The latest Affordable and Liveable Property Guide (ALPG) from PRD has highlighted a selection of Australian suburbs that are considered not only desirable to live in, but affordable for many households.

Among the top picks mentioned in the guide are Richmond (Melbourne), Glenorchy (Hobart), and Canterbury (Sydney).

PRD Head of Research Dr Asti Mardiasmo said the latest ALPG was unusual in that suburbs from traditionally more expensive cities were overrepresented.

“It was much easier for me to find affordable and liveable suburbs in Sydney and Melbourne, compared to Gold Coast, Hobart and Brisbane,” Dr Mardiasmo told Savings.com.au.

She said that while these smaller cities had lower property prices, Sydney and Melbourne had far more suburbs that met the liveability criteria while remaining relatively inexpensive compared to the state average.

Dr Mardiasmo also said there might be a rare opportunity for first home buyers to snap up a bargain in Australia’s two largest cities.

“There are more suburbs with negative price growth in Sydney and Melbourne than usual, because these capital cities dipped lower than others in the past 12 months due to cash rate hikes, so more chances for first home buyers there,” she told Savings.com.au.

“That’s something I didn’t think I would say to be honest, normally I would say this about Brisbane, Hobart or the Gold Coast.”

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

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
5.69% p.a.
6.16% p.a.
$2,899
Principal & Interest
Fixed
$0
$530
90%
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Flexibility to split your loan with both fixed and variable rates
Disclosure
5.99% p.a.
5.90% p.a.
$2,995
Principal & Interest
Variable
$0
$0
80%
Apply in minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Disclosure
6.09% p.a.
6.11% p.a.
$3,027
Principal & Interest
Variable
$0
$250
60%
  • No annual fees – None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely – Access your additional payments when you need them
  • Home loan specialists available today
Disclosure
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

Selection criteria

PRD chose the top suburbs based on several criteria. To be eligible for selection, suburbs needed to be within 20kms of the city centre (10kms for Hobart), and to have had at least 20 (10 for Hobart) property transactions in the past six months to ensure a large enough sample size of properties.

  • Investment potential. While liveability was a bigger priority, PRD also considered the investment viability of each suburb. Suburbs were only considered if the rental yield was above the city average, and vacancy rates were lower.

  • Affordability. For each city, a ‘liveability premium’ was established, which was the average percentage difference in median price between suburbs that were considered liveable and the median for the entire city. To be affordable, suburbs needed to be beneath the median price, plus the premium. For example, PRD found there was a 42% premium in Brisbane above the median to reach liveability standards. That means suburbs in Brisbane needed to be no more than 42% more expensive than the city wide median.

  • Development. Suburbs needed to have a high total estimated value of future project development for the 1st half of 2023, as well as a higher proportion of commercial and infrastructure projects.

  • Liveability. While there were several variables that factored into liveability, all suburbs needed the following:

    • Low crime rates

    • Availability of crucial amenities (schools, public transport, healthcare etc.) within a 5km radius.

    • Unemployment rate on par with or lower than the state average

Affordable and liveable suburbs in Sydney

Houses:

Suburb

Median price

Rental yield

Value of future projects

Villawood

$870,000

3.0%

$123.3 million

Chester Hill

$988,500

3.3%

$7.5 million

Wiley Park

$1,059,500

3.0%

$44.9 million

Units:

Suburb

Median price

Rental yield

Value of future projects

Telopea

$615,000

5.0%

$8.3 million

West Ryde

$631,000

4.5%

$7.7 million

Canterbury

$637,500

5.8%

$14.9 million

PRD said there were 70 suburbs in Sydney that experienced negative growth in the past 12 months. While this means these areas are ineligible for this list, it could also mean it’s a good time to buy property in Australia’s most expensive city. Those looking for a bargain in Sydney might want to act fast though, because there are signs that the market is turning around. The latest CoreLogic Home Value Index found Sydney property prices rose 1.8% in May.

Affordable and liveable suburbs in Melbourne

Houses:

Suburb

Median price

Rental yield

Value of future projects

Point Cook

$730,000

3.5%

$112.5 million

Derrimut

$715,000

3.5%

$432.3 million

Epping

$655,000

3.5%

$232.3 million

Units:

Suburb

Median price

Rental yield

Value of future projects

Point Cook

$565,000

4.7%

$112.5 million

Richmond

$575,000

5.3%

$242.8 million

Ebbing

$480,000

4.6%

$232.3 million

PRD found Melbourne to have the most affordable liveable homes in Australia’s east. Home buyers in Melbourne need to add just 13% to the state median price to buy in a highly liveable area. The suburbs selected were all roughly 20kms from the Melbourne CBD, and all have large scale construction in the pipeline for the next few years.

Affordable and liveable suburbs in Brisbane

Houses:

Suburb

Median price

Rental yield

Value of future projects

Capalaba

$750,000

4.2%

$10.4 million

Springwood

$785,000

4.2%

$17.3 million

Deagon

$840,000

4.3%

$30 million

Units:

Suburb

Median price

Rental yield

Value of future projects

Bald Hills

$422,500

5.4%

$2 million

Springwood

$350,000

7.7%

$17.3 million

Dutton Park

$422,000

5.8%

$6.5 million

In both Brisbane and the Gold Coast, Dr Mardiasmo called it ‘incredibly challenging’ to find suitable suburbs for houses. Crime rates, unemployment rates and a suitably high value of future projects were particular sticking points.

On the other hand, for units Brisbane was the most affordable city for liveability. Buyers can purchase units in liveable areas for as much as a 24% discount compared to the state average, so looking at units might be where those in Queensland can find value.

Affordable and liveable suburbs in Perth

Houses:

Suburb

Median price

Rental yield

Value of future projects

Koongamia

$359,000

4.9%

$21.7 million

Stratton

$375,000

4.9%

$10 million

High Wycombe

$500,000

4.8%

$12 million

Units:

Suburb

Median price

Rental yield

Value of future projects

Success

$328,250

6.7%

$5.5 million

Forestfield

$350,000

7.0%

$5.5 million

Morley

$365,000

6.4%

$6.3 million

For houses, Perth was the most affordable capital city for liveability, with a softer property market and a high level of ‘readiness’ of its suburbs. Buyers need to pay just 5% more than the WA state average home loan size for property in a highly liveable suburb 

Affordable and liveable suburbs in Hobart

Houses:

Suburb

Median price

Rental yield

Value of future projects

Rokeby

$556,750

4.3%

$18.7 million

Berriedale

$597,500

5.1%

$6 million

Glenorchy

$600,000

4.4%

$211.9 million

Units:

Suburb

Median price

Rental yield

Value of future projects

Glenorchy

$475,500

5.5%

$211.9 million

New Town

$522,500

3.8%

$21.7 million

Rokeby

$540,000

3.9%

$18.7 million

While the general consensus is that the property boom in Hobart has been and gone, there were still some attractive spots that PRD identified. Glenorchy was particularly interesting, with rental yields of 4.4% for houses and 5.5% for units, as well as more than $200 million worth of construction projects in the pipeline. The majority of this will be the new redevelopment of the Hobart Showground precinct, which could add considerable value to the area.

Affordable and liveable suburbs in Gold Coast

Houses:

Suburb

Median price

Rental yield

Value of future projects

Upper Coomera

$699,000

4.5%

$5.9 million

Oxenford

$785,000

4.5%

$31.6 million

Arundel

$850,000

4.5%

$5.8 million

Units:

Suburb

Median price

Rental yield

Value of future projects

Oxenford

$455,000

7.4%

$5.9 million

Biggera Waters

$503,000

6.0%

$21.5 million

Arundel

$525,000

5.5%

$31.6 million

While Gold Coast was another region where PRD didn’t identify many liveable and affordable suburbs, there remains plenty of opportunity, particularly for investors. Just 1.1% of the available rental properties on the Gold Coast were vacant in March 2023, which tends to be a reliable indicator of strong rental yields.

Affordable and liveable suburbs in Adelaide

Houses:

Suburb

Median price

Rental yield

Value of future projects

Salisbury Plain

$480,000

4.8%

$28 million

Old Reynella

$557,000

4.4%

$9.9 million

Modbury

$590,000

4.7%

$11.7 million

Units:

Suburb

Median price

Rental yield

Value of future projects

Bedford Park

$268,250

5.5%

$10 million

Salisbury

$330,000

5.8%

$8.1 million

Mawson Lakes

$344,475

7.3%

$152.8 million

For units, Adelaide was the most affordable city. Buyers could benefit from a 35% discount on units in highly liveable areas compared to the SA average. Units in Mawson Lakes are particularly eye catching, with a rental yield in excess of 7% and $150 million worth of construction projects in the pipeline.

Image by Belle Co via Pexels





Ready, Set, Buy!


Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!

With bonus Q&A sheet and Crossword!

By subscribing you agree to our privacy policy