The top 5 suburbs within 5km of the CBD for less than $500,000

Buyers hoping to crack the property market with a $500,000 budget while having easy access to suburbs within 5 kilometres of a capital city CBD are in luck, according to new analysis.

The recently released Domain House Price Report shows there are 39 suburbs spread across most of the major capital cities within 5km of a CBD where it costs less than $500,000 to buy a home. The Domain editorial team has picked its top five. 

The picks were based on proximity to cafes, public transport, walkability, access to green space and local shopping.

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Property prices in Melbourne have taken a step backwards, and popular suburbs like Abbotsford and Carlton currently have median unit prices of less than $500,000.

“You can get a two bedroom, one bath, one car, for less than $500,000 [in Abbotsford],” says real estate agent Brittny Ksenic of BigginScott Richmond.

The majority of unit buyers in Abbotsford are first-home buyers using government schemes to enter the market and young families who want to live near where they work, says Ksenic.

SOLD - $280,000

414/615 Victoria Street, Abbotsford VIC 3067

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“Investors are slowly leaving our marketplace due to increased land tax bills, so we are finding a lot of investors are selling up in the area. But in turn, due to the rental shortage, we’re finding a lot of renters are turning to the banks and getting their pre-approval and buying these apartments instead,” she says.

Abbotsford is not only a short walk into the CBD, but it also has access to the Yarra River, plenty of greenery and parks, good food options, and trams that go right into the city, says Ksenic.

Carlton, in the heart of Melbourne, is known for its Italian cafes and restaurants on Lygon Street, its Victorian heritage streets and buildings, and its parks and gardens. The median unit price is currently $360,000, according to Domain data.

“It’s a great location that really got everything here. You’ve got the city, you’ve got Lygon Street and you’ve got Fitzroy around the corner. Great restaurants, great amenities, everything’s really walking distance,” says local agent Lewis Persano of Belle Property Carlton | Melbourne | North Melbourne.

“A lot of the demographic we sort of get are mainly first-time buyers looking to enter the market, getting into something affordable in a great location. Even though there’s a lack of investors in today’s marketplace, we’re still seeing some investors interested in [Carlton], just because the rental to rental yield is so high,”

A $500,000 budget is likely to get you a small two-bedroom, two-bathroom or two-bedroom, one-bathroom unit without any parking in a dense apartment block, says Persano.

$470,000

1501/28 Bouverie Street, Carlton VIC 3053

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In Adelaide, the suburb of Plympton (winner of  Time magazine’s most liveable city in 2018) has seen a rise in popularity among first-home buyers, as buying is relatively affordable, says real estate agent Adam Keane of Ray White Glenelg.

“Five years ago, I used to do open inspections in [apartment buildings], and I would barely see a person come through over a couple of weeks of campaigns. We might get three or four buyers through, whereas now there are people lining up to buy them,” he says.

“You’re generally finding large-scale unit blocks, high-rise apartment blocks. You’ll definitely be able to pick up two-bedroom apartments in that price range [of $500,000].” 

Many affordable apartments were initially built in the 1960s and 1970s, and Keane says those are the sort of buildings to search for when having a budget of less than $500,000.

SOLD - $520,000

7/365A Marion Road, Plympton SA 5038

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“Plympton is halfway between the city and the beach along ANZAC highway. It’s a 10-minute drive into the city and a 10-minute drive to the beach. It’s very central from an access perspective,” he says.

In Brisbane, Bowen Hills is near the trendy James Street precinct in Fortitude Valley, the Brisbane River and is full of boutique shopping and cafe culture. Although it has seen massive price growth in the past few years, unit prices still have a median of $500,000.

“You’re probably looking at a one bed, one bath, no car, or one bed, one bath with a car. You’ll struggle to find a two-bedroom in Bowen Hills for that [under $500,000] price.” says real estate agent Melissa Nicholls of Ray White Ascot.

“The big draw card for Bowen Hills is it’s quite central and the public transport is really good. So you’ve got your big train station at the top,  and you’re within walking distance of James Street. Essentially, if you wanted to, you could walk to the city. 

SOLD - Price Withheld

803/37 Mayne Road, Bowen Hills QLD 4006

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“[Living in Bowen Hills] is more of a lifestyle thing for people – and affordability,” says Nicholls.

However, Nicholls believes it will become more difficult to find units with a $500,000 budget as prices in Brisbane are expected to continue to skyrocket in the next few months. 

“Twelve months ago you could pick up a two-bedroom, one-bath for $430,000, and people were saying that was expensive. And now that same apartment that I sold 12 months ago just transacted for $720,000,” she says.

East Perth is widely considered one of Perth’s most beautiful suburbs and has a median unit price of just $380,000.

“You [can] get a two-bedroom apartment, around about 80 square meters [with a $500,000 budget],” says agent Nathan Miles of Nourish Property. 

The majority of buyers are first-home buyers and investors taking advantage of the affordable prices so close to the CBD, says Miles. 

“You’re looking at working professionals and investors between 25 to 40 [years old],” he says.

From $300,000

17/138 Adelaide Terrace, East Perth WA 6004

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“[East Perth] has got all of the restaurants and bars, and feels like a European canal. You can come in with your boat. [People like living in East Perth because of] its close facilities, a train station, and the CAT – the free bus service that goes around there.”

While prices are affordable, Miles says more and more prices are closer to the $500,000 mark than the $380,000 median and expects that the median will grow even more next year.