PRD Real Estate has named Sydney as the most affordable city for affordability on the east coast, despite people having to cash out a much larger figure than across its capital city counterparts.

The report – based on investment potential, public transport links, shopping centres, parks and suburbs – crowns Sydney as the most affordable as a result of the hefty price difference between homes based in the Metro and within 20 km of this most inner area.

This does not, however, mean that the price of a home in Sydney is any lesser than that in say Brisbane – in fact it is almost three times greater.

However, PRD has also revealed the top three suburbs for those looking to purchase a house, based on both affordability and liveability across Sydney, Melbourne, Hobart and Brisbane.

Sydney

Peakhurts

Located about 16km from the Sydney CBD.

Median House Price $1,200,000

• 2-Bed Median Price $910,000
• 3-Bed Median Price $987,500
• 4+ Bed Median Price $1,280,000

According to PRD, this waterside suburb is continuing to prove its liveability by offering low crime, various parklands, public transport options, schools, medical facilities, plus proximity to major amenities such as Westfield Mortdale.

Investors have benefited from average house rental yields of 2.4 per cent (on-par with Sydney Metro), and a low vacancy rate of 2.4 per cent (well below Sydney Metro’s 3.4 per cent), which shows its value to a range of buyers.

Jannali

Located about 20km from the Sydney CBD.

Median House Price $1,200,250

• 2-Bed Median Price $1,051,000
• 3-Bed Median Price $1,110,000
• 4+ Bed Median Price $1,242,500

The suburb boasts a very low unemployment rate of just 2.7 per cent and an estimated $3.7 million in projects scheduled for the first half of 2021.

This includes the development of six townhouses and five dwellings. The suburb recorded strong median price growth of 18.8 per cent  annually, and boasts a very low vacancy rate of just 0.9 per cent, making it attractive to investors.

Caringbah

Located about 19km from the Sydney CBD.

Median House Price $1,375,000

• 2-Bed Median Price $1,233,000
• 3-Bed Median Price $1,300,000
• 4+ Bed Median Price $1,450,500

Strong median house price growth of 14.5 per cent annually is good news for home owners, while investors also have reason to take interest in the suburb, returning 3.2 per cent rental yields (above Sydney Metro’s average of 2.4 per cent) and offering a low vacancy rate of 1.4 per cent (well below Sydney Metro’s 3.4 per cent).

With $28.9 million of projects commencing in the first half of 2021, Jannali is set to receive spillover benefits from a range of projects such as foreshore landscaping of the Woolooware Bay Town Centre, Kingsway & Hinkler Avenue Mixed Building, and approximately 56 new housing stock added to the market.

Melbourne

Greenvale

Located about 20km from the Melbourne CBD.

Median House Price $728,000

• 2-Bed Median Price $590,000
• 3-Bed Median Price $682,000
• 4+ Bed Median Price $770,000

Greenvale, north of Melbourne CBD, recorded median price growth of 1.1 per cent from 2019 to 2020-21. It is the most affordable of the three affordable and liveable suburbs chosen.

Those with a property investment, currently benefit from rental yields of 3.6 per cent, above Melbourne Metro’s 2.6 per cent. This is in conjunction with a lower vacancy rate of 3.5 per cent, below that of Melbourne Metro’s 4.4 per cent. Thus, investors can be confident of quicker occupancy in the rental property.

Bellfield

Located about 10km from the Melbourne CBD.

Median House Price $800,000

• 2-Bed Median Price $664,000
• 3-Bed Median Price $751,000
• 4+ Bed Median Price N/A

Bellfield is the closest affordable and liveable suburb to Melbourne CBD. A house rental yield of 2.8 per cent is attractive to many investors in the area, particularly as it is accompanied by a low vacancy rate, which at 2.4 per cent is significantly lower than Melbourne Metro’s 4.4 per cent.

A total of $32.8 million of projects are planned in the first half of 2021, with a key focus on infrastructure and residential projects. This will not only improve liveability for residents but also create local jobs in the construction phase.

Mulgrave

Located about 19.9km from the Melbourne CBD.

