In their recent Month in Review report for July 2021, Herron Todd White reviewed the performance of each capital city throughout the COVID period, highlighting just how far a $700,000 spend can go.

The latest report examined buying opportunities across capital cities based on recent sales, and used a base price of $700,000 to provide like-for-like comparisons of buying power.

This figure sits just below the median price across the combined capital cities, which is currently $740,475.

So, how far can $700,000 take you in each capital city?

Sydney

Median price: $1,017,692

As the most expensive capital city market today, Sydney doesn’t offer many options for buyers with a $700,000 budget. Regardless, this amount could still get them:

• 250 sq m to 360 sq m of vacant land in Western Sydney, particularly in Box Hill and Marsden Park
• Detached home and granny flats in Ashcroft, Miller, Sadlier and Busby
• New or near-new two- to three-bedroom houses in Marsden Park and Penrith
• Dated dwellings in Airds, Claymore, Kearns, Blaimount, Ambarvale, Campbelltown and Bradbury
• One- to two-bedroom units in Parramatta, Ed Square, Denham, Edensor Park, Miranda, Caringbah, Engadine, Cronulla, Rushcutters Bay, Newtown, Hillsdale, Botany, Manly, Dee Why and Lane Cove
• Apartments and strata units in Lewisham, Leichhardt, Drummoyne, Marrickville, Summer Hill, Rozelle, Forest Lodge, Camperdown, Erskineville and Balmain
• Waterfront dwellings on 1,000 sq m of land in Lower Macdonald
• Car spaces in Potts Point

Herron Todd White director Shaun Thomas said that the sub-$700,000 market, being an affordable entry point, should continue to perform moving forward, but as it is “generally hotly contested”, he warned that it could also be more sensitive to interest rate movements.

Melbourne

Median price: $762,068

A $700,000 budget won’t get anyone a house in Melbourne City, but Herron Todd White director Perron King said it’s definitely possible to get luxurious two-bedroom apartments in one of the many “trending” inner city suburbs. Among the current options for buyers are:

• Units or apartments in Collingwood, Williamstown, Essendon and Footscray
• Three- to four-bedroom houses in Clyde, Cranbourne, Langwarrin, Ringwood, Ringwood East, Bayswater North, Heathmont, Croydon, Boronia, Kalkallo, Coburg, Armstrong Creek, Mount Duneed and St Leonards
• Detached housing on a large parcel of land in Point Cook, Tarneit, Truganina and Melton

Looking ahead, Mr King expects buyer demand to be centred around larger land parcels further from the CBD as changes in lifestyle and working arrangements shift buyer sentiment.

Brisbane

Median price: $598,615

With Brisbane experiencing a “ripple effect capital growth” over the past months — where value gains seen in the CBD typically radiate outward — affordable properties within the $700,000 range have shifted further to the outer reaches, Herron Todd White director David Notley said.

The upcoming Olympic Games are set to make the Brisbane market even hotter in the years to come, but if you have $700,000 lying around, here are the properties in the price range for right now:

• New and near-new four-bedroom houses in North Lakes, Burpengary, Mango Hill, Newport, Pallara, Wynnum West and Hemmant
• 1960 to 1980 brick- or war-style homes in Everton Park, Arana Hills, Ferny Hills, Banyo, Geebung, Nudgee and Upper Mt Gravatt
• Near-bayside properties in Redcliffe, Capalaba, Thorneside and Alexandra Hills
• Units and townhouses in southeast Queensland

For those eager to take advantage of these opportunities, Mr Notley advised “sticking with the fundamentals” — that is, buying properties near infrastructure as near to the CBD as possible in order to minimise risk.

Adelaide

Median price: $516,454

Adelaide currently stands as the second most affordable capital city property market, and as such, a $700,000 budget could mean one or more properties in varying condition depending on location, according to property valuer Nick Smerdon. Among the options available are:

• Units and townhouses in Norwood
• Detached dwellings in Prospect, Magill, Woodville
• “Cream of the crop” estates on 1,000 to 3,000 sq m land in One Tree Hill and Angle Vale
• Coastal properties in Moana and Seaford Heights

Mr Smerdon advised buyers to focus on the bottom end of the inner ring and the top end of the middle ring, as they historically have had increased levels of demand and have the greatest prospect for price growth in the medium to short term.

Perth

Median price: $532,393

What can $700,000 get you in the sixth most liveable city in the world and the third most affordable capital city? A house and a $200,000 change in your pocket, according to Herron Todd White director Chris Hinchliffe.

From inner city apartments to regional lifestyle, here are some of the options for house hunters in Perth:

• Townhouses, villas and units in Leederville, Inglewood and Burswood
• Detached “character” dwellings in Victoria Park and East Victoria Park
• Four-bedroom houses on 600 to 900 sq m blocks in Morley, Kingsley, Warwick, Hamersley and Greenwood
• Properties on allotments ranging from 1,000 sq m to five hectares in Darlington, Jarrahdale
• Seaside dwellings in Busselton

Despite a strong demand for housing across Western Australia, there are indeed still bargains to be had, according to Mr Hinchliffe. He has advised buyers to work with professionals with local knowledge in order to ensure true value for their money.

Darwin

Median price: $486,054

Officially the most affordable capital city property market, Darwin offers sound opportunity for both home buyers and investors — backed by few vacancies and a stable history of strong returns, according to valuer Peter Nichols.

Alice Springs, in particular, was touted as the best area to invest in, with several options within the $700,000 price range, including:

• Two- to three-bedroom properties surrounding the golf course in Desert Springs, Mount Johns, Braitling, Araluen and Larapinta
• Units and duplexes across Alice Springs

Although offering a secure income stream, Darwin only has little prospect for capital growth in the short to medium term and is therefore unadvisable for investors chasing strong capital growth, Mr Nichols did concede.

Canberra

Median price: $793,872

Canberra has defied expectations over the past year, rising to the top of the pyramid and inching closer to Sydney in terms of median price. But as hot as the property market is, $700,000 can still get you:

• Three-bedroom dwellings on 500 to 800 sq m blocks in Tuggeranong (Gordon, Conder and Banks, Richardson, Chisholm and Gilmore)
• Townhouses in Oxley

Valuer Marc Allegretto said buying at the peak of the market can be riskier than buying in a stable market, but buyers can still maximise opportunities by following good due diligence and conducting thorough market research.

Hobart

Median price: $621,102

About a year ago, a $700,000 budget could buy two dwellings or attached units with solid returns in Hobart and outer lying areas. Today, it can be a little more challenging, according to property valuer Mark Davies. Among the limited options for buyers with this budget are:

• Detached houses or units in Claremont, Austins Ferry, Brighton, New Norfolk, Oakdowns, Midway Point and Sorell

Although the sub-$700 market is expected to perform well into the near future due to affordability and demand exceeding supply, a purchase within this price range may get even harder to achieve moving forward, Mr Davies said.