Top affordable inner city suburbs

Top affordable inner city suburbs

Posted on Friday, August 15 2014 at 1:31 PM

They say buying the right property close to the CBD pays. But generally property prices in these central locations can hurt the hip pocket in comparison to purchasing further afield. Investors and owner-occupiers could be delighted by RP Data’s latest findings revealing affordable inner city suburbs do still exist.

RP
Data research analyst Cameron Kusher highlights the top five most affordable
suburbs for houses and units within 10 kilometres of Australia’s capital
cities.

“Inner city suburbs are also generally better
serviced by both essential and desirable amenities such as schools, medical
services, shopping centres, social amenity, roads and public transport
infrastructure,”
he says.

There’s a large divergence in results across the
cities, when looking at the most affordable median value suburbs in close
proximity to the CBD. Sydney’s Wolli Creek, for example, has the lowest median
house value at $710,303 (which is not very affordable) but in Melbourne the
most affordable suburb is Bellfield at $533,252. In most other capital cities,
except for Darwin the starting point for a house is significantly lower.

In many cities these areas are less desirable
than other inner city suburbs however they’re close to the city and potentially
have scope for urban renewal over the coming years says Kusher.

“Home values in inner-city areas are likely to
continue to increase particularly as mortgage rates remain at such low levels,”
he says.

And as a result more and more potential buyers
are likely to be priced out of the inner city housing market.

“This scenario creates good opportunity for
other city areas – if buyers can’t afford to purchase a home within the inner
city, they will most likely look to those locations that tick as many of the
inner city boxes, just at a lower price point than the inner city areas,” he
says.

“Given this, suburbs featuring quality public
transport connections, abundant retail and social amenity, quality schools and
medical amenity will likely see renewed interest as inner city buyers look to
these more affordable alternatives.”

 

Most affordable
suburbs within 10km of capital city CBDs

(As of June 2014)

 

                        HOUSES                                                                   UNITS

 

 

 

 

 

 

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