Homebuyers could own their home faster if they purchased in suburbs that were cheaper than their more popular neighbouring counterparts, a recent Westpac report has revealed.
Westpac has recently released its Hidden Gem Suburbs report, which reveals the top 10 suburbs across each capital city where Australians could buy a home at a lower price than in its more popular neighbouring suburb.
Compiled in partnership with RP Data, the report lists the top 10 most searched suburbs on realestate.com.au in the last 12 months and their corresponding suburbs with lower median house or unit prices.
“Buyers who want to truly ‘own’ their home sooner can find real value by simply considering a suburb that is just a stone’s throw from their first preference,” said Gai McGrath, general manager of Retail Banking at Westpac.
“For example, if you wanted to buy a house in the third most popular suburb in Sydney, Baulkham Hills, you could consider travelling just eight kilometres away to Seven Hills, where the average house price is 34 per cent cheaper.
“You’d still be in the booming north west of Sydney, but you could own your home 18 years and five months sooner and save $435,028 in both purchase price and interest repayments over time.”
According to the report, the most popular suburb in Melbourne is South Yarra, with a median house value of $997,3923. The hidden gem suburb was Cremorne, which had a median house price of $700,471. Buyers would subsequently make a saving of 29.8 per cent.
Director of hockingstaurt South Yarra Will Walton said the report reflected the decisions of buyers who aspired to live in a particular suburb and due to price, considered alternatives in the area.
“They might start in South Yarra but they may well find they end up buying in Richmond, Cremorne, Abbotsford or St Kilda,” he said.
“There’s a whole circle around South Yarra, but they do come to South Yarra first because that seems to draw their attention. Then they do seem to look further afield - say another three kilometres away.”
In Sydney, Castle Hill is the most popular suburb for houses, with a median price of $832,686, though Dural is the hidden gem according to Westpac and RP Data, with a median price of $792,637.
South Yarra, with a median house value of $997,393 is the most popular suburb in Melbourne. However, Cremorne is the hidden gem, with homes selling for around $700,471.
Kangaroo Point in Brisbane is the more affordable neighbour to New Farm - Westpac and RP Data's most popular suburb. The median house price in New Farm is $1,019,194 whereas in Kangaroo Point, the median house price is $631,679.
Meanwhile in Perth, Scarborough is the most popular suburb, with a median house price of $700,173. However, investors can save over $80,000 if they purchase in Innaloo, where the median price is just $618,891.
In Adelaide, Stepney is the hidden gem suburb, with a low median house price of $526,041 and Norwood is the most popular suburb, with a median price of $733,636.
Nightcliff is the popular suburb in Darwin for homes, while Coconut Grove was established as the hidden gem according to the report. The median house price in Nightcliff is $843,448, but the median house value in Coconut Grove is $676,442.
Hobart's hidden gem is Taroona, with a median house price of $415,102. Buying in Taroona will save you just under $200,000 compared to the most popular suburb in Hobart, Sandy Bay, which has a median house value of $594,597.