Revealed: 43 suburbs where you can buy a house for less than $400,000

Buying a home in a capital city is out of reach for most young Aussies, but there are still some metro suburbs scattered across the country where the Australian Dream on a budget could become a reality.

Exclusive PropTrack data shows that while opportunities to buy an affordable home in a capital city location have rapidly dwindled over the past decade, there are still 43 suburbs with median home prices below $400,000.

Darwin had the most entries on the list, with 22 of the Northern Territory suburbs making the list.

Berrimah and Lee Point were the only two localities with house prices under $400,000, while remaining suburbs – Driver, Moulden, Karama, Gray, Malak, Bakewell, Coolalinga, Leanyer, Marrara, Millner, Nightcliff, Wagman, Larrakeyah, Brinkin, Johnston, Rosebery, Coconut Grove, Bellamack, Woolner and Darwin CBD – only offered up units under $400,000.

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Room with a view. This one bedroom apartment at 1206/43 Knuckey Street, Darwin City could be yours for $299,000.

Modern and spacious. 7/188 Hawker Place, Hawker, ACT is on the market with a price guide of $345,000

When looking at Australia’s major capital cities, Melbourne was the top contender with eight suburbs on the list.

In Albion, located on the city’s outskirts around 37km from the CBD, buyers can still snag a unit for $281,000, according to the data, followed by Notting Hill ($335,880), Travancore ($366,000), Melton South (378,500), Camobellfield ($379,000), Melton ($380,000), Essendon North ($386,750), and Flemington ($395,000).

In Adelaide, buyers had a choice of seven affordable suburbs under $400,000.

Elizabeth Vale presented the best value for money with a median unit price of $315,000, followed by Enfield ($335,000), Glandore ($345,000), Kilburn ($375,000), Kurralta Park ($385,000), Rosewater ($385,000) and Salisbury ($395,000).

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It could do with a reno but this two-bedroom unit at 30/6 Loades Street, Salisbury, SA in on the market for just $320,000

With a price guide of just $350,000, this renovator’s delight at 31 Tottenham Road, Gagebrook, TAS didn’t last long on the market.

Sydney also still has three metro suburbs under $400,000 – Normanhurst, Vineyard and Carramar, while the ACT has two – Lyons and Hawker.

There was just one suburb under $400,000 – Gagebrook – recorded for Hobart.

REA Group economist Anne Flaherty said each of the suburbs presented a historic, final opportunity to secure a home under $400,000.

She said prices were unlikely to drop to pre-Covid levels, even if more housing stock were to become available.

“The fact that the list is so short and centred in some of the more affordable locations, particularly Darwin, really just shows that there is very little out there for people looking for affordable options with good transport amenity into the cities,” she said.

“If you think about how dramatically we’ve seen the number of suburbs below $400,000 drop off over the last five to 10 years, it’s very reasonable to assume that we’re going to see fewer and fewer of these suburbs.

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REA Group economist Anne Flaherty predicts that Australian capital cities will have run dry of homes under $400,000 by the end of next year.

“Access to metro (areas) increases demand and with further price rises projected, it’s completely feasible that in two years time, we won’t have any suburbs left on that list.”

Ms Flaherty said she expected the list would catch many buyers by surprise.

“Going back only a few years, $400,000 seemed like a very reasonable price but now, to get something at that level, you typically have to look very far away from a capital city and in suburbs where prices are discounted because of a lack of access to things like a metro network or easy road access.”

In 2025, national house prices are expected to experience a modest increase.

REA Group’s PropTrack predicts a 1 to 4 per cent increase in dwelling prices, citing high interest rates and the anticipation of further rate cuts.

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