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Where Can You Find the Cheapest Houses in Australia in 2024

No one can resist a good deal. In particular, on a substantial investment like a home? 

Check out the regions in Australia with the lowest home prices in 2022. 

But before that… 

Where can I find reasonably priced properties in Australia?

According to ABS projections, Australia’s median house price dropped to $921,500 in the first six months of 2022 from the highest record of $942,000 in the previous March quarter. 

The average cost of a home in Australia is $1.73 million, with New South Wales being the most expensive state by a significant margin ($1.7 million).

What Influences Australia’s Real Estate Market?

WHERE CAN YOU FIND THE CHEAPEST HOUSES IN AUSTRALIA.

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The average cost of a home in Australia depends on various factors. 

  • Location: Houses near the water and public transportation are more expensive than those further from town, where basic conveniences and necessities may be scarce.
  • Unique details about the house, such as its square footage, how many bedrooms it has, and the number of bathrooms, as well as the building supplies that went into its construction; 
  • Supply and Demand: Prices rise when there is strong demand for homes but a limited supply. Buyers have more ability to bargain for a better rate due to the oversupply of properties and a fall in demand; 
  • Rising home prices have multiple causes, including mortgage interest rates and economic expansion. House prices soar when interest rates are low because consumers can afford to borrow more significant amounts of money and make smaller monthly payments.

Is It a Good Time to Invest in Australian Real Estate in 2022?

Over the past decade, average home prices have increased, but in the second quarter of 2022, prices dropped in five major capitals. 

In Sydney, home prices fell by 2.2%, the greatest of any major city. Only at Adelaide (0.4%), Pert (0.2%) and Darwin (0.5%) did prices rise slightly.

Although this may seem good to prospective homeowners, the RBA has raised the interest rate on cash for the fourth time, significantly impacting borrowers’ ability to take out loans. 

Mortgages may become unaffordable if interest rates rise, making it harder for the country’s already debt-burdened middle class to join the majority of households in Australia.

As a result, the home’s value may drop significantly in just a few short months after purchase. 

How about paying for the item you want to buy? Look at these illuminating manuals:

  • The Mortgage Application Process
  • Investing your retirement funds in a home
  • A home loan with a gift deposit

Where Can I Find the Most Affordable Australian Real Estate?

South and Western Australia, where tourism and mining play a significant role in driving economic growth, are home to most places on the list. 

Mount Magnet, Andamooka, and Norseman, three suburbs in Western Australia (WA), the most preferred state in Australia for mineral exploration, are prime examples.

Only three of these places are in New South Wales (NSW), including the hottest town, Menindee, with a record-high temperature of 49.7 °C. 

On the other side, Swan Bay is home to a low crime rate, a large percentage of green space, and is only 200 kilometres from Sydney. However, due to the high percentage of senior citizens in the population, there may be better options for newlyweds.

The above list shows that most homes advertised for less money are in less convenient locations. 

The most affordable real estate in Australia is in Sandstone, Western Australia, a city that is 600 kilometres away from Perth but nearly two hours away from the closest grocery store. 

A few reasonably priced options are available for those who want to live closer to the heart of major cities.

AU’s Most Affordable Suburbs by the Year 2022

1. Elizabeth North, South Australia 

WHERE CAN YOU FIND THE CHEAPEST HOUSES IN AUSTRALIA.

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Elizabeth North, located north of Adelaide, is among the least expensive Australian suburbs to own a house. 

The Gawler, Australia Railway line provides a convenient route to downtown Adelaide and connects the neighbourhood to other major cities. Many young people (20-29) and single parents are in this area.

2. Cannington, West Australia

WHERE CAN YOU FIND THE CHEAPEST HOUSES IN AUSTRALIA.

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With median home prices of roughly $445,000, this city is among Perth’s more inexpensive suburbs. 

This neighbourhood is wonderful for families because of the abundance of schools, childcare centres, and baby businesses, and it also has among the lowest home costs in Australia. The largest mall in Perth metropolitan area, Westfield Carousel, is also in this town.

3. Bridgewater, TAS

WHERE CAN YOU FIND THE CHEAPEST HOUSES IN AUSTRALIA.

