Top 24 suburbs for under-$500,000 home buyers

One doesn't need "a war chest of millions" to find real estate in large cities

By Abel Riototar

20 Jun 2018

New research released by property site LocationScore identified suburbs in each capital city priced under $500,000 that are likely to climb higher because of rising demand. LocationScore studied eight key demand drivers across the capital to determine 24 locations where buyers are poised to boost values.

LocationScore director of research Jeremy Sheppard chose three suburbs in each major city with the best offerings for sub-$500,000 buyers.

“There’s no doubt affordability is a key measure when buyers are looking to invest. Our analysis proves you don’t need a war chest of millions to find real estate gold in our large cities,” Sheppard said in a statement.

The firm analysed suburbs in each capital city where the median house or unite prices falls under $500,000. It then scored the suburbs and sectors out of 100 based on eight key indicators — days on market, vendors discounting, auction clearance rates, vacancy rates, rental yields, percentage of renters vs. owner occupiers, level of online search interest and percentage of stock on market.

Sheppard refined the results further by removing any outcomes that could be influenced by statistical irregularities. “Based on this mix, we’ve listed the three affordable suburbs in each capital city with the greatest potential, so low-price buyers can stake their claim on the market as well as make the most of any future price growth,” Sheppard said.

Top suburbs

Sydney

State	Suburb	Post Code	Property type	LocationScore (out of 100)	LocationScore rating	Median price
NSW	Richmond	2753	Units	66	Good	$441,996
NSW	Jamisontown	2750	Units	60	Maybe	$422,348
NSW	Lakemba	2195	Units	59	Maybe	$427,617

Melbourne

State	Suburb	Post Code	Property type	LocationScore (out of 100)	LocationScore rating	Median price
VIC	Hallam	3803	Units	73	Good	$400,031
VIC	Kingsville	3021	Units	72	Good	$363,313
VIC	Heidelberg West	3081	Units	69	Good	$486,289

Brisbane

State	Suburb	Post Code	Property type	LocationScore (out of 100)	LocationScore rating	Median price
QLD	Deagon	4017	Houses	66	Good	$486,165
QLD	Capalaba	4157	Houses	66	Good	$486,739
QLD	Inala	4077	Houses	63	Good	$373,783

Perth

State	Suburb	Post Code	Property type	LocationScore (out of 100)	LocationScore rating	Median price
WA	Craigie	6025	Houses	59	Maybe	$438,413
WA	Shenton Park	6008	Units	59	Maybe	$444,500
WA	Morley	6062	Houses	53	Maybe	$486,129

Adelaide

State	Suburb	Post Code	Property type	LocationScore (out of 100)	LocationScore rating	Median price
SA	Queenstown	5014	Houses	73	Good	$397,887
SA	Ingle Farm	5098	Houses	71	Good	$336,729
SA	Albert park	5014	Houses	69	Good	$439,519

Hobart

State	Suburb	Post Code	Property type	LocationScore (out of 100)	LocationScore rating	Median price
TAS	Mornington	7018	Houses	87	Excellent	$332,461
TAS	Warrane	7018	Houses	81	Excellent	$286,953
TAS	Geilston Bay	7015	Houses	76	Good	$420,832

Canberra

State	Suburb	Post Code	Property type	LocationScore (out of 100)	LocationScore rating	Median price
ACT	Charnwood	2615	Houses	82	Excellent	$460,825
ACT	Ngunnawal	2913	Units	76	Good	$412,991
ACT	O’Connor	2602	Units	71	Good	$486,886

Darwin

State	Suburb	Post Code	Property type	LocationScore (out of 100)	LocationScore rating	Median price
NT	Woodroffe	830	Houses	61	Maybe	$386,038
NT	Gray	830	Houses	53	Maybe	$364,044
NT	Larrakeyah	820	Units	50	Maybe	$447,033