Living within 10 kilometres of an Australian capital city CBD doesn’t come cheaply.
RP Data’s Home Value Index for July showed combined capital city home values increased 10.2% over the past 12 months.
In his weekly report, RP Data research analyst Cameron Kusher said inner city property demand is strong.
“With low mortgage rates, buyers are battling it out to purchase homes close to the city centres – of course areas closer to the CBD tend to be much more expensive than those areas further away,” he said.
Kusher ran the numbers to uncover the most affordable inner city suburbs around the country.
“In some cities such as in Sydney and Melbourne, the cost of housing is restrictive due to a high level of demand coupled with inherently low levels of supply,” he said.
Sydney recorded the largest increases in values over the past year at 14.8%. It also tops the list of the most expensive “affordable” suburbs. Wolli Creek, to Sydney’s south, with a not very affordable median house price of $710,303, is listed as the cheapest suburb within 10km of the CBD.
Also on the list of most affordable suburbs in the harbour city are Waterloo ($761,054), Sydenham ($807,195), Beaconsfield ($811,261), and Tempe ($828,914).
Melbourne filters in behind Sydney, recording annual value growth of 11%. The median house prices of its five most affordable suburbs close to the city centre are all below $700,000.
Melbourne’s list included Bellfield ($533,252), Maidstone ($543,582), West Footscray ($571,961), and Yarraville ($655,993).
Thankfully, the starting point for a house in Australia’s other capital cities, which recorded the a total growth value of 7% over the past year, are more affordable.
Brisbane placed third for the cheapest median house price suburbs with Rocklea at $330,84, topping the list. The neighbourhood of Nathan is fifth cheapest at $473,513.
Adelaide’s cheapest within 10km suburb is Dry Creek ($255,349), in Perth it’s Glendalough at $438,995 and in Canberra, Page is listed as the most affordable at $445,417.
While in Hobart it’s Clarendon Vale at $158,159, and the Darwin suburb of Malak with a median house price of $585,478.
Kusher said he expects home values in inner-city areas to continue to climb, especially if interest rates remain low.
Here’s the full list.
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