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The high concentration of low-income households and social housing in Bridgewater contributed to the neighbourhood’s previously unsavoury reputation. 

It also used to be home to the nation’s largest number of smokers. Recently, however, it has become a pleasant area to reside in, with the addition of about 18 public parks and numerous restaurants, bars and cafes.

4 . Risdon Vale, Tasmania

WHERE CAN YOU FIND THE CHEAPEST HOUSES IN AUSTRALIA.

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Risdon Vale, ten kilometres from Hobart, Tasmania’s capital and often ranked among Australia’s greatest locations, has some of the country’s cheapest housing options. 

Despite its modest size, this suburb may only have a population of 3,000, but it boasts a thriving community and abundant recreational, cultural, and entertainment venues. Houses in this area sell in an average of 8 days on the market because of their low price.

5. Tingalpa, Queensland

WHERE CAN YOU FIND THE CHEAPEST HOUSES IN AUSTRALIA.

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If you’re looking for a great place to raise a family in Brisbane, consider this neighbourhood (9 out of 10). The neighbourhood has many parks, other green spaces (over 30 total), and many schools. 

The demographic breakdown of Tingalpa is as follows: 61% permanent residents, 16% those between the ages of 30 to 39, and 19% administrative staff.

6. Maidstone, Victoria

WHERE CAN YOU FIND THE CHEAPEST HOUSES IN AUSTRALIA.

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Most of Maidstone, a suburb of Melbourne, consists of residential neighbourhoods. Most residents are young families (20-29 years old) living below the poverty line (53% of the population). 

The Medway Country Club occupies a sizable portion of the area, making it an excellent golf destination. While the home prices aren’t rock bottom, they are low compared to other Australian cities.

7. Evatt, ACT

WHERE CAN YOU FIND THE CHEAPEST HOUSES IN AUSTRALIA.

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People who want to avoid the hectic pace of Canberra (as well as its expensive housing prices) and continue to reside close to the capital can consider Evatt, with its tranquil neighbourhoods and natural and green landscapes. 

Remember that most people who call Evatt home are professionals in their forties and fifties who pay $2,100 monthly on their mortgages.

8. Creedon Street

The ad on realestate.com.au makes it abundantly apparent that the home is not livable as-is and that viewings cannot be scheduled. 

The property will likely need extensive repairs or even demolition. This is also why no images of the property’s interior exist. If you still want it after reading this, know you’ll have 563 square meters to construct your new house.

If you want to build a cottage on your property but want to spend at most $29,000, this gives you room to maneuver. 

The Hotels, state parks, museums and local art galleries are just a few of the local highlights in the town. Are you thinking of investing in a rental property at Broken Hill? The median rent is $260 per week, and the average home value is $130,000.

9. Lot 905 Street of Hollys

Want to take your chances on finding opal in Australia’s outback? Head to Coober Pedy. You can save a lot of money travelling to a town 846 kilometres from Adelaide along the Stuart Highway. 

Coober Pedy is famous for its dugouts or underground homes, but this offering is nice and toasty above ground. The listing agent calls it a “loved normal one-bedroom above-ground dwelling in the ‘old miners’ shanty style…available for approximately property value only.”

For $45,000, what would you get? Only one bedroom is on the 1287 square meter freehold plot, but there is a five-space car park and a large-drop restroom.

10. Mandalay Avenue Number Blocks 24/61-79

Although “houses” is in the name, we think this apartment in Magnetic Island, near Cairns, is the real deal. 

You can get this for about $45,000 if you’re willing to make do with a studio. This vacation studio is located in a complex with all the trappings of a resort, including a children’s playground, tennis court, swimming pool, and barbecue area. On-demand restaurants and a bar are also available.

The home can make a fantastic vacation spot, with the bonus of renting it out while you are out of town. It’s up-to-date and chic, with a newly renovated kitchen, bathroom, and furniture. You should check this out.

11. Mount Magnet

WHERE CAN YOU FIND THE CHEAPEST HOUSES IN AUSTRALIA.

