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These are the top 10 affordable suburbs in New South Wales

Despite the COVID-19 virus and related impacts on the Australian economy, the Sydney property market is still performing strongly.

However, there are still pockets of affordable houses in New South Wales that are around 70 per cent of the median price for the capital city, according to Pete Wargent, co-founder of national property buyer’s agency network BuyersBuyers.com.au.

Mr Wargent of BuyersBuyers said that “with mortgage rates still close to the lowest on record, all states offer some opportunities for those with a reasonable buffer and a level of employment security”.

“With first homebuyers still active, and now competing with investors for a low level of stock on the market, we expect affordable suburbs to be sharply in focus” Mr Wargent said.

RiskWise Property Research has undertaken an in-depth analysis into the housing market identifying the top 10 affordable suburbs in NSW.

The analysis clearly showed that detached houses represented solid buying opportunities for those with long-term strategies.

Mr Wargent of BuyersBuyers said “prices have increased over the past year, but there are still areas where bargains can be had and if you have a long-term strategy you can expect solid capital growth over the coming few years”.

“There are decent opportunities for buyers looking for houses with high land value as a proportion of the property, and a strong component of scarcity, especially if they intended to hold on to the property for several years or longer”.

“In addition, the current ultra-low interest rates have created a unique environment where buying a house in many areas was cheaper than paying rent on one” Mr Wargent said.

The top 10 suburbs for affordable houses in New South Wales included a range of suburbs at around 70 per cent of the median capital city house price for the state.

Figure 1 – The top 10 suburbs for affordable houses in New South Wales

The Central Coast region and Sydney’s Outer West areas, including the Blue Mountains, have made it into the table with houses coming in between $800,000 and $900,000, compared to Greater Sydney’s median of around $1.2 million.

For example, Greenfield Park in Sydney - Southwest has a median price just under $800,000 and solid price growth of 32 per cent in five years, with a distance of only around 30km from the city centre.

In fact, both the outer western and southern suburbs of Sydney offer more affordable properties with relatively good access to the CBD, and this is a key driver for homebuyers.

Meanwhile, the increasingly popular Central Coast suburb of Bateau Bay has a median price of $842,000 and basked in surging 62 per cent price growth over the past five years.

Mr Wargent of BuyersBuyers said that the Central Coast region has been a strong drawcard to homebuyers seeking lifestyle, and as more people can work remotely is gaining even more of a reputation as having good buying potential.

Mr Wargent said that more affordable areas have been sharply in focus as the number of first homebuyers in the market had recently surged to decade highs.   

However, Mr Wargent stressed while this is the case for houses in these areas, units continued to carry a materially high level of risk, on average.

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Please Note: This list is based on suburbs that are around 70% of the median price and suburbs with at least 1,000 houses in the existing stock. It should be noted that the lower end of the market presents different types of risks.

ENDS

For all media enquiries, contact BuyersBuyers.com.au Media Manager Alison Sollory, alison.sollory@buyersbuyers.com.au

Visit www.buyersbuyers.com.au

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