Where you can find the cheapest houses in Australia
The current coronavirus crisis has many people tightening purse strings, re-evaluating budgets and questioning whether now is the right time to buy property.
But looking at the top 10 cheapest places to buy a house across Australia – all of which have median prices under $215,000 – it’s clear there’s still plenty of bargains to be had, even in the midst of a pandemic.
Data from the latest quarterly Domain House Price Report revealed a raft of affordable suburbs or towns with median prices starting at just $150,000, including Broken Hill in NSW, Maryborough in Queensland, Smithton in Tasmania and Mildura in Victoria.
Amazingly, there are 35 places around the country that have a median house price of less than $250,000.
The NSW mining town of Broken Hill tops the list with a median house price of just $150,000 – that’s less than the price of a block of land in most capitals.
Top 10 cheapest median house prices
| Suburb | Median price |
| Broken Hill, NSW | $150,000 |
| Davoren Park, SA | $187,250 |
| George Town, TAS | $205,000 |
| Elizabeth Downs, SA | $205,500 |
| Wellington, NSW | $208,000 |
| Maryborough, QLD | $210,000 |
| Smithton, TAS | $210,000 |
| Koongal, QLD | $212,500 |
| Elizabeth Park, SA | $213,000 |
Source: Domain House Price Report, June Quarter 2020
Perched on the edge of the outback 1144 kilometres west of Sydney, Broken Hill’s main industries are health and mining and it sees a lot of people coming to the town on working contracts.
“We get a lot of transient workers – firies, police, teachers – on two to three-year contracts. These people are looking to rent, and if they’re going to stay longer they’ll buy,” Ray White agent Clifford Wren said.
Wren has been selling property in the Broken Hill area for 21 years and says most sales are to investors.
“Sixty per cent of my turnover is from investors. A lot of investors come in and will generally buy around the $80,000 to $100,000 mark. They will do them up, rent them out and get about 10 to 11 per cent yield – it’s a rental mecca town,” Wren said.
“We do still have our local mum-and-dad buyers, but if they’re planning to stay they’ll buy a quality home at around the $300,000 to $400,000 mark.”
First National agent Mitchell Halpin echoes Wren’s sentiments that Broken Hill is an investor haven.
“[Broken Hill] offers affordable prices to purchase in comparison to what you’d pay in rent. That’s why we get a lot of investors looking to purchase because you do get a good rental return of 10 per cent and above.”
If Broken Hill feels too remote for your tastes, South Australia’s Davoren Park, Elizabeth Downs and Elizabeth Park – all suburbs in the Adelaide metro north region – offer buyers substantial bang for their buck, with median house prices sitting at $187,250, $205,000 and $213,000 respectively.
LJ Hooker agent Steve Jacobs has been working in the area for six years and believes house hunters should look at buying into these areas, considering the value on offer.
“It’s a little gold mine. The price point is a little bit lower because of the distance from the city, but you’re only 20 to 30 minutes from the CBD. There’s a rail and bus service that takes you right to the centre of town,” he said.
“It’s a very affordable area to live and a great opportunity for first-home buyers to get their foot in the door.
“For an investor, it’s a great return. We’re getting a lot of interstate investors buying up and renting out [homes].”
Number 163 Midway Road in Elizabeth Park has been on the market for less than a week and already Jacobs is fielding inquiries from five interested parties, including first-home buyers and investors keen to capitalise on the rental return of about $300 per week.
“It’s an ideal family home. It was built in the 1960s so is as solid as a rock and is on 830 square metres of land. That’s a big block. It’s fully fenced so the kids can run amok,” Jacobs said.
“I know banks are pulling the purse strings and making things a bit harder, but I’m surprised we’re not selling more.”
Buyers looking to bag a bargain will have to be quick if they want to score a home in George Town, Tasmania.
The small seaside town on the mouth of the Tamar River is a one-hour flight from Melbourne across the Bass Strait and just under 50 kilometres from Launceston.
With a median house price of $205,000, the area is seeing interest from first-home buyers, retirees and investors, and is becoming a major destination for mainland buyers, according to Harcourts agent Andrew Michieletto.
“Thanks to recent government grants, blocks of land are pretty much flying out the door. Any homes at this price point probably spend a maximum of two weeks on the market,” Michieletto said.
The recently listed three-bedroom property at 23 Gordon Square is the cheapest house on the market in George Town, according to Michieletto.
Sitting on 604 square metres with Tasmanian oak flooring and a separate living area, it’s close to schools and shopping facilities.
“It does need a little bit of work, but it is suited to first-home buyers or investors. It’s currently tenanted and getting $220 a week,” Michieletto said.
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