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The listing agent characterises the rental property as a highly presentable investment home needing only minor TLC, 28 Watson Street, Mount Magnet, WA. We find this optimistic, but at $40,000, we’re not complaining. 

Mount Magnet is located in a gold-mining country about 573 kilometres northeast of Perth. 

According to the listing, locating a place to rent in Mount Magnet is incredibly difficult because of the strong demand from residents and investors alike looking for safe lodging. The potential payoffs are sky-high as a result. Do you need any more context than that?

12. Parap

WHERE CAN YOU FIND THE CHEAPEST HOUSES IN AUSTRALIA.

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Even though it’s not a residence, this Darwin flat has one bedroom and costs only $95,000. If you buy this investment home, you will have “…spacious recently floored and newly painted rooms and a private bathroom,” according to the description. 

The property offers a pool, outdoor lounging areas, laundry and kitchen facilities, and costs residents around 230 dollars weekly.

13. Wakool 

Are you done with Sydney? Are you looking to escape the daily grind? How about moving to Wakool, population 297, located on the west Riverina, approximately 791 km from Sydney? 

A three-bedroomed, person-bathroom, detached house measuring 1,012 sq. ft. is available for $50,000. Seriously! “renovator’s joy in finding that large space in a peaceful rural town,” says the listing. Isn’t that tempting?

14. Sandstone; 30 Hack Street

You may buy a house in Sandstone, another gold-rush period town with a population of 89, for only $65,000. Located on a corner lot of 1,596 square feet (160 square meters), this home features two bedrooms and one bathroom. 

15. Peterborough, Bourke Street

A $45,000 stone house with three bedrooms and a history of preservation? Peterborough, South Australia, is 220 kilometres north of Adelaide, right? In addition to the gas stove, a slow-burning wood fireplace stands on its own in the kitchen. 

This property features a one-car garage, two garden buildings, a workshop area, a storage place, a woodshed, and a chook across its 1,210 square meters of outdoor space. Ideal for a weekend in the country!

16. Dingo Normanby St.

Having a claim to fame as a resident of Dingo, Queensland (pop. 340) must be pretty sweet. This spacious three-bedroom property features a huge backyard and is located along the Queensland Highway, 148 kilometres west of Rockhampton. 

The best part is that it’s a house in the Queenslander style, which, following some work, could be rented to regional mining teams. The estimated value is $70,000, but remember that it’s negotiable, so you can get it for even less.

 17. Deakin St.

Do you long for solitude, perhaps in a location some 395 kilometres north of Melbourne? The village of Beulah in Victoria’s southern region of Mallee is worth a visit if you’re interested. 

Compared with the other listings, this one’s nearly $100,000, which might seem expensive. However, consider the value you’d be getting for that sum.

There are three bedrooms, a living room, a dining room, a kitchen featuring an electric stove, a sleek bathroom, plus an inbuilt conditioner in this lovely heritage brick property with a backyard. 

The land is about 989 square meters in size. 

As long as you are okay living in Beulah, you’ll agree that there’s a lot of potential here.

Where can I find a list of the least expensive suburbs in the country?

WHERE CAN YOU FIND THE CHEAPEST HOUSES IN AUSTRALIA.

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Home costs have risen over the last year, but creative shoppers can still find deals. Many people are also taking advantage of the new pandemic’s landscape alterations. They may now choose from various suburbs if they work remotely.

RiskWise Properties Research reports that even now, there are suburbs whose typical home price is only about 70% lower than the average home price in a major metropolis. 

These neighbourhoods are inexpensive and conveniently located near the CBDs (or the Southeast Corridor in Queensland).

Suburbs in less central areas tend to be less expensive, but there are drawbacks to purchasing a home at the bottom of the market.

NSW

Sydney’s Far West districts and central coast, Illawarra, and Blue Mountains were identified as more inexpensive housing markets in New South Wales, with the average house prices at around $800k and $900k. This contrasts with Greater Sydney, where the average house price is $1.2 million.

For instance, Blaxland, located in the Blue Mountains region, has an average home price of less than $850,000 despite experiencing impressive growth in capital of 41 per cent over the last five years. 

