Units are seen as somewhat inferior to houses, but when looking at getting close to a CBD, the type of property doesn’t necessarily matter. Here are some affordable suburbs that are highly likely to attract tenants.
The latest instalment of the Property Pulse by CoreLogic has analysed unit values around capital cities and revealed the most affordable unit markets and how far they are from their respective CBD.
Unlike houses, which were covered in the previous Property Pulse, the general affordable nature of units mean overall the furthest affordable suburb from a CBD is under 20 kilometres, as opposed to over 75 kilometres for houses.
Despite the Australian dream of owning a house, Cameron Kusher, CoreLogic analyst, said that the housing market in the larger capital cities can be restrictive.
“As a result, an increasing number of buyers are choosing to purchase more affordable units which offer the ability for owners to live in more desirable suburbs at a lower price point than purchasing a house.”
Looking around the country, these are CoreLogic’s picks for affordable units closest to a CBD:
The closest affordable suburb to a CBD, which comes in as the furthest for all number one placings, is Lakemba, at a median value of $435,314 and is 12.4 kilometres away from the CBD. The top five suburbs, in fact, for Sydney are further away than any other capital city, with being the furthest away at 17.4 kilometres and a median value of $484,938.
Following a trend that becomes prominent further down the capital cities, units in the suburb of Melbourne have a median value of $487,071, and are located right in Melbourne’s CBD. The top five suburbs on the list are all located within four kilometres from the CBD.
Units in the suburb of Brisbane have a median value of $473,101 and are found right in the CBD. Other affordable unit markets can be found within a kilometre radius.
Like Brisbane, units in the South Australian capital city have a median value of under $500,000 and are close to the CBD. Adelaide units can be found for a median value of $420,871 and are based right in the CBD. Other affordable unit suburbs can be found within a kilometre radius.
Affordable unit markets in Perth close to the CBD can be found under a two kilometre radius, with the closest being the suburb of Perth with a median value of $419,148. Most of the affordable unit markets can be found either along the coast or the Swan River.
The unit market in Hobart is one of the few capital cities not to include the main capital city suburb itself, but the Property Pulse notes there are only three suburbs with a median unit value above $500,000 in Greater Hobart. The closest affordable suburb was West Hobart at a median value of $472,055 and is 1.5 kilometres away from the CBD, while the top five affordable suburbs are all under three kilometres from the CBD.
Similar to Hobart, there is only one suburb in all of Greater Darwin with a median unit value over $500,000. The closest to the CBD is Darwin City at a median value of $423,989 and is located right in the Darwin CBD. Like Hobart, the top five closest affordable suburbs are all under three kilometres away from the CBD.
The closest suburb to Canberra’s CBD is Dickson, with a median value of $416.393 and is 0.6 kilometres away from the CBD. The top five closest affordable unit markets to the CBD are all just over three kilometres away.