New report identifies Australia’s most affordable property locations

The Northern Territory leads the way for housing affordability, with 100% of locations deemed affordable, according to the PropTrack Housing Affordability Index.

Next come Western Australia on 41%, Queensland on 23%, South Australia on 14% and the ACT on 10%.

They’re followed by New South Wales on 10%, Victoria on 8% and Tasmania on 7%.

A location is deemed affordable when calculations show buyers on a median household income spend no more than 25% of their pre-tax income on mortgage repayments and can afford to purchase at least 20% of homes in that location (based on sale prices recorded between July 2023 and March 2024).

Affordability is high in many outback locations, but low in most capital cities.

The most affordable locations in the five big capital cities

The most affordable parts of Sydney are in the west and south-west, with 18% of homes in Canterbury deemed affordable, 15% in Liverpool, 10% in Mount Druitt, 9% in Parramatta and 6% in Auburn, according to PropTrack.

Melbourne is unusual in that the inner city is the most affordable part of the city, thanks to the large number of units, while the western suburbs are also relatively affordable. Affordability hotspots included Melbourne City (24%), Maribyrnong (18%), Melton-Bacchus Marsh, Tullamarine-Broadmeadows and Brimbank (all 6%).

Brisbane's most affordable locations are in the south and west, and include Springwood-Kingston (20%), Beenleigh (17%), Beaudesert (12%), Ipswich Inner (10%) and Ipswich Hinterland (8%).

Adelaide has become a lot less affordable since the pandemic, thanks to the city's strong price growth. The most affordable parts of the city tend to be to the north of the CBD, and include Adelaide City (12%), Playford (7%), Gawler-Two Wells (5%), Salisbury (4%) and Port Adelaide-West (2%).

Perth's most affordable locations are in the south, and include Belmont-Victoria Park (22%), Kwinana (20%), Mandurah, Armadale (both 17%) and Gosnells (16%).

How to afford a property

Understanding where housing may be more affordable could feed into your broader investment strategy, though it is important to also consider growth or yield. If you’re an investor, you may have equity in an existing property that could go toward a deposit.

If you’re looking to buy your first home, the federal government's First Home Guarantee and Regional First Home Buyer Guarantee schemes give eligible buyers the chance to purchase a property with just a 5% deposit, without paying lenders mortgage insurance (LMI).

The federal government also helps eligible single parents enter the market with just a 2% deposit, without paying LMI.

Get in touch if you’d like to buy a property in 2024. I can explain your options to you, and will also be happy to manage your home loan application.

Published: 6/5/2024

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