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Affordable Yet Thriving: The Sub-$750k Suburbs Experiencing Significant Price Increases In the past year, property prices have surged in most major cities, but there are still several suburbs where homes remain affordable despite substantial price hikes. According to PropTrack data, there are budget-friendly suburbs in capital cities, all boasting median property values under $750,000, where prices have experienced the most significant growth over the last 12 months. Despite these substantial increases, homes in these areas are still priced below Australia's record-high median home value, which was reached last month. Approximately half of the suburbs on this list have prices under $600,000, making them appealing to both first-home buyers and investors. In Greater Sydney, all suburbs with a median house value under $750,000 are situated in the outer west, Blacktown, or the Central Coast, illustrating the challenge of finding affordable housing near the CBD of Australia's most https://lnkd.in/gqR4Z246

“There’s been a marked increase in dwelling approvals over the past few months, but this was coming off a low base,” Resolve Property Solutions Pty Ltd buyers agent, Peter Gavalas, says. “We still have a significant supply deficit in Perth compared to population growth.” Gavalas says population growth remains a key driver. "Perth has seen significant population increases over the past few years, largely due to its relatively affordable cost of living and economic opportunities compared to other major Australian cities." Western Australia’s population growth is fueled by interstate migration and a flourishing economy. The state recorded the largest population growth in 2023, up 3.3 per cent, according to the ABS. Read more below. Author: Joel Robinson ------------ 📣 Was this update of interest to you?🔥 Join 17,000+ of your residential property development colleagues who follow Urban on LinkedIn. We regularly post free insights about: 💡  New project launches and updates 💡  What buyers are searching for on AU’s largest off-the-plan buyer platform 💡  Weekly interviews with industry leaders Follow Urban.com.au or connect with our CEO Mike Bird to keep your finger on the pulse of the apartment and townhouse market.

📊 June 2024 Housing Market Update with Stephen Barfoot 📊 Auckland Housing Market Remains in Recovery Mode Despite the arrival of winter, the Auckland housing market showed resilience in June, with sales prices surpassing those in May. “From a price perspective, June’s trading was positive with the median price at $1,020,000 hovering around where it has been for the previous three months,” said Barfoot & Thompson Director, Stephen Barfoot. 🏠 Key Highlights: - Median Price: $1,020,000 (2.5% higher than June last year) - Average Sales Price: $1,236,336 (4.5% up from May and 12.6% ahead of last year) - Sales Numbers: 681 (down a quarter from May but showing a seasonal decline) - First 6 Months Sales: 4,499 homes (28.1% increase from last year) - New Listings: 1,506 with 5,736 properties on the market (nearly a third higher than last June) “In the top price segments, 61 sales were above $2 million, with 19 exceeding $3 million. This demonstrates the strength of the market, particularly in higher price brackets,” added Stephen Barfoot. The Auckland housing market remains in recovery mode, with stable prices and higher sales numbers indicating positive momentum. 🌟 #HousingMarket #Auckland #RealEstate #MarketUpdate #BarfootAndThompson

As rental demand surges in pandemic boom towns, property owners are navigating a dynamic market. With rising rents and eviction challenges, it's a pivotal time to explore investment opportunities in these thriving communities. https://lnkd.in/gBGiNPNT

Melbourne's housing market has performed poorly since the onset of the pandemic, pushing its home values 33.1 percent lower than Sydney's—the widest gap since October 2000 and well below the 19.7 percent average difference over the past 20 years, according to CoreLogic. Melbourne's dwelling values are now 8.8 percent cheaper than Brisbane's, the first time such a discount has been recorded since the series started 30 years ago. Historically, Melbourne's home values had been higher by an average of 13.7 percent over the past two decades. Meanwhile, the city's property values have fallen 10.8 percent below the combined capital city benchmark, the lowest since 2007. Perth's home values are just 3.4 percent away from matching Melbourne's prices, while Adelaide only needs to rise by more than 2 percent to overtake Melbourne. Over the past 20 years, Melbourne property prices have been stronger by 14.6 percent compared to Perth and 31.4 percent higher than Adelaide. Given this context, Melbourne's undervalued housing market could become more attractive to investors compared to other capital cities.

Sydney's Millennials are finding refuge in Adelaide's inner circle suburbs, where the cost of a comfortable family home remains under $1m, starkly contrasting the $2m+ price tags in Sydney's inner metropolitan circles. It's not uncommon to spot 5 to 10 NSW number plates at house auctions, reflecting the influx of buyers from New South Wales. A recent observation in Norwood, an inner city suburb of Adelaide, revealed that nearly 30% of the car park at the new Coles Supermarket was occupied by vehicles with Victorian and NSW plates. This migration trend highlights the appeal of Adelaide's affordability and lifestyle amenities. The shortage of affordable housing in Sydney demands innovative solutions. The metropolitan inner circle of Sydney lacks enough "inclusive mid-rise apartments" near railway stations, with an annual shortfall of around 25,000 quality residential-grade mid-rise apartments annually for the next 5-7 years. Embracing advanced modular construction using Cross-Laminated Timber (CLT) from renewable sources is crucial to meeting this demand sustainably and urgently. This requires scalability, which currently slows inefficient custom construction methods. Because of this lack of scalability, the affordable housing crisis cannot be solved. As "fast to market", CLT offers thriveconstruct.com.au. Up to 75% faster than slow, inefficient custom construction methods. Adelaide's housing market is attracting attention for its affordability and infrastructure, presenting a compelling alternative for those seeking a balance between cost and quality of living. Sydneysiders are exploring new horizons, driven by the need for accessible and affordable sustainable housing solutions. #Sydneycrisis #affordablehousing #millennials #CLT

