The 10 best affordable suburbs in Sydney 2024

There are plenty of great locations in Sydney where you can buy a home for less than $$958,630. This was the cut-off price we used for our ‘Bright Star’ suburbs in the New South Wales capital. (For more on why we chose this see our full report.)

Of course, price isn’t the only consideration when selecting a location to buy property. Lifestyle benefits and prospects for growth should also be on the checklist. In Canstar’s Best Affordable Suburbs Report we used five key metrics – sales volumes, price growth, vacancy rates, infrastructure and proximity to work and amenities – to identify the affordable suburbs that are desirable and likely to grow in value over time. Check out our list below.

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The 10 best affordable suburbs in Sydney

•  Ashfield
  
• Casula
  
• Guildford
  
• Minto
  
• Mount Druitt
• Newtown
  
• Padstow
  
• Penshurst
  
• St Marys
  
• Westmead
  

Ashfield

The Inner West precinct is one of the most vibrant in a busy Sydney market, and in Ashfield, about 8km from the CBD, houses typically cost around $2 million, but apartments in the $700,000s. Buyer demand is rising, with sales being dominated by apartments. Ashfield has a commuter train station, Sydney Private Hospital and a number of parks.

Casula

This well-situated suburb in the City of Liverpool ticks a number of important boxes, including commuter train links, the M5/M7 intersection, proximity to the amenities in the Liverpool CBD, major employment hubs and green space along the Georges River. Houses cost close to $1 million and units provide more affordable options around $700,000. Vacancies are below 1% and homes sell within one month here usually.

Guildford

The Cumberland LGA, a neighbour of Parramatta, has a busy market and
Guildford is one of several suburbs where demand is rising and house prices have recorded double-digit annual growth. Dwelling sales are evenly split between houses and apartments, with units less than half the price of houses. Vacancies are 0.6%, well below the Sydney average. Guildford has a commuter train station and nearby amenities include two golf courses.

Minto

People buy homes in Minto because it offers good infrastructure and amenities at prices that are affordable by Sydney standards (median prices $860,000 for houses and $580,000 for units). Buyer demand is rising. and houses typically sell within three weeks Strong rental demand means vacancies are just 0.4% – one of the lowest rates in Greater
Sydney. This area has multiple schools, a train station, a number of parks and some major commercial-industrial jobs nodes.

Mount Druitt

This is one of major hubs for western Sydney. Mount Druitt has the
Blacktown Mt Druitt Hospital, a major TAFE campus, Westfield Shopping Centre and a commuter train station. Houses are generally in the $800,000s and units in the $400,000s, with units comprising 70% of dwelling sales in the past 12 months. They generally sell in four weeks. Vacancies are low at 0.6% and yields are above average for Sydney.

Newtown

An inner-city location beside the University of Sydney campus and with train stations, creates plenty of appeal for Newtown. Buyer demand and prices are rising, with 330 dwelling sales in the past year and properties typically selling inside four weeks. Demand for apartments is increasing, with prices in the $700,000s and a $1.7 million median for houses. The vacancy rate is 0.7%.

Padstow

The more expensive Sydney becomes, the more buyers turn their attention to middle-market areas like Canterbury-Bankstown, which offers a good location, strong transport links, good amenities and relative affordability. Padstow is attracting rising demand and homes are selling quickly here. The M5 Motorway, commuter rail, a TAFE campus and major green spaces around the Georges River are all part of the appeal for Padstow.

Penshurst

The Georges River municipality is another of middle-market precincts in Greater Sydney where buyer demand is growing and homes are selling in around three weeks. The median prices in Penshurst are $1.69 million for houses and $630,000 for apartments. Unit sales outnumber house sales. Penshurst sits beside the regional hub of Hurstville, which includes two major shopping centres, and has a commuter train station.

St Marys

The City of Penrith in the far west of Sydney has a strong identity of its own, boosted by the success of its rugby league team. St Marys is attracting buyers for its affordability and infrastructure, with both houses and units selling within three weeks and rental demand pushing vacancies below 1%. This area has a commercial-retail hub, train and motorway (M4) links, and extensive green spaces.

Westmead

Buyer and tenant demand in Westmead has a lot to do with the Westmead
Hospital complex and Western Sydney University campus, as well as the nearby Parramatta CBD. Commuter rail and the M4 Western Motorway provide good transport links. Apartments dominate the market here, with over 300 unit sales in the past 12 months at a median price of $550,000.

The best affordable suburbs in Sydney

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Source: www.canstar.com.au. Prepared on 22/01/2024. Based on a selection of suburbs’ median prices, growth and rent figures provided by Hotspotting by Ryder. Initial outlay figures include the deposit, stamp duty, mortgage registration and transfer fees; and lenders’ mortgage insurance (LMI) premium for the 10% deposit scenarios. Stamp duty calculated based on an owner occupier purchase of an established dwelling. LMI premium based on Helia LMI Premium Calculator for an owner occupier borrower and a loan term of 30 years. Monthly repayments calculated based on the average variable interest rates of 6.5% (20% deposit) and 6.8% (10% deposit) and a loan term of 30 years. Interest rates based on the average owner occupier, principal and interest variable rate for a loan of $600,000 over the past year, rounded to the nearest 0.1%. Percentage of income based on the average total income by Greater Capital City Statistical Area (ABS Personal Income, 2020-21), adjusted by the ABS Wage Price Index (Sep-2023) for each state.

Cover image source: Elias Bitar/Shutterstock.com