Median House Price $850,000

• 2-Bed Median Price $626,000
• 3-Bed Median Price $787,000
• 4+ Bed Median Price $918,000

Mulgrave is located south-east of Melbourne CBD, recording a median house price growth of 1.2 per cent from 2019 to 2020-21. Mulgrave recorded a vacancy rate of 1.8 per cent, well below Melbourne Metro’s 4.4 per cent. This shows a healthier rental demand, thus highly conducive for investment. With a rental yield of 2.7 per cent, above Melbourne Metro’s rental yield, and a lower entry price point, Mulgrave gives more bang for buck.

$29.9 million of projects are planned to commence in the first half of 2021, with a focus on residential and commercial. Only three townhouses are planned, creating an opportunity for boutique developers.

Brisbane

Springwood

Located about 18.8km from the Brisbane CBD.

Median House Price $530,000

• 2-Bed Median Price N/A
• 3-Bed Median Price $509,000
• 4+ Bed Median Price $600,000

Investors are now benefitting from above average rental yields of 4.0 per cent, higher than Brisbane Metro (3.8 per cent). Springwood recorded a low vacancy rate of 0.8 per cent, below that of Brisbane Metro (1.5 per cent), indicating a healthier rental demand.

Springwood is within proximity of Springwood shopping centre, Springwood State School, public transport and the M1 Highway, connecting it to major cities such as Brisbane and Gold Coast. A proposed $26.3 million of development for the first half of 2021, with a large focus on commercial projects.

Rochedale South

Located about 19km from the Brisbane CBD.

Median House Price $545,000

• 2-Bed Median Price $542,000
• 3-Bed Median Price $522,000
• 4+ Bed Median Price $600,000

Rochedale South provides first home buyers with an attractive entry price, whilst also assuring capital investment growth, as median house prices grew by 4.6 per cent from 2019 to 2020-21.

A house rental yield of 4.3 per cent is attractive to investors, being above Brisbane Metro’s benchmark of 3.8 per cent. Vacancy rates were recorded at 1.2 per cent, which indicates higher rental demand as it is lower than Brisbane Metro’s 1.5 per cent.

Ferny Grove

Located about 12km from the Brisbane CBD.

Median House Price $653,000

• 2-Bed Median Price N/A
• 3-Bed Median Price $600,000
• 4+ Bed Median Price $695,000

Ferny Grove, north of Brisbane CBD, recorded median price growth of 5.3 per cent from 2019 to 2020-21.

This is the highest price growth out of the three affordable and liveable suburbs chosen, indicating the area’s strong potential. Investors are currently benefiting from rental yields of 4.3 per cent, above Brisbane Metro’s 3.8 per cent. This is combined with an extremely low 0.3 per cent vacancy rate, below Brisbane Metro’s 1.5 per cent, thus setting Ferny Grove as an ideal investment suburb.

Hobart

Howrah

Located about 5.1km from the Hobart CBD.

Median House Price $579,000

• 2-Bed Median Price $624,000
• 3-Bed Median Price $551,500
• 4+ Bed Median Price $642,000

The suburb recorded median house price growth of 5.8 per cent annually, in good news for property owners. Investors have also benefited from an extremely low vacancy rate of just 0.4 per cent (below Hobart Metro’s 0.6 per cent), and average house rental yields of 4.0% (above Hobart Metro’s 3.9 per cent).

Liveability criteria are well met, with low crime rates in the area, as well as access to key roads, buses, waterfront and parks, Shoreline Plaza shopping centre, plus nearby health care and schools. Altogether, these factors highlight Howrah’s attractiveness to investors and residents alike.

Kingston

Located about 5.8km from the HobartCBD.

Median House Price $585,000

• 2-Bed Median Price $495,000
• 3-Bed Median Price $532,750
• 4+ Bed Median Price $659,000

Kingston’s median house price recorded solid growth of 9.9 per cent annually, while investors saw average house rental yields of 4.9 per cent.

Further, an extremely tight vacancy rate of just 0.3 per cent, signal quicker and more secure cash flow to investors. Low unemployment of just 4.8 per cent is an indication of a healthy local economy, as is the $9.1 million project development pipeline for the first half of 2021.

Geilston Bay

Located about 5.5km from the Hobart CBD.

Median House Price $531,000

• 2-Bed Median Price $387,500
• 3-Bed Median Price $510,000
• 4+ Bed Median Price $610,500

Median house price growth of 3.1 per cent annually, is good news for property owners, while investors have also benefited from a very low vacancy rate of 0.9 per cent, and average rental house yields of 4.6 per cent. This altogether highlights the value on offer to both investors and residents.