The closest affordable suburb for those buying their first house in Sydney and Melbourne is at least 65km away.
Gosford, on the Central Coast, is 65km from Sydney’s business district. And it is the cheapest area for first time buyers, according to a study by online property listing firm Domain. If you are in Melbourne, it is Millgrove about 70km away.
Gosford, which is at least 90 minutes away from Sydney CBD by train, has a median house price of $412,500 compared with Sydney’s median dwelling price of $872,300.
The survey underscores the mounting housing unaffordability in Australia’s main capital cites where home values have doubled since 2009.
That comes as wages are growing slower than inflation and household debt reaches unprecedented levels.
Domain Group’s First Home Buyers Report said just 11 suburbs were affordable based on a price of under $459,010, which is the average New South Wales first home buyer loan size.
If you include the $10,000 boost from the First Home Owner Grant for new properties, an extra six suburbs are deemed affordable.
Greater Hobart came out on top for first home buyers looking to purchase close to the CBD and has the lowest entry to market price point for houses. Greater Adelaide has the lowest entry to market price point for units.
The following tables shows the most affordable suburb in Sydney and Melbourne:
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