New research has revealed that home buyers can still find relatively affordable properties in well-equipped suburbs located within 20 kilometres of city centres. This finding comes despite a broader trend of declining housing affordability across major urban areas. The report, titled Smart Moves: Capital City Edition Second Half 2025, was released by PRD Real Estate on March 15, 2024, highlighting opportunities in the current property market.
The study identifies suburbs where median property prices are lower than the overall metro area, alongside a pipeline of commercial and infrastructure projects. These areas also boast rental yields and vacancy rates that are on par with or better than their metro counterparts. Crucially, amenities such as schools, public transport, shopping centres, healthcare, and green spaces are available within a five-kilometre radius.
Highlighted Suburbs for Home Buyers
For those seeking a house in Sydney, the report points to several western suburbs near Parramatta. Notable mentions include Merrylands, with a median house price of $1.31 million, Chester Hill at $1.305 million, and Granville at $1.165 million. In Melbourne, potential buyers can consider St Albans, priced at $685,000, Sunshine North at $756,000, and Heidelberg West at $760,000.
Brisbane offers options such as Slacks Creek at $760,000, Bray Park at $850,000, and Inala at $800,000. According to Dr. Diaswati Mardiasmo, Chief Economist at PRD, the recent property boom in Brisbane has complicated the search for affordable and liveable options.
Dr. Mardiasmo noted, “The way that we structure this report, it’s not just about finding you the cheapest place to live; it’s also about making sure there’s at least some development in those areas.” The focus on a 20-kilometre radius from city centres reflects that many jobs are concentrated within this distance, making these suburbs more appealing for potential buyers.
Opportunities in the Unit Market
For individuals considering unit purchases, the report highlights more affordable options compared to houses. In Sydney, Bankstown leads with a median unit price of $585,000, followed by Lakemba at $500,000 and Parramatta at $600,000. In Melbourne, Bundoora is priced at $470,000, Broadmeadows at $485,000, and Box Hill at $540,000. In Brisbane, Logan Central stands out at $425,000, Zillmere at $640,000, and Sherwood at $680,000.
Dr. Mardiasmo indicated that buyers may have better prospects with units, stating, “The prospect of buying a house in comparison to a unit is definitely much less.” Increased availability and ongoing development of units make them a more accessible option for many buyers.
The findings come on the heels of separate research from Cotality, which indicated that housing affordability has reached its worst levels on record. Several forecasters predict that property prices may rise in the coming year, underscoring the urgency for potential buyers to act quickly.
Dr. Mardiasmo warned that many suburbs listed in previous reports have fallen off the affordability rankings as prices have increased. If interest rates remain stable through 2026, the likelihood of these suburbs being featured again in future affordability reports may improve. Conversely, further interest rate cuts could hinder their affordability status.
In Sydney, Daniel Starr, Director of Starr Partners, remarked that Merrylands presents family homes near the Parramatta CBD at more competitive prices. Starr highlighted the area’s transformation, noting the influx of restaurants, a large shopping centre, and a train line to the city. Demand from first home buyers has been driving up prices, particularly in the unit market and for entry-level homes up to $1.3 million.
“I genuinely feel that it is underrated,” Starr stated, emphasizing its potential as an affordable base for communities unable to afford more traditionally sought-after areas like Burwood and Strathfield.
In Melbourne, Surinder Sarain, Chief Executive of Westside Real Estate, noted that St Albans attracts buyers due to its large lots suitable for development into townhouses or apartments. Proximity to the airport, Victoria University, and shopping at Sunshine are added benefits. Sarain pointed out that houses can be purchased for between $700,000 and $750,000, and with renovations costing up to $30,000, these properties can be transformed into quality family homes.
He added, “I think they don’t [appreciate it] and that’s why the prices are still low. But a lot of smart investors who know what is coming are getting a bargain at the moment.”
As property dynamics continue to shift, prospective buyers are encouraged to explore these emerging opportunities before market conditions change.
