🚨 These are 7 of Australia’s cheapest capital city suburbs, and some could be among the strongest performers over the next 12 to 18 months.
Interest Rates in Perspective
A lot of investors are worried about interest rates and whether property can keep rising.
But here’s some perspective.
Australian property has doubled 7 times in 6 decades, through periods of rising, falling and flat interest rates.
In 1988, the RBA cash rate was 15%, yet home values increased 31% that year.
Meanwhile, Australia’s population is around 28 million and is projected to reach approximately 31.5 million by 2035.
Affordable Property Is Outperforming
And something interesting is happening at the affordable end of the market.
In Last 18 Months:
➡️ Cheapest 25% of properties grew 9.5%
➡️ Middle market grew 8.7%
➡️ Most expensive properties grew only 6.2%
So affordability is outperforming.
Australia's Cheapest Capital City Suburbs
According to Cotality, some of Australia’s cheapest capital city suburbs include:
➡️ Gagebrook, Hobart: ~$400,000
➡️ Herdsmans Cove, