Canstar’s Bright Stars Report: Best Affordable Suburbs in Australia 2023
Welcome to Bright Stars 2023: Canstar’s Best Affordable Suburbs Report powered by Hotspotting. This report ranks 14 jurisdictions across Australia – comprising eight capital cities and six regional locations – from most affordable to least affordable.
We used the initial outlay required (which includes stamp duty and Lenders Mortgage Insurance if applicable) and repayments as a percentage of income to determine the rankings. The property price was set at 75% of the median house value in each location based on CoreLogic Home Value Index data to February 28, 2023.
We have also identified 110 ‘Bright Star’ suburbs and towns across the country using five key metrics – sales volumes, price growth, vacancy rates, infrastructure and proximity to work and amenities – to identify affordable suburbs that are desirable and likely to grow in value over time. (You can find detailed methodology information in the full report.)
Regional Western Australia has come up trumps as the most affordable location to buy property in Australia followed by Regional South Australia.
You might expect the top half of the affordability leaderboard to be dominated by regional areas but two capital cities have made the cut – Perth is in third place and Darwin is sixth. The remaining regional locations are peppered between the two.
The locations sitting in the bottom three spots in terms of affordability probably won’t come as a surprise. They are Canberra, Melbourne and Sydney. At $912,981 the price for Sydney is by far the highest. It is three times more than Regional SA’s price cap of $275,387 which is the lowest on the list and double that of many others.
In 11 of the 14 jurisdictions it is possible to get your foot on the property ladder with an initial outlay of less than $90,000 – assuming you jump in with a 10% deposit and are happy to pay for lenders mortgage insurance. This also includes stamp duty, mortgage registration and transfer fees. You could say it’s actually 11.5 jurisdictions because in Canberra first home buyers only need $87,249 thanks to the stamp duty concessions but other buyers need $107,270.
The monthly repayments as a percentage of income are quite affordable in the majority of locations – assuming you are buying with someone else – regardless of whether you are borrowing 80% or 90%. They range from 12.6% to 30.3% for a couple borrowing 80% of the property value and 14.6% and 35.3% for a couple borrowing 90%. Those on a single income will be a lot more stretched.
Brisbane . Ranked 10th
All the evidence suggests Brisbane is recovering in 2023 after a difficult 2022 – amid an atmosphere of optimism as preparations for the 2032 Olympics and Paralympics crank up. The underlying economic conditions are mostly positive, including Queensland’s nation-leading status on internal migration boosting population growth in South-East Queensland. There is also significant infrastructure spend under way.
Regional Queensland . Ranked 4th
The regional cities of Queensland comprise one of the nation’s strongest markets in resisting the downturn pressures of 2022. If you are seeking affordable properties in places with genuine growth credentials, Regional Queensland is one of the best places to look – but you need to focus outside South-East Queensland to find them. The Sunshine Coast and Gold Coast no longer offer affordable options.
Check out Regional Queensland’s Top 10 Bright Star suburbs →
Sydney . Ranked 14th
The Sydney property market has surprised many with prices and sales activity experiencing a revival. The Sydney upturn appears to be led by the top end of the market, which had previously been in decline. The data shows rising demand for apartments in near-city suburbs where houses are expensive but units are typically less than half the price.
Regional New South Wales . Ranked 8th
Regional New South Wales has a highly segmented market. Some locations have passed their cyclical peaks, others remain consistent and there are even locations that are thriving. The biggest recent change is a switch in market focus from sea change to hill change. Inland regional cities and country towns have continued to attract buyers seeking a more relaxed and affordable lifestyle.
Canberra . Ranked 12th
The Canberra market has long been known for its consistency of performance, but that reputation has been tarnished a little recently. Even with the price decline in the past 12 months, however, Canberra remains the most expensive capital city except for Sydney. It is challenging to find affordable houses but the apartment market provides a good alternative.
Melbourne . Ranked 13th
There is evidence the Melbourne market downturn has ended and recovery is under way. Perhaps the strongest boost to Melbourne’s future prospects for real estate growth is the news that it has overtaken Sydney as the biggest city in the nation. It can be difficult to find affordable houses close to the CBD but it’s possible to find affordable apartments.
Regional Victoria . Ranked 7th
The Regional Victoria market has weakened overall but still remains solid in the face of the downturn pressures. Regional Victoria has been a national leader of the ‘Exodus to Affordable Lifestyle’ trend but some of the areas that have benefited from this trend, such as Geelong, Ballarat and Bendigo, have become increasingly expensive so you may have to look further afield for affordable options.
Hobart . Ranked 9th
Hobart has experienced strong growth over the past few years. Historically it has been the cheapest of the capital cities for houses but today it’s more expensive for houses than Perth and Darwin, and on par with Adelaide. The growth of recent years means it’s become harder to find affordable options but it is possible – you may just need to head to the fringes.
Regional Tasmania . Ranked 5th
The Regional Tasmania property market has had a great run over the past five years but it has now dropped to one of the lowest levels in the past decade. There are now numerous locations with declining activity but there are still a few considered to be rising markets, most of them in the City of Launceston or in other parts of northern Tasmania.
Adelaide . Ranked 11th
Adelaide is one of Australia’s strongest property markets having maintained remarkably solid sales activity amid all the national economic disruption. The strength in the Adelaide market is in the lower end and the middle market. Even though prices have risen significantly over the past few years Adelaide is still one of the most affordable capital cities.
Regional South Australia . Ranked 2nd
It might surprise you to hear that Regional South Australia recorded the highest growth in house prices in the past 12 months. Regional SA has been resilient in the face of the downturn pressures that have afflicted the biggest capital cities and some of the high-profile regional markets across Australia. Despite this, it is still possible to buy a property for well under $300,000.
Perth . Ranked 3rd
At a time when the market in our biggest capital cities have been struggling, Perth has continued to thrive. It is still delivering strong sales activity and price growth and is the nation’s strongest property market. Perth is Australia’s second cheapest capital city for houses (Darwin is the cheapest) so there are a number of affordable locations with strong capital growth prospects.
Regional Western Australia . Ranked 1st
The Regional Western Australia market peaked early in 2022 and has continued to moderate recently. But there are still some busy growth markets and a growing number of consistent locations. Bunbury has taken over Mandurah as the key growth market in the south but the mining community of Kalgoorlie-Boulder now has the strongest market in Regional WA.
Check out Regional Western Australia’s Top 5 Bright Star suburbs →
Darwin . Ranked 6th
Darwin continues to be one of the busiest markets among the state and territory capital cities. It maintained a good level of sales activity throughout 2022 even when the biggest cities were faltering. Prices have held up well and there is ongoing strength in the markets of the Darwin, Palmerston and Litchfield LGAs, which jointly comprise Greater Darwin.
Important Information
This report has been prepared as a guide only and is not a recommendation about taking any particular action. We recommend that you seek professional advice from a suitably qualified adviser before electing to make any property investment decision.
All information about performance returns is historical. Past performance should not be relied upon as an indicator of future performance. The value of your investment may fall or rise. Forecasts about future performance are not guaranteed to occur.
A property investment may not be suitable for all people and the information in this report does not take into account your individual needs or investment risk profile. There are no certainties in property investment and as with any investment, there are always risks and variables that need to be taken into account.