Login
iscover
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.
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 |
You are not authorised to post comments.
Comments will undergo moderation before they get published.