Sydney, Melbourne and Brisbane's most affordable and liveable suburbs revealed

author-avatar By on June 25, 2020
Sydney, Melbourne and Brisbane's most affordable and liveable suburbs revealed

Photo by Marc R. R. Dorda @doddynudo on Unsplash

A new report has revealed some of the most affordable and liveable suburbs in some of Australia's capital cities - Sydney, Melbourne, Brisbane and Hobart.

The latest PRD Affordable and Liveable Property Guide for the first half of 2020 shows that while the top suburbs don't come cheap, there are plenty of middle-ring suburbs within 20 kilometers of the CBD in each of these cities that are available for buyers on a budget. 

The report ranks the suburbs based on the following criteria:

  • Property trends: All suburbs have a minimum of 20 transactions and have either positive or neutral price growth from 2018 to 2019/20
  • Investment: As of April 2020, all suburbs considered will have a similar or higher rental yield than the relevant Capital City Metro area
  • Affordability: Identified suburbs have a median price below a set threshold. This threshold was set by adding a percentage premium to the respective state’s
    average home loan.
  • Development: All suburbs reviewed have a high total estimated value of project development for the 1st half of 2020, as well as a higher proportion of commercial and infrastructure projects
  • Liveability: All suburbs assessed must have a low crime rate, availability of amenities within a 5km radius (i.e. schools, green spaces, public transport, shopping centres, and health care facilities), and an unemployment rate on-par or lower in comparison to the state average.

According to PRD's breakdown of the report, Sydney is the most affordable capital city in terms of liveability. Those living in Sydney can purchase a property for -33.0% of the Sydney Metro median house price, compared to somewhere like Hobart where you may need to pay a premium of 5%. 

Brisbane, meanwhile, continues to be a "haven" for first home buyers with 45% of properties available for under $500,000.

In comparison, 5% of Melbourne properties and 0% of Sydney are available below this price. 

Despite this, Melbourne also represents an "opportune time" for first home buyers, according to the report.  

PRD reports there's been a -11.1% softening in median house prices over the past 15 months, and buyers with a budget under $800,000 can now access 46.3% of the market. 

Eighteen months ago, buyers with the same budget could only access 23.1% of the Melbourne market. 

Buying a home or looking to refinance? The table below features home loans with some of the lowest variable interest rates on the market for owner occupiers.

Lender
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval
VariableMore details
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
VariableMore details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
VariableMore details
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
VariableMore details
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^

Rates correct as of October 16, 2021. View disclaimer.

PRD Chief Economist Dr Diaswati Mardiasmo said now is the time to enter some markets, particularly in Sydney and Melbourne.

"Melbourne for example is now more accessible for those with less than $800K budget, at 45% (of properties)," she told Savings.com.au.

"First home buyers, those who are ready, need to move fast in some capital cities.

"For example those with a budget of less than $800K had access to 6.2% of Sydney in (the) 2nd half of 2019, now they only have access to 4.1% in (the) 1st half of 2020. So in places like Sydney the market moves faster."

Which suburbs has PRD identified? 

PRD has identified three suburbs within 20km of the CBD for each of these cities, for both units and houses, that meet the affordability and liveability criteria. 

For would-be buyers, suburbs like Griffin in Brisbane, Rockdale in Sydney and Greensborough in Melbourne could be added to their shortlist. 

"We have identified areas that have potential for future growth – having ticked the liveability and project development criteria. Therefore it helps buyers to identify where is the best place to buy, based on their budget, ensuring that they are not too far away from the CBD and have good prospects for the future," Dr Mardiasmo said. 

"A lot of the times buyers are quite surprised with the suburbs identified in these reports."

The research suggests residents of Brisbane and Sydney are more restricted in their choice of affordable and liveable suburbs, with Brisbane's affordable suburbs lying to the north while Sydney's affordable suburbs are clustered in the south-west. 

Identified affordable and liveable suburbs in Hobart and Melbourne were more widely spread geographically, with some clustering in Melbourne’s north and Hobart’s east.

Suburbs to watch, houses

City Suburb Median Price* Rental Yield Future Projects
Brisbane Griffin $465,000 4.3% $10.8M
Everton Park $615,000 3.7% $29.0M
Virginia $624,000 3.9% $15.6M
Sydney Miranda $1,160,000 3.2% $18.1M
Rockdale $1,100,000 2.5% $46.0M
Tempe $1,093,000 3.0% $44.8M
Melbourne Greensborough $803,000 2.9% $12.9M
Altona $885,000 2.7% $78.2M
Oakleigh South $923,000 2.8% $253.4M
Hobart Geilston Bay $512,500 4.2% $850.0K
Kingston $527,000 4.2% $4.7M
Lindisfarne $575,000 4.1% $900.0K

Source: PRD Affordable and Liveable Property Guide 1st Half 2020. *Median price captures sale transactions from Q1 2019 – Q1 2020.

Suburbs to watch, units

City Suburb Median Price* Rental Yield Future Projects
Brisbane Geebung $392,000 5.7% $2.6M
Arana Hills $395,000 4.6% $7.8M
Daisy Hill $411,000 6.7% $5.0M
Sydney Rockdale $610,500 3.8% $46.0M
Bexley $610,000 3.6% $28.7M
Peakhurst $659,000 4.0% $22.3M
Melbourne Kingsville $447,000 3.9% $4.2M
Moonee Ponts $470,000 4.1% $97.1M
Brunswick East $525,000 4.7% $14.8M
Hobart Bellerive $427,500 4.3% $8.2M
Kingston 412,500 5.5% $4.7M
New Town $407,750 5.0% $4.3M

Source: PRD Affordable and Liveable Property Guide 1st Half 2020.*Median price captures sale transactions from Q1 2019 – Q1 2020.

For those disenfranchised with the state of the property market, Dr Mardiasmo said not to lose hope, as "blue chip" suburbs with a combination of being less than 20km from the CBD, have high liveability and high numbers of incoming projects combined with low prices do exist. 

"It’s a matter of thinking outside of the box and identifying them at the right time."


Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Great Southern Bank, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au

Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.

In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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author-avatar
William Jolly joined Savings.com.au as a Financial Journalist in 2018, after spending two years at financial research firm Canstar. In William's articles, you're likely to find complex financial topics and products broken down into everyday language. He is deeply passionate about improving the financial literacy of Australians and providing them with resources on how to save money in their everyday lives.

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