Where to find Australia's most affordable and liveable suburbs: PRD report

Middle-ring suburbs across the country’s capital cities are the best bet for house hunters seeking both affordability and liveability, a new report has found

Rapidly rising property prices in Australia have seen premiums climb for desirable pockets, but liveable suburbs are not completely out of reach for those on more of a budget, the latest PRD Affordable and Liveable Property Guide shows.

The report identified suburbs to watch within a 20-kilometre radius of the Sydney, Melbourne and Brisbane central business districts, and within 10 kilometres of the Hobart city centre.

Suburbs had to have relatively affordable median prices, decent rental yields and a high estimated value of future project and infrastructure development – to ensure the suburbs showed signs of sustainable economic growth. They also had to have low crime rates, an unemployment rate on par with, or lower than, the state average, and proximity to amenities like schools, public transport, shopping centres, green spaces and health services.

“It’s not just about living in the cheapest suburb,” PRD chief economist Diaswati Mardiasmo said of the report. “But also about being able to live in a suburb that is well serviced by public transport, amenities and everything you need [for the most affordable price point].”

Finding suburbs that met the criteria had become increasingly challenging in the current market, Dr Mardiasmo said, with the number of such suburbs in Sydney, Melbourne and Brisbane halving over the past six months. However, there were still some pockets where good liveability cost less of a premium.

Here’s where buyers should cast their gaze in each of the included cities.

Sydney 

The Sydney suburbs selected for their combination of affordability and liveability were primarily in the city’s south – all at least 15 kilometres from the CBD.

Cromer on the northern beaches, where prices have soared during the pandemic, was the exception. With a median house price of $812,500, on PRD figures, it was the most expensive of the three suburbs picked for apartment buyers – which also included Mortdale ( $657,250) and neighbouring Peakhurst ($751,000) in the south.

Peakhurst was also among the top choices for house hunters, yet again, and the most expensive with a median of almost $1,426,500. Como and Jannali in the city’s south also made the list, with respective medians of $1,450,000 and $1,353,500.

While these suburbs are not cheap, they are priced at the more affordable end of the market – only about 8 per cent of houses sold for less than $1 million in metro Sydney since early 2020, and only about 15 per cent of units sold for under $600,000, PRD figures show.

Even since the last report in May, the proportion of houses selling for between $1 million and $1.5 million had shrunk from 30 per cent of homes to 19.6 per cent, Dr Mardiasmo noted. 

Melbourne

The picks for Melbourne were scattered across the city’s north and west. Hadfield – about 10 kilometres north of the CBD – was the closest, and also the most expensive selected for apartment buyers with a median of $600,000.

Despite multiple lockdowns, Melbourne also had an increase in sales in the middle to upper, and premium price points, Dr Mardiasmo said, with almost three-quarters of houses sold within 20 kilometres of the CBD trading for more than $800,0000 for the year to date.

Her picks for house hunters included Greensborough ($970,000), Keilor East ($920,000) and Point Cook ($702,000), the last of which had more affordable prices than some of the chosen Brisbane and Hobart suburbs. As did Truganina, another apartment pick, with a median of $446,000.

Greenvale, with a median apartment price of $590,000, rounded out the top three selections for unit buyers.

Brisbane 

Brisbane had the largest proportion of houses available for buyers with lower to middle budgets, with more than a quarter of sales within the metro region this year below $700,000. However, Brisbane buyers need to spend more of a premium to purchase in a liveable suburb.

While Brisbane, along with Hobart, was typically thought of as a more affordable capital city, many of the lower-priced suburbs failed to satisfy other criteria such as liveability, investment return and future project development, the report noted.

The top selections were largely to the city’s north, with the exceptions of Birkdale and Oxley.

“Many people think that when they need to go to an affordable place, they need to go to the northern part of the city … but Oxley is in the southwest and Birkdale is in the east,” Dr Mardiasmo said, adding that more established areas were often overlooked for newer suburbs where buyers knew prices would be lower. 

Both Birkdale ($720,000) and Oxley ($695,000) were more expensive than Bracken Ridge ($624,000) in the north, which was the third pick for house hunters.

The north is also where those after an apartment should look, with McDowall, Gordon Park and Kedron making the list. Each had a median unit price below $450,000 – a price tag that 45 per cent of Brisbane metro apartments sold below this year.

Hobart

The cost of liveability, particularly for house hunters, remains the highest in Hobart, where residents need to pay the largest premium for liveable suburbs. Low supply meant many of Hobart’s liveable suburbs were priced above the city’s median, meaning they failed the affordability test, the report noted, while more affordable suburbs did not pass the liveability criteria.

“The perception of Hobart being the most affordable place have changed, we’re seeing record-breaking sales and a lot of it is to do with little supply, ” Dr Mardiasmo said.

Oakdowns, about a 20-minute drive from the CBD, made the top picks for both house and units, with medians of $595,000 for houses and $550,000 for units.

Howrah ($705,000) and Berriedale ($480,000) were also among the picks for house-hunters, while Moonah ($480,000) and Glenorchy ($410,000) were selected for apartment buyers.