Blaxland is located around 60 kilometres from Sydney’s CBD, making it an inconvenient commute for individuals who work there. 

Despite this, many people now work with more flexible schedules, and plenty of job alternatives exist outside central Sydney. Decent detached homes are still available today for roughly $800,000, even though the most attractive properties in the area have increased in price.

Victoria

Certain areas on Victoria’s Mornington Peninsula and Geelong are considered more affordable than Greater Melbourne, with average home prices well above $900k. However, in the last year, Mornington’s price increases have quickened.

Both areas are conveniently close to the central business district and have seen price increases of roughly 50% in the last five years.

Cranbourne North is affordable for first-time homebuyers because the average home price is less than $650,000. It’s around 40 miles (64 kilometres) from Melbourne’s CBD to the southeast suburb.

Queensland

The more inexpensive areas in Queensland that still provide convenient access to the CBD are Moreton Bay and Logan, despite Greater Brisbane’s typical property price of roughly $650,000.

Detached homes in the Greater Brisbane area are seeing significant price increases. Nonetheless, there continues to be a chance of purchasing within Acacia Ridge if you have an expenditure of about $500,000.

Median home prices in Acacia Ridge, a suburb of Brisbane around 15 kilometres south of the CBD, rose by about 27% then. Even though the average house cost in this suburb is nearing $500k, plenty of more reasonably priced options remain.

Southern Australia 

Adelaide North featured the largest concentration of cheap dwellings in the state. Both fresh supplies and the wider real estate market are currently minimal, indicating that the average home value in Adelaide may shortly surge near $600k. 

The Metropolitan Adelaide average house cost is currently around $550,000. Even with this, many Adelaide suburbs offer affordable housing options in the form of houses in the outlying suburbs.

Western Australia

Although the Perth sale has underperformed over the last five years, some areas still offer affordability and have shown substantial expansion over the same period.

With a typical property price of about $550k, Perth has room to grow as the state’s economy develops with its natural assets cycle.

The territory of Australia’s Capital

With an average cost of nearly $900k, Australia’s Capital Region housing has fared particularly well despite the pandemic.

The country’s City Territory has substantial GDP growth and a work market where the government employs most people. Therefore, it is relatively immune to shocks. However, the city has faced its first true test in the recent lockdown.

Tasmania

Even though Hobart’s average home value has increased to nearly $500k, there are still many areas where prices are significantly lower.

Conclusion

Should You Settle for a Cheap Home?

There are several benefits to purchasing one of Australia’s least expensive residences. The smaller the mortgage you take out to buy a home at a lower price, the smaller the monthly payment will be. 

It will reduce the stamp duty and the transaction costs associated with purchasing a home. Cheaper houses, however, are not risk-free. Many of them are out in the countryside, far from any kind of civilisation or convenient access to supplies. 

Towns in hot and dry desert climates, where living circumstances are less desirable, will naturally have lower prices. 

Lastly, the homes may be in poor condition and require extensive repairs, which can cancel out any savings from the sale price.

Ultimately, it’s your choice and financial capabilities whether you choose a less expensive home in a less attractive area or a more expensive home near large cities. 

Make a list of the features you need in your dream home before searching for inexpensive homes in Australia. Then, start looking for a home; if one fulfils your needs and happens to be cheaper, go for it!

FAQs:

1. Where in Australia may one find the least expensive homes?

The South Australian township of Andamooka has the lowest median property prices in all of Australia at under $20k. Houses in various small communities in Western Australia cost between $47,500 and $55,000, making them among the cheapest in Australia.

2. Will 2022 Be a Year of Falling Australian Home Prices?

In the quarter ending in June, home values fell by an average of 3.7%. The (NAB) Australia Bank forecasts that, on average, home values will fall by 14 per cent in 2023.

3. Are Australian homes reasonably priced?

Australia’s rural locations, because demand is lower, have the lowest home prices. 

However, those with the financial money to purchase a house in cash or place a larger deposit will find housing in Australia more affordable due to the recent price drop and the larger decline anticipated in 2023.

To buy one of Australia’s least expensive homes in 2022, others will have to settle for higher mortgages.