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The most affordable city for first home buyers isn’t what you’d expect
While Sydney remains the zenith of the Australian property boom, new research has revealed that it is in fact the most affordable capital city for first home buyers.
The most affordable city for first home buyers isn’t what you’d expect
While Sydney remains the zenith of the Australian property boom, new research has revealed that it is in fact the most affordable capital city for first home buyers.
According to PRD’s latest Affordable Living Property Guide, Sydney continues to be the most affordable city for liveability.
The report measures affordability through a number of criteria, such as liveability, investment return and future project development plans.
Arguably, the detail that the report gives the most weight to is the difference in price between properties located within the Metro area of each city and liveable suburbs within a 20-km radius of the CBD. This means that the title of the most affordable city is bestowed on the one that presumably allows Aussie to save the most by choosing to live outside the Metro area.
“This is good news for first home buyers, who may believe they have to sacrifice liveability aspects in gaining access into suburbs with a lower median property price than Sydney Metro,” the report said.
Key affordable and liveable suburbs in Sydney that the report highlighted include Peakhurst, Jannali and Caringbah.
PRD noted that this finding may surprise many, as Brisbane and Hobart are originally thought of as the more affordable capital cities.
But, according to the real estate company, while this might be true from a median property price perspective, many affordable suburbs in both capital cities fail to satisfy other criteria such as liveability, investment return and future project development plans.
Other findings of the report include a swing towards affordability for Hobart.
In PRD’s previous half-yearly report, they found that Hobart property buyers needed to pay an extra 30 per cent for houses and 14 per cent for units on top of the Metro premium to secure a liveable suburb. In the latest data, this data has shifted to 14 per cent below the premium of living in the Hobart Metro area, for both houses and units.
As a result, PRD said, Hobart is no longer the least friendly market for first home buyers.
“For Hobart residents, this is a definite win and an exciting progression in the property market. This opens more possibilities for first home buyers, who now have more suburbs to choose from and do not need to sacrifice liveability items to ensure they can afford the median price.”
Meanwhile, Melbourne unit buyers are said to be the most disadvantaged “as they must be prepared to pay on par to the Melbourne Metro median price to secure liveable suburbs”.
PRD noted that 40.8 per cent of homes sold within the Melbourne Metro area were in the premium price bracket of $1,200,000 or above, while 31.2 per cent of units in the same region sold for $750,000 or more.
“This confirms the market has shifted to a premium market. Affordable options are available; however, first home buyers must act quickly,” they said.
On the other hand, PRD found that Brisbane continues to be the capital city that provides house buyers and investors the greatest bang for their buck.
Key affordable and liveable suburbs in Brisbane that the report highlighted included Ferny Grove, Rochedale South, Warner, Taigum and Springwood.
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