With Australian property values rising once more, one buyer’s agency has done the hard yards and located five areas that scream affordability.
National buyer’s agency, Adviseable, identified a handful of Australian suburbs where house prices are below $550,000 primed for investors to enter.
Kate Hill, Adviseable property buyer, said recently rising home values made it “extremely difficult to find a property priced under $550,000”, but she ensured “there are suburbs where affordable homes are still available”.
With cost-of-living pains and higher interest rates forcing prospective buyers to tighten their purse strings, Ms Hill said buyers active in the market are met with strict competition.
“It’s tough out there at the moment, with the shallow pool of available properties for sale attracting a lot of attention,” she said.
Ms Hill believes the identified suburbs “offer opportunities worth exploring”.
Adviseable’s five suburbs below $550,000 primed for investment are:
- Armadale, WA:
Ranked in Smart Property Investment’s Fast 50 report for this year, Armadale is just 30 kilometres southeast of Western Australian capital Perth and offers prospective buyers a strong sense of community and connection, all while at an affordable median price of approximately $338,000.
Along with solid price gains, with houses in the region up 12.8 per cent over the last 12 months, Ms Hill also explained: “Investors can achieve solid gross yields right from the get-go, with the median house rent of $400 per week – up 14.3 per cent year-on-year.”
The so called “ugly duckling” suburb – because its market potential holds more than meets the eye – is also set to benefit from the state government investment into the region, which promises transformation of the local rail line networks, amongst other things.
- Darling Heights, Qld:
Lying within Toowoomba, Darling Heights has absorbed the surrounding cities’ natural beauty and peaceful aura and made it its own.
“Far less tempered is the interest of investors, who see Darling Heights as a prime location to snap up a rental property – and it’s all thanks to the bustling University of Southern Queensland campus,” Ms Hill said.
Home prices in the region shot up nearly 20 per cent over the past year. In spite of this, Darling Heights’ median home value remains at around $513,500, with this figure dropping to $315,000 for units.
On top of this, rental yields for homes sit at 4.4 per cent from an average rent of $440 per week, while units, which garner a weekly rent of $340, boast yields of 5.6 per cent.
“As well as the uni campus, Darling Heights is also just a stone’s throw away from the CBD. Its youthful vibe makes it a possible destination for first home buyers, too,” Ms Hill added.
- Delacombe, Vic:
A fast-growing suburb on the outskirts of Ballarat, Ms Hill said a $50 million master plan developed by the state government would add “more than 100 new modern and energy-efficient dwellings”, sparking the construction of high-quality streets and open public spaces.
“Government agency, Homes Victoria, intends the masterplan to lay the groundwork for the long-term development of the suburb, benefiting current and future home owners,” she added.
At $540,000, the suburb’s median value falls just beneath the threshold for this list thanks in part to a 6.1 per cent in the last year. Ms Hill believes the “relatively affordable price tag will see first home buyers, young families and investors increasingly prioritise this patch”.
“But rental prices are rising,” she said, noting median house rents are up 7.9 per cent over the last 12 months to $410.
- Munno Para, SA:
In Adelaide’s northern suburb, swept by green spaces, safe streets and good amenities, Munno Para has become a magnet for families in recent years. Adding to its appeal is a relatively affordable house price of $390,000 – although this is up 15.4 per cent in the last 12 months.
“First home buyers are increasingly flocking to Munno Para because of its sense of community, affordable price tag and a relatively convenient proximity to the CBD via good road connections,” Ms Hill said.
“Investors are sitting up and paying attention, too, with a median house rent of $420 per week offering a gross 5.6 per cent yield,” she added.
- Crestmead, Qld:
Another suburb favoured by families, Crestmead, in the bustling and ever-growing Logan region, is one to watch out for thanks to the forecasted population growth in the surrounding region of 500,000 by 2034.
“It also boasts exceptional connectivity to both Brisbane and the Gold Coast,” Ms Hill said.
“The median house price of $524,000 has risen by 6.9 per cent in the past year,” she added, expressing her belief that the region “remains undervalued given its appealing attributes”.
