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The capital city suburbs where it’s cheaper to buy than rent

By Bianca Dabu
05 May 2021 | 1 minute read
Darwin

With the recent revelation that more than half of Australian homes will be cheaper to buy than rent over the next 10 years, REB has taken a closer look at the city suburbs set to see this phenomenon.

The REA Insights Buy or Rent Report found that despite recent price growth, market conditions remain in favour of buyers, with around 57 per cent of dwellings across Australia being cheaper to buy than rent over the next decade, based on an annual price growth of 3 per cent.

The Northern Territory recorded the highest proportion of dwellings that are cheaper to buy at 99.1 per cent, followed by Queensland at 89.2 per cent, Tasmania at 85 per cent, Western Australia at 81 per cent and South Australia at 79.8 per cent. 

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New South Wales and Victoria have much lower shares of dwellings that are cheaper to buy at 39.3 per cent and 34.7 per cent, respectively.

According to REA economist Paul Ryan, the more favourable buying conditions outside NSW and Victoria prove that affordability is currently among the main drivers of demand in the property market.

“As a result, it is likely we will continue to see strong regional price growth,” he said.

Low mortgage rates are also influencing buying conditions, with buyers getting more comfortable borrowing large amounts following the Reserve Bank of Australia’s commitment to maintain low rates until at least 2024, Mr Ryan added.

“Given low interest expenses, moderate property price growth will likely offset the additional costs of owning. 

Here are the top city suburbs where it’s cheaper to buy than rent: 

 

Sydney

Rank

3-bedroom houses

2-bedroom units

1

Tacoma 

Median price: $492,872

Median rent: $435

Kangy Angy

Median price: $198,823

Median rent: $340

2

Rocky Point 

Median price: $565,283

Median rent: $450

Stanhope Gardens

Median price: $336,432

Median rent: $425

3

Warragamba

Median price: $532,205

Median rent: $425

Vineyard

Median price: $252,080

Median rent: $355

 

Melbourne

Rank

3-bedroom houses

2-bedroom units

1

Waterford Park

Median price: $379,914

Median rent: $330

Frankston North

Median price: $419,369

Median rent: $415

2

Rockbank

Median price: $476,683

Median rent: $370

Bangholme

Median price: $375,489

Median rent: $368

3

Mickleham

Median price: $491,077

Median rent: $380

Williams Landing

Median price: $388,875

Median rent: $370

 

Brisbane

Rank

3-bedroom houses

2-bedroom units

1

Kilcoy

Median price: $299,474

Median rent: $360

Brisbane City

Median price: $508,928

Median rent: $525

2

Lockrose

Median price: $267,298

Median rent: $335

Woolloongabba

Median price: $428,708

Median rent: $470

3

Waterford

Median price: $359,110

Median rent: $375

Kangaroo Point

Median price: $489,224

Median rent: $505

 

Adelaide

Rank

3-bedroom houses

2-bedroom units

1

Elizabeth South

Median price: $168,814

Median rent: $245

Glanville

Median price: $242,210

Median rent: $340

2

Gawler West

Median price: $235,200

Median rent: $290

Walkerville

Median price: $368,493

Median rent: $420

3

Munno Para

Median price: $263,004

Median rent: $310

Sturt

Median price: $226,139

Median rent: $318

 

Perth

Rank

3-bedroom houses

2-bedroom units

1

Hilbert

Median price: $287,256

Median rent: $330

Wanneroo

Median price: $175,417

Median rent: $355

2

Meadow Springs

Median price: $360,369

Median rent: $370

Merriwa

Median price: $219,695

Median rent: $340

3

Lakelands

Median price: $324,126

Median rent: $340

Coodanup

Median price: $123,255

Median rent: $275

 

Hobart

Rank

3-bedroom houses

2-bedroom units

1

Clarendon Vale

Median price: $285,250

Median rent: $365

Glebe

Median price: $367,388

Median rent: $495

2

Gagebrook

Median price: $265,480

Median rent: $340

Herdsman Cove

Median price: $225,979

Median rent: $325

3

Risdon Vale

Median price: $347,229

Median rent: $385

Mornington

Median price: $356,149

Median rent: $405

 

Darwin

Rank

3-bedroom houses

2-bedroom units

1

Zuccoli

Median price: $426,905

Median rent: $550

Darwin City

Median price: $363,492

Median rent: $485

2

Muirhead

Median price: $498,843

Median rent: $580

Anula

Median price: $196,684

Median rent: $340

3

The Narrows

Median price: $412,274

Median rent: $515

Rosebery

Median price: $260,038

Median rent: $380

 

Canberra

Rank

3-bedroom houses

2-bedroom units

1

Coombs

Median price: $591,756

Median rent: $565

City

Median price: $601,111

Median rent: $685

2

Denman Prospect

Median price: $588,355

Median rent: $555

Reid

Median price: $441,282

Median rent: $540

3

Moncrieff

Median price: $598,754

Median rent: $535

Turner

Median price: $531,500

Median rent: $585

The capital city suburbs where it’s cheaper to buy than rent
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