I have had a working theory for the last 10 years that the lack of housing supply in the Bay Area would result in more homogenous pricing. It appears that my theory is correct. This shift is most evident when you examine traditionally premium neighborhoods against areas once considered less desirable. In places like Santa Clara and San Mateo counties, the gap in price per square foot between historically high-end areas and more affordable markets is closing fast. For instance, consider East San Jose (zip code 95122) and Willow Glen (95125). In 2016, the price per square foot in Willow Glen typically exceeded East San Jose by 35-40%. Today, that gap has narrowed to around 15-20%, with some sales in East San Jose now reaching over $850 per square foot, compared to Willow Glen’s range of $1,000-$1,150 per square foot. This convergence is even more stark when you look at Cambrian (95124) compared to Los Gatos. Historically, Los Gatos commanded a significant premium, with price per square foot averaging 40-45% higher than Cambrian. Now, homes in Cambrian are selling for upwards of $1,000 per square foot, while Los Gatos remains in the $1,200-$1,400 range, narrowing the difference to roughly 20-25%. This trend isn’t confined to Santa Clara County. In Contra Costa County, cities like San Ramon, Pleasanton, and Pleasant Hill have also seen significant price growth, bridging the gap with blue-chip neighborhoods like Alamo, Danville, Lafayette, and Orinda. Back in 2016, the price per square foot in Alamo or Danville was typically 50-60% higher than in Concord or Pleasant Hill. Today, the difference has shrunk to closer to 30-35%, with many sales in these formerly lower-tier markets now surpassing $700 per square foot, while top-tier markets hover around $1,000 per square foot. As demand continues to outpace new housing creation, buyers who previously could only afford the lower end of the market are bidding up prices in those areas, pushing them closer to levels seen in premium neighborhoods. The once-clear distinctions between “desirable” and “affordable” areas are eroding, as competitive bidding wars and scarcity dictate market behavior across all regions. Comparing today’s pricing dynamics to 2016, we see the percent difference in price per foot between premium and emerging markets tightening dramatically. What used to be a 40-60% gap is now often just 20-30%, with this trend especially visible over the last 18-24 months as remote work and lifestyle shifts have further scrambled demand patterns. The bottom line is that the Bay Area’s extreme supply constraints have reshuffled the deck. As buyers extend their reach into every corner of the region, we’re witnessing a leveling out of home prices, making even historically overlooked neighborhoods less affordable and, ultimately, more competitive. This dynamic should be top of mind for developers and investors looking to identify opportunities or understand the broader trends reshaping the market.

Suburbs in Victoria Show Mixed Trends in Housing Prices In the last quarter, housing prices in Victoria showed minor changes, but some suburbs stood out for their growth. The western areas of Melbourne, as well as Greater Geelong and Greater Bendigo, led the way in growth while offering more affordable options for buyers. According to the Real Estate Institute of Victoria, in the quarter ending June 30, 2024, metropolitan house prices in Victoria fell by 1.5%, while units barely decreased by 0.1%. In contrast, regional house prices increased by 0.2%, although regional units fell by 1.4%. In Geelong, three suburbs showed notable price growth. Little River increased by 20.4% to $1,505,000, Indented Head rose by 10.3% to $955,000, and South Geelong grew by 10.1% to $906,250. Other suburbs like Drysdale and Bell Post Hill also saw increases of 5.9% and 2.7%, respectively. Greater Bendigo also showed strong growth with Elmore rising by 23.9% to $472,000 and Long Gully by 12.7% to $445,000. Golden Square and White Hills both rose by 4.0% to $520,000, and Lockwood South by 2.1% to $970,000. In western Melbourne, the municipalities of Melton and Brimbank performed well. Suburbs such as Rockbank, Hillside, Melton West, and Melton South were among the top twenty in quarterly growth. Melton stood out as the most affordable suburb with a price of $474,500. In Brimbank, Keilor East, Taylors Lakes, and St Albans were also among the top suburbs in terms of price growth. During the fiscal year 2024, housing prices in Melbourne's mid-zone increased significantly. Eltham rose by 9.4% to $1,300,000 and Glen Waverley by 8.5% to $1,770,500. In the unit market, Sandringham and Blackburn stood out with increases of 25.9% and 15.8%, respectively. Overall, there were more transactions and auctions this year. There were 39,110 auctions, a 25.5% increase from the previous year, and 156,550 properties were sold, a 10.8% increase. Jacob Caine, president of REIV, commented that the market is well balanced for both buyers and sellers. #RealEstate #HousingMarket #VictoriaRealEstate #MelbourneHousing #GeelongProperty #BendigoRealEstate #PropertyGrowth #AffordableHousing #SuburbTrends #MarketUpdate #PropertyPrices #HomeBuying #InvestmentProperty #RealEstateTrends #HousingPrices #MarketReport

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Why Melbourne Could Lead the Housing Market Recovery? Melbourne's housing market is poised for a strong recovery as interest rates drop, thanks to improved affordability and rising rental yields. Despite recent declines, experts like AMP's Shane Oliver believe Melbourne’s extended period of underperformance sets the stage for a robust rebound. Suburbs like Brunswick West have already seen value increases, and undervalued areas like Footscray and St Kilda East show promise. While the exact timing is off course uncertain, Melbourne’s market, with its potential for long-term growth and investor appeal, could outshine other Australian cities in the upcoming housing market cycle.