The 40 cheapest property markets: Are they really a good place to buy?
First time investors, and even seasoned property buyers, can often fall into the trap of thinking that just because it sounds cheap it means it’s a good investment.
While everyone loves a low entry level price, it just isn’t always the case that it's an astute buy and you’d be wise to look beyond the median price when considering areas in which to purchase.
Median prices in themselves are of limited usefulness. Be sure to understand how this figure is put together before reading median price lists (this article here will give you a kick start).
You’ll notice in the list of 40 suburbs we’ve put together that they are wildly below the state and territory averages, and for this reason some are in undesirable areas, some are in the middle of, quite frankly, nowhere and others have suffered for other reasons.
Zeehan, for instance, is an area frequently discussed by Property Observer editor at large Jonathan Chancellor as somewhere investors purchased en masse. They were speculating about property growth based on news that a mine was opening up. When it did, and subsequently closed just months later, prices crashed down again. It’s unsurprisingly now the cheapest suburb, based on median price, in Tasmania.
Some suburbs will be unable to shake off the factor holding their property prices back for many years. Whether it’s stigma, which has the potential to be changed, or distance from employment that doesn’t appear to be altering any time soon, be honest with yourself about why the locality is cheap, and what chances there are that this will ease.
It may be one of the cheapest properties you ever buy, but it may also work out to be one of the most expensive in terms of opportunity cost.
Be prepared to educate yourself, learn about the market, and go in with a critical mind.
It's also worth remembering not to follow the crowd. While this list here might be where Victorian first home buyers are currently purchasing, it doesn't mean it's right for you.
Turn over page for the 40 cheapest property markets.
Here are 40 suburbs, the five cheapest by state and territory, and their median prices as per the latest RP Data statistics.
Click on each of the suburb's headlines to see more statistics and local details about their property markets.
ACT
$390,000
$430,000
$432,000
$434,000
$445,000
NSW
$55,000
$65,000
$65,000
$75,000
$79,000
NT
$240,000
$255,000
$263,000
$290,000
$300,000
QLD
$40,000
$79,000
$98,000
$131,000
SA
$90,000
$90,000
$90,000
$104,000
$128,000
TAS
$60,000
$68,000
$76,000
$118,000
$128,000
VIC
$73,000
$75,000
$76,000
$78,000
$82,000
WA
$35,000
$36,000
$82,000
$83,000
$90,000