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Five affordable suburbs for investors and homebuyers priced under $550,000

After several months of rate rise-induced falls, home prices are on the up and up once again in much of the country as intense buyer demand spreads, according to national buyers’ agency Adviseable. 

But for homebuyers and investors on a tight budget, there are still pockets that offer prime opportunities to purchase an affordable property with good long-term prospects.

“In many parts of Australia, especially our biggest capital cities, it’s extremely difficult to find a property priced under $550,000 – but there are suburbs where affordable homes are still available,” Adviseable Property Buyer Kate Hill said.

According to the latest CoreLogic data, home prices nationally rose 2.9 per cent in the three months to July, with values jumping in every capital city over that quarter.

Prices in Sydney rose 4.5 per cent in the three months to July, while they leapt 4.2 per cent in Brisbane, two per cent in Melbourne, and 3.2 per cent in both Adelaide and Perth.

“As buyers’ agents, we’re currently working with a range of clients where budget is a main consideration for them,” Ms Hill said. 

The cost-of-living crunch and the burden of higher interest rates has forced many prospective purchasers to tighten their belts, she said.

Those active in the market face strong competition, though, with a lack of supply and a rapidly growing pool of buyers.

“It’s tough out there are the moment, with the shallow pool of available properties for sale attracting a lot of attention,” Ms Hill said. 

“You need only follow weekend auctions in most big cities to see the hammer coming down on some eye-watering prices. Many of the sales we’re seeing are well above reserve.”

Finding investment-grade stock isn’t impossible, but Ms Hill urged potential buyers to enlist the help of a qualified expert to help them uncover hidden gems.

“I’ve identified five suburbs across the country that offer opportunities worth exploring, but these are just a few of the promising areas a buyer’s agent can help sniff out.”

1. Armadale, Perth, Western Australia

Sitting some 30 kilometres southeast of Perth, charming Armadale offers a strong sense of community, amenity, and connection, all for an almost unbelievable price, Ms Hill said. 


But the word is getting out and buyers in search of an affordable home or an attractive investment are turning their attention here.

“The median house price of $338,500 has already risen by 12.8 per cent in the past year, while the median unit price of $290,000 is also up 7.8 per cent,” Ms Hill said.

“Investors can achieve solid gross yields right from the get-go, with the median house rent of $400 per week – up 14.3 per cent year-on-year – offering 6.1 per cent.


“The situation is just as rosy with units, where the median $377 per week delivers a 6.7 per cent yield.”

The West Australian Government is also investing in the region, with a major transformation of the Armadale rail line in the works, which will include a totally rebuilt station locally, she said. 

2. Darling Heights, Toowoomba, Queensland

Ms Hill said it’s obvious how this Toowoomba suburb got its name, with an abundance of natural beauty, elevated vistas, and a relaxed, peaceful vibe to boot.


“Far less tempered is the interest of investors, who see Darling Heights as a prime location to snap up a rental property – and it’s all thanks to the bustling University of Southern Queensland campus,” she said.

“The median house price here has surged by 19.4 per cent in the past year to hit $513,500 while the median unit price is $315,000,” Ms Hill said.

“A potential landlord could get a decent yield of 4.4 per cent from the median house rent of $440 per week, while the median unit rent of $340 per week delivers a gross yield of 5.6 per cent.”

High demand and a limited supply have seen unit rents climb 13.3 per cent in just a year, while house rents are up 12.8 per cent year-on-year.


“As well as the uni campus, Darling Heights is also just a stone’s throw away from the CBD. Its youthful vibe makes it a possible destination for first-home buyers, too,” Ms Hill said. 

3. Delacombe, Ballarat, Victoria


Ms Hill said this rapidly growing suburb on the southwestern fringe of Ballarat in regional Victoria is in the midst of a transformation thanks to an ambitious $50 million masterplan developed by the State Government.

“As part of the Big Housing Build scheme, more than 100 new modern and energy efficient dwellings will be built, sparking the construction of high-quality streets and open public spaces,” she said.

“Government agency Homes Victoria intends the masterplan to lay the groundwork for the long-term development of the suburb, benefiting current and future homeowners.”

Delacombe’s median house price of $540,000 has dipped 6.1 per cent over the past 12 months, largely in line with market trends seen in major regional areas, she said.

“That relatively affordable price tag will see first-home buyers, young families, and investors increasingly prioritise this patch,” MS Hill said.

“But rental prices are rising – the median house rent of $410 is up by 7.9 per cent in the past year.

“Detached dwellings dominate the suburb, so an accurate read on unit performance is unavailable.”

4. Munno Para, Adelaide, South Australia


Ms Hill said with an abundance of green space, safe streets, good amenities and plenty of parks, it’s no surprise Adelaide families favour Munno Para in the city’s northern suburbs.


“Despite the appeal, the median house price is just $390,000 – although it has leapt by 15.4 per cent in the past 12 months,” she said.

“First-home buyers are increasingly flocking to Munno Para because of its sense of community, affordable price tag and a relatively convenient proximity to the CBD via good road connections.

“Investors are sitting up and paying attention, too, with a median house rent of $420 per week offering a gross 5.6 per cent yield.”


Ms Hill said the government is continually planning for the suburb’s future growth and in recent times completed an upgrade of the Munno Para train station.

5. Crestmead, Logan, Queensland


Ms Hill said Crestmead is nestled within a peaceful pocket of the rapidly growing City of Logan, which is set to see its population balloon from 350,000 currently to 500,000 by 2034.


The suburb is favoured by families, with parks, greenspace, leafy streets, and a handful of good schools, including St Francis College, she said.

“It also boasts exceptional connectivity to both Brisbane and the Gold Coast thanks to its proximity to the Logan Motorway and Gateway Motorway interchanges,” Ms Hill said.

“The median house price of $524,000 has risen by 6.9 per cent in the past year. Despite sharp growth over recent years – the median was just $325,000 in July 2020 – it remains undervalued given its appealing attributes.”


The median house rent of $470 per week reflects this popularity, with a staggering 14.6% increase in the past 12 months. That delivers investors a 4.6 per cent gross yield, she said

“Among some exciting infrastructure projects is the mega Crestmead Logistics Estate – a $1.5 billion project delivering 650,000sqm warehousing, business and manufacturing space,” Ms Hill said.

“Construction of the final stages is set to be completed within the next few years.”

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