Not much under $250,000 in Australia's most affordable mainland inner city suburbs: CoreLogic RP Data

When looking for an affordable purchase, many prospective buyers find themselves forced to look further out from the inner city.

CoreLogic RP Data has gathered the cheapest five suburbs within 10 kilometres of the capital city CBDs, for both house and unit markets.

The expensiveness of Sydney's suburbs is immediately apparent, with an almost $700,000 difference between the median price of its cheapest inner city suburb for houses, Turrella, and that of Hobart's cheapest inner city suburb, Clarendon Vale. In Sydney, all the cheapest suburbs for houses were close to the airport, south of the city. The unit market was more varied.

Source: CoreLogic RP Data

CoreLogic RP Data research Cameron Kusher noted that units are cheaper than houses in all the most affordable inner-city markets.

"In the more expensive cities such as Sydney, Melbourne, Darwin and Canberra it has become difficult to secure houses close to the city at relatively affordable prices," said Kusher.

"Given buyers are willing to pay an entry level premium – we anticipate this trend will continue over the coming years."

Kusher attributed high inner-city prices to better infrastructure and amenity, including hospitals, schools, transport and retail centres.

"Furthermore, the better schools are often also located around the inner city suburbs. As a result, demand for housing in these areas is typically much higher resulting in the cost also being higher," said Kusher.

Bellfield, in Melbourne's north, is the cheapest suburb for houses, with a median price of $582,573. The renovated brick home below, at 38 Wimpole Crescent, Bellfield (pictured below), sold in December for $506,000, after being listed with a price guide of $620,000.

The two bedroom house sits on a 605 square metre plot.

The cheapest inner-city unit market in Australia is unsurprisingly located in Hobart. Glenorchy, which is north of the CBD, has a median unit price of just $199,303.

1/13 Sunlea Place in Glenorchy (pictured below), a two bedroom unit, sold for $190,000 in December.

Earlier this year, it was advertised to rent at $270 per week. If the vendors secured a tenant at that price, the property would be yielding 7.4%.

Note: This article originally mistakenly referred to 38 Wimpole Crescent as 38 O'Keefe Street. The error has now been amended.