The Reserve Bank of Australia gave borrowers a pre-Christmas reprieve leaving the official cash rate unchanged at 4.35 per cent for the remainder of 2023.
After 13 rate rises in 18 months this is good news for buyers, both in the short and long-term – those already scouring the market for something affordable and those who need a little more time to get their finances in order.
So where can you find bargains in today’s property market?
There are affordable properties in every capital city across the country that promise both value and potential for growth.
The Darwin suburb of Gray is where you’ll get the best bang for your buck in the country with the cheapest price for a home at $330,095.
If you’re after somewhere in the Harbour City, the Sydney suburb of Lakemba has an average home value of $449,451, while Wright in the Australian Capital Territory has prices just over $570,000.
Eliza Owen, CoreLogic Head of Research, says it’s worth noting these areas are affordable for a reason.
“They tend to be higher density markets, or further from cities, or low socio-economic areas. None of those elements are necessarily bad things, and indeed some of these markets have shown very strong capital gains in the past year,” Owen told FW in a statement.
“But there are clearly some compromises for those that want to own their own homes in major cities, such as a longer commute to work, or saying goodbye to a backyard and opting for a unit.”
As for other Aussie cities, CoreLogic revealed the top five most affordable suburbs in the country for dwellings* (both house and units).
For the Harbour City, the top five suburbs where buyers will find value for money are Lakemba, Warwick Farm, Wiley Park, Harris Park and Liverpool.
Prices in this market range from just under $450,000 and top just over $490,000.
Heading south to Victoria, the key suburbs to keep an eye out for are Carlton, Travancore, Notting Hill, Dandenong and Melton.
Property prices range from just over $376,000 and top just over $460,000
Up north in Brisbane, the suburbs with the most affordable offerings are Russell Island, Lamb Island, Dinmore, Macleay Island and Toogoolawah.
Prices for this market range from $380,000 to $420,000
As for South Australia’s capital, the key suburbs are Elizabeth North, Elizabeth South, Elizabeth Downs, Elizabeth Grove and Davoren Park.
Property prices in this region range from $359,000 to $390,000.
In the country’s western state, the five most affordable suburbs in Perth are Glendalough, Medina, Midland, Cockburn Central and Calista.
Property prices range from $338,000 to $406,000.
In the Apple Isle, the top five suburbs are Risdon Vale, New Norfolk, Bridgewater, Chigwell and Primrose Sands.
Property prices in the area from $440,000 to $519,000.
As for the nation’s capital, the top suburbs to find a bargain are Phillip, Braddon, Greenway, Belconnen and Wright.
Prices range from $528,000 to $519,000.
For the Territory, the suburbs of Gray, Coconut Grove, Moulden, Driver and Bakewell round out the list.
Prices in this region range from $330,000 to $398,000.
Owen said buyers might start to see more opportunity over the summer months compared to spring. Yet, ongoing affordability remains subtle.
“There are some markets in decline at the moment across Sydney and Melbourne, but at a high level, values in Sydney are still rising, and Melbourne home values were down a mild 0.1 per cent in the month of November,” she said.
According to the ANZ CoreLogic Housing Affordability Report, the median gross income household would still require 9.6 years to save a 20 per cent deposit on the median dwelling value in Melbourne, and 12.6 years in Sydney. So it’s not good news for the first home buyers whose hearts are set on the nation’s two most populous states.
“Furthermore, some cities with relatively low price points, such as Perth where the median is $646,520, have really strong selling conditions,” Owen said.
“Median selling times across Perth were just 13 days in the three months to November, so it’s almost as if the trade-off for a low-priced dwelling is that they are in such high demand at the moment. This is particularly the case in the high interest rate environment, which is likely skewing more housing demand to the cheaper end of town.”
As for what this means for the housing market in 2024, it could come down to the RBA.
“I think as the cash rate remains higher for longer, we could see weaker selling conditions relative to winter and spring of 2023,” Owen said.
“For those that need more time to get their finances together, or want to take their time inspecting lots of properties, they may be in luck as Sydney and Melbourne see a much more normalised level of stock, slowing rates of growth in Sydney and slight declines in Melbourne.”
*Source: CoreLogic Home Value index (as at November 2023)
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