Bargains in a booming market: The 40 suburbs with a median house price under $200,000

For those not yet in the property market, the news just keeps getting worse as prices keep going up.

Last week, it was revealed the median price for a house in Australia had soared past $1 million. Prices in capital cities have rocketed to record levels.

Sydney’s median price is now a staggering $1,601,467, Melbourne’s median is $1,101,612, Hobart rose to $752,110 and Canberra – now the second-most expensive city in the nation in which to buy a house – hit $1,178,364, the latest Domain House Price Report showed.

Brisbane’s median house price jumped by 10.7 per cent in the December quarter alone to a record median price of  $792,065, while Adelaide rose by 8.6 per cent to $731,547.

Only Darwin, where the median flatlined at $640,068 and Perth, up 1.8 per cent to $612,348, failed to break records.

But there is life outside the capital cities and there are properties for sale that won’t leave buyers drowning in debt.

The latest data shows there are no less than 40 towns and suburbs where the median price comes in at less than $200,000.

The most affordable places in Australia – Coober Pedy and Peterborough – are both in South Australia and have median house prices of less than $100,000.

Peterborough is about a three-hour drive north of Adelaide and is renowned for its heritage rail trail. The median price for a house there is $98,500.

SOLD - $85,000

148 Moscow St, Peterborough SA 5422

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The outback town of Coober Pedy – often referred to as the opal capital of the world – is far more remote. Not only is it a 16-hour drive from Adelaide, it is renowned for its below-ground dwellings, also called “dugouts”, that were built to escape the heat.

But not every affordable suburb is so far out from a capital city. Manunda, in Queensland’s tropical Cairns, has a median unit price of just $145,000 and is within walking distance of local restaurants, bars, supermarkets and a 10-minute drive from  Cairns Esplanade.

Local Remax agent Mat Foley said Manunda was undergoing a gentrification process, with many properties being purchased by owner-occupiers and renovated.

“Manunda is very affordable at the moment but it has increased in value and is going to increase in value further,” Mr Foley said. “It’s on a delayed trajectory to other markets out there.”

He cited the recent sale of a unit for $260,000, which had sold only 18 months earlier for $175,000.

Houses in Manunda were also affordable, he said. “I’ve just listed a house at 15 McDonald Street for $300,000. That’s for a three-bedroom house. Investing in this area is probably one of the best investments someone could make.”

$198,000

4/21 Douglas Street, Manunda QLD 4870

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Woodridge, part of Greater Brisbane, has a median unit price of just $170,000. Located about 19 kilometres south of the CBD in the local government area of Logan, it features affordable units within walking distance of the local train station.

In NSW, the cheapest place to buy a house is Coonamble (median price $122,500), about 6.5 hours drive north-west of Sydney, followed by Gilgandra (median price $175,000), a four-and-a-half hour drive inland from Newcastle.

Local LJ Hooker agent Patrick Huynh, who sells in Gilgandra and some of its surrounding regions, said the town’s affordability made it appealing for buyers.

“Gilgandra has a population of about 3000 people, two hardware stores, an IGA, specialty shops … and it’s about an hour’s drive from Dubbo, which is a massive town,” he said.

“Prices have gone up; not by as much as the capital cities of course, but they are going up. There’s that ripple effect.

“We’ve had more interest in the past three months in particular. I had a property on the market for a good three months, listed for $99,000, and just recently sold it for $95,000 to a cash buyer.”

SOLD - $90,000

57 Myrtle Street, Gilgandra NSW 2827

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One of the cheapest towns in Victoria is Casterton (median price $192,000), which is located about a two-hour drive north-west of Warrnambool, the popular seaside town located along the Great Ocean Road. House prices in Warrnambool, for comparison, rose by 22 per cent last year to a median of $500,000.

SOLD - $375,000

16 Robertson Street, Casterton VIC 3311

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