering the Norwood and Parkside market sooner.
“I don’t think the area will continue going up, especially once we have a lot more property on the market with more competition,” she says.
Perth also avoided a dramatic downturn in the past year, and property prices grew steadily. However, suburbs like Ascot and East Perth recorded significant drops in their median price.
| State | Suburb | Region | Median | Annual change | Distance to CBD (km) |
| WA | Ardross | South West | $1,001,250 | -8.1% | 8.4 |
| WA | Ascot | South East | $587,500 | -21.9% | 7.0 |
| WA | Maylands | North | $500,000 | -11.5% | 4.3 |
| WA | East Perth | City | $484,000 | -13.6% | 1.8 |
| WA | Highgate | City | $475,000 | -5.5% | 1.9 |
| WA | Osborne Park | North | $375,000 | -9.4% | 6.7 |
The median house price in Ascot fell by 21.9 per cent, which Devon Kelly of Laurie Kelly Real Estate attributes to fewer high-end homes entering the market and the increase of available properties.
“[Ascot] is very patchy and a bit hard to put your finger on because you’ve got a very diverse area of property,” he says.
Kelly says while Ascot doesn’t see many first-time buyers, it is popular with retirees and people looking for a second home, with homes ranging from $690,000 to $1 million.
“Ascot is a great opportunity to buy, especially with the land selling for property development,” he says.
“[Houses] are more affordable, especially with more [property] coming on now after being tightly held on to.”
He says buyers are once again experiencing “FOMO”, or the fear of missing out, and it’s driven interest, especially since there is a choice of property types for anyone looking to live closer to the bay, the river or the horse track.
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