The cheapest suburbs to buy a house within 10km of Sydney’s CBD

House hunters will find the cheapest median prices within 10 kilometres of Sydney’s CBD in a string of southern and inner west suburbs.

But they may be hard-pressed to find houses for less than the citywide median price of about $1.66 million.

Campsie, 8.5 kilometres from the city centre, is the cheapest with a median of $1.52 million after a 9.7 per cent annual rise, on Domain data.

It’s followed by Bexley, 9.7 kilometres from the CBD, where the median is $1.55 million after a 24 per cent annual rise, then Tempe ($1.6 million), Arncliffe ($1.71 million) and Botany ($1,736,500).

The cheapest units are in Campsie with a median of $630,000, followed by Croydon Park ($645,500) and Enfield ($650,000).

Social analyst and demographer Mark McCrindle said that while prices are still high, there are benefits to buying in those inner-city suburbs.

“People were happy to look to the outer suburbs after the pandemic, but over the last six months there’s been a strong focus on the CBDs as the future,” he said. “They’re the jewel in the crown of our cities.

“Yes, these suburbs within 10 kilometres of the CBD are still expensive, but it’s because of that fact … they’re close to the CBD. But relative to what you get there are some benefits to buying.”

McCrindle said ongoing investment in public transport and infrastructure, along with the return to office, are making those inner-city locales popular.

“Over the last decade our CBDs have been transformed into more of a central lifestyle district with events, ongoing investment in arts and the cafe culture,” he said.

McCrindle said affordability is driving buyers towards different property types.

“We have moved from the idea of the detached home with office to terraces, town homes and even terraces with granny flats,” he said.

“When affordability is the focus those inner-city areas give you good options. People are getting a lot more efficiency out of their homes with the right design to allow for that multi-generational living.”

Domain’s chief of research and economics Dr Nicola Powell said that with high house prices buyers are having to compromise and neighbourhood hop.

“Reduced borrowing capacity due to the cost-of-living crisis, high cash rate and high serviceability buffer, means buyers need to compromise whether it’s their first step on the ladder or upsizing,” she said.

“We’re talking about $1.5 million on average which is still significant. Buyers can’t afford a particular suburb so they are going to the neighbouring one. You see gentrification where people are priced out of certain suburbs.”

Powell said that while Campsie is the most affordable suburb for houses and units within 10 kilometres of the CBD, there aren’t many houses within the suburb that are under Sydney’s overall median of $1,662,448.

“That really showcases the strong need for diverse housing. Some of the more affordable inner-city suburbs have more terrace homes which creates greater affordability,” she said.

“If we saw a greater portion of terrace homes that would help to contain the median.”

Powell said Newtown, 1.8 kilometres from the CBD, where the median house price is $1,777,500 – still pricey but less than many of Sydney’s other sought-after inner suburbs – is a great example of the efficient use of land.

“It’s one of those suburbs with a very high price per square metre ($13,390) and that’s what helps to contain that overall median price.”

Melissa Yee and her husband Ryan Champley, with their two-year-old son William, have put their four-bedroom home in Bexley on the market and hope to downsize in the same suburb.

Champley said they were keen on Marrickville for their first home, 7 kilometres south-west of the CBD, but settled on Bexley as it was the next available suburb.

“Marrickville house prices are steep. We considered what suburbs were 25 to 30 minutes from the city. You’ve got Manly in the north and Strathfield in the west where homes were around $3 million, so we thought Bexley was undervalued,” he said.

They also considered Mortdale, 17 kilometres south of the CBD, but favoured Bexley’s location to the CBD, schools and infrastructure.

Their agent Adrian Tsavalas of Adrian William Real Estate said buyer interest in Bexley is coming from the inner west.

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“Most of our clientele who are upsizing from the inner west consider Bexley to be a great place to live,” he said.

“There are more character homes, it’s close to the airport and beaches, and has great transport options.”