Prices are rising again following declines in 2022, with affordable homes becoming more difficult to find. However, in some suburbs, home prices are still fairly modest despite their proximity to their city centres.
Recent PropTrack data shows that national home prices have grown by 3.8% since September 2022. This was driven predominantly by capital cities, where prices are up 4.8%.
Interest rate hikes led to the price falls seen in 2022; however, the recent slowdown in rate rises by the Reserve Bank of Australia has improved buyer sentiment.
Demand from buyers is strong, and the rebound in migration, both interstate and overseas, is also contributing to this heightened demand.
Although Sydney and Melbourne have seen more properties come to market, the growth in demand is outpacing supply.
In Brisbane, Adelaide and Perth, there are still limited choices for buyers, which has increased competition for available properties.
These factors have driven up home prices and propelled them to a new peak.
While prices continue to grow, there are still several suburbs close to city centres with relatively affordable homes.
To uncover these areas, we looked at the inner-ring suburbs, those in the closest third to their respective CBD, with the lowest median sale price.
| Suburb | GCCSA | Distance from CBD | Median sale price | Median of respective capital city | Difference |
| Westminster | Greater Perth | <10km | $450,000 | $588,000 | -23% |
| Nollamara | Greater Perth | <10km | $458,000 | $588,000 | -22% |
| Cannington | Greater Perth | <10km | $505,000 | $588,000 | -14% |
| Rocklea | Greater Brisbane | <10km | $510,000 | $770,000 | -34% |
| Cloverdale | Greater Perth | <10km | $510,000 | $588,000 | -13% |
| Queens Park | Greater Perth | <10km | $530,000 | $588,000 | -10% |
| Bentley | Greater Perth | <10km | $540,000 | $588,000 | -8% |
| Redcliffe | Greater Perth | <10km | $550,000 | $588,000 | -6% |
| Belmont | Greater Perth | <10km | $558,000 | $588,000 | -5% |
| Kewdale | Greater Perth | <10km | $580,000 | $588,000 | -1% |
| Morley | Greater Perth | <10km | $582,000 | $588,000 | -1% |
| Embleton | Greater Perth | <10km | $595,000 | $588,000 | 1% |
| Kilburn | Greater Adelaide | <8km | $600,000 | $691,000 | -13% |
| Moonah | Greater Hobart | <5km | $601,000 | $700,000 | -14% |
| Carlisle | Greater Perth | <10km | $610,000 | $588,000 | 4% |
Westminster and Nollamara, which are located under 10kms from the Perth CBD, have the most affordable houses at just $450,000 and $458,000, respectively. They were almost 25% cheaper than the capital city median.
Houses in Rocklea were the cheapest among all suburbs within 10kms of Brisbane CBD. The median price of a house is $510,000. Buyers are paying a third less than the Brisbane median.
Cloverdale and Queens Park in Perth were also quite affordable, with houses costing $510,000 and $530,000 respectively.
| Suburb | GCCSA | Distance from CBD | Median sale price | Median of respective capital city | Difference |
| Bayswater | Greater Perth | <10km | $276,000 | $400,000 | -31% |
| Glendalough | Greater Perth | <10km | $284,000 | $400,000 | -29% |
| Wembley | Greater Perth | <10km | $287,000 | $400,000 | -28% |
| Osborne Park | Greater Perth | <10km | $310,000 | $400,000 | -23% |
| Brooklyn Park | Greater Adelaide | <8km | $332,000 | $450,000 | -26% |
| Travancore | Greater Melbourne | <11km | $340,000 | $590,000 | -42% |
| Victoria Park | Greater Perth | <10km | $340,000 | $400,000 | -15% |
| Maylands | Greater Perth | <10km | $348,000 | $400,000 | -13% |
| Inglewood | Greater Perth | <10km | $355,000 | $400,000 | -11% |
| Cloverdale | Greater Perth | <10km | $360,000 | $400,000 | -10% |
| Nollamara | Greater Perth | <10km | $365,000 | $400,000 | -19% |
| Carlton | Greater Melbourne | <11km | $368,000 | $590,000 | -38% |
| Tuart Hill | Greater Perth | <10km | $368,000 | $400,000 | -8% |
| Kewdale | Greater Perth | <10km | $369,000 | $400,000 | -8% |
| Flemington | Greater Melbourne | <11km | $370,000 | $590,000 | -37% |
Bayswater and Glendalough, which are located close to the Perth CBD, have the lowest median price among all inner-ring suburbs for units. The median price of a unit is $276,000 and $284,000, respectively, which is around 30% less than the Perth median.
Units in Brooklyn Park in Adelaide and Travancore in Melbourne were also modestly priced, with the median at less than $350,000.
While there has been a recent uplift in new listings, the shift in buyer sentiment and rebound in migration is seeing demand outpace the growth in supply.
We expect this to contribute to the upward trend in home prices, with more markets likely to reach new peaks in the coming months.
