The suburbs where property is more affordable now than it was in 2017

Looking for a bargain?

It’s an ill wind, as they say, and while some property owners have been hit hard by the slump in the value of their homes this year, buyers can rejoice at picking out homes in suburbs that are more affordable now than they were in 2017.

And they suddenly have plenty of choice. The latest Domain House Price Report shows that there are no fewer than 138 suburbs around Australia where home prices are cheaper than they were five years ago, mostly units but a few houses.

Top of the list are apartments in Sydney’s bijou beachside suburb of Little Bay, 14 kilometres south-east of the CBD, where prices have tumbled 25.3 per cent from a median of $1,091,000 to just $815,000.

“It’s the last suburb in the east before you get to Botany Bay and it’s not as popular as Bondi, Tamarama or Bronte,” said NG Farah agent Peter Goulding, who regularly sells properties in Little Bay. 

“Out of all the eastern beaches, it would probably be the first affected by the slowdown as it’s not as well-known as the others, but it’s in line with what’s happening throughout NSW and Victoria.

SOLD - $1,400,000

3/6 Darwin Avenue, Little Bay NSW 2036

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“Apartments have definitely been affected more than houses and I think people buy in Little Bay as a long-term proposition; very few leave. They want to be close to the beach and golf courses and coastal walks and lifestyle. Most people make that decision around a 10-year plan and, in that time, prices will grow.”

Other Sydney suburbs which have recorded large drops in unit prices since 2017 are Blacktown in the west (down 18.3 per cent), Glebe in the inner west (down 18.1 per cent) and Eastwood on the upper north shore (down 17.3 per cent).

The next worst-hit suburb after Little Bay, however, is Perth’s inner-south-eastern suburb of Victoria Park, on the Swan River. 

There, the median unit price has dropped by 23.2 per cent in the last five years, down from $410,000 to $315,000.

Local agent Belinda Airey of Airey Real Estate said the area didn’t have a great reputation in the past but had now become younger and much trendier. “But it represents very good value and is a cracking good suburb now,” she said.

SOLD - $299,000

3/57 King George Street, Victoria Park WA 6100

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“Prices have gone down the most for the more affordable product, like units in less expensive suburbs, because of people’s reduced borrowing power. So with a bit of an adjustment, that shows up more in the percentage change in the lower end.”

Other West Australian suburbs with the biggest unit price drops since 2017 are Maylands in the north (down 21.8 per cent) and Mount Lawley in the city (down 19.5 per cent).

In Victoria, a suburb that has become more affordable now than five years ago is Melbourne’s Essendon North, 10 kilometres north-west of the CBD, with a 17.9 per cent fall from $472,600 to $388,000. 

That means apartment buyers can find good value there, said Walshe & Whitelock agent Joe Pollina.

“Units are cheaper now as they’re very hard to move in the north these days,” he said. “There’s a bit of an oversupply of units there as a lot of car yards in Essendon North are being snapped up and being converted into apartments, especially along Keilor Road.

SOLD - $310,000

3/48 Keilor Road, Essendon North VIC 3041

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“As a result, there’s a lot of competition among them and, with investors not buying, and first-home buyers very cautious because of rising interest rates, prices are more affordable.”

Also in Melbourne, there’s good unit-buying to be had in Box Hill in the inner east (down 17.4 per cent) and inner-urban Canterbury (down 17.1 per cent).

In Queensland, the suburb offering the best buying for units is riverside Milton in the inner city, where the median price has dropped 16.5 per cent from a 2017 median of $518,560 to $433,000 today.

Nobel Realtors’ Anna Samios says the area does represent very good value as it has such a great location close to the city, and is just a hop, skip and jump to everything Brisbane has to offer.

SOLD - $580,000

13/29 Gordon Street, Milton QLD 4064

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“But there are a lot of units there, and lots more coming on,” she said. “I’m surprised that we haven’t had a lot more people from interstate calling to buy there as it’s very affordable for them and there are some units close to the railway line – which goes through Milton – which can bring down the price a bit more.”

Further north, in Cairns, unit prices in Manunda are down by 12.1 per cent.

Apartments in Darwin City have also recorded a median price fall of 14.4 per cent to $445,000, and in Larrakeyah it is down by 10.9 per cent. 

The ACT has only two suburbs where unit prices have fallen since 2017 – Canberra central by 2 per cent to $551,500 and Bruce, Belconnen, by 0.1 per cent.

South Australia has only one suburb featured in the list – Plympton in Adelaide, where unit prices have dropped 9.5 per cent to $285,000.

Houses, on the other hand, have fared much better over the past five years, with median prices falling only in a handful of West Australian suburbs and three areas of Victoria.

SOLD - $950,000

35 Harlington Street, Clayton VIC 3168

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The biggest drops in the west were houses in Narrogin, south-east of Perth in the wheatbelt region, with a decrease of 15.3 per cent to a median of $205,750, and in Kalgoorlie in the Goldfields, down 14.5 per cent to $300,000.

In Victoria, the areas where houses are cheaper now than they were in 2017 are Clayton in Melbourne’s inner south, down 13.7 per cent to $934,000, Fitzroy in the inner city, down 3.5 per cent to $1,455,000 and Box Hill to the east, down 2.7 per cent to $1.46 million.