The surprising major city in Australia where houses are still affordable

By Stephen Johnson, Economics Reporter For Daily Mail Australia

Published: 22:43 BST, 30 April 2024 | Updated: 22:45 BST, 30 April 2024

Melbourne is still a surprisingly affordable city for average-income borrowers looking to buy a house near the water and be a reasonable commute from the city, new figures show.

Unlike Sydney, Brisbane, Perth and Adelaide, the median house price hasn’t been soaring by double-digit figures at some point during the past year. 

Intriguingly, Melbourne’s median house price has also been growing at a slower pace than wages, despite receiving a large intake of overseas migrants, with Brisbane now on track to overtake it.

In the year to April, its mid-point house price grew by 3 per cent, which was well below the wage price index of 4.2 per cent, CoreLogic data showed.

Melbourne’s median house price has also been growing at a slower pace than wages, despite receiving a large intake of overseas migrants, with Brisbane now on track to overtake it

While the median house price of $941,698 is still dear, there are suburbs near Port Phillip Bay where the mid-point price is still under $600,000. 

Frankston North, a one-hour train ride located 53km south-east of the city, has a median house price of $597,429, making it affordable for an average, full-time worker on $98,218.

Living by the water is now cheaper than doing the same thing 50km north of Brisbane, where Caboolture’s median house price is $660,993.

Brisbane’s median house price during the past year has soared by 15.9 per cent to $920,046, putting it within striking distance of overtaking Melbourne.

But it was far from the only state capital city where prices soared with Perth’s median house value soaring by 21.3 per cent to $753,947, as Adelaide’s mid-point climbed by 13.9 per cent to $800,648.

Melbourne is still a surprisingly affordable city for average-income borrowers looking to buy a house near the water and be a reasonable commute from the city (pictured is a man outside Flinders Street Station)

Sydney is still Australia’s most expensive capital city with a median house price of $1.421million but its annual growth pace of 9.6 per cent is a moderation from the double-digit figures of 2023 and early 2024.

Canberra is Australia’s second dearest city with a median house price of $972,699 but the 2.8 per cent annual growth pace was also weaker than the wage price index.

Hobart was the only state capital city where prices went backwards, with house values falling by 0.2 per cent to $692,004.

Darwin’s median house price grew by just 1.4 per cent to $579,229.

Australian property prices grew for the 15th straight month in April, with values up 11.1 per cent or $78,000 since the trough in January last year, reaching $779,817.

AUSTRALIAN HOUSE PRICE RISES DURING PAST YEAR

SYDNEY: Up 9.6 per cent to $1,421,413

MELBOURNE: Up 3 per cent to $941,698

BRISBANE: Up 15.9 per cent to $920,046

PERTH: Up 21.3 per cent to $753,947

ADELAIDE: Up 13.9 per cent to $800,648

HOBART: Down 0.2 per cent to $692,004

CANBERRA: Up 2.8 per cent to $972,699

DARWIN:  Up 1.4 per cent to $579,229

Source: CoreLogic median house prices in the year to April 2024 

 

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The surprising major city in Australia where houses are still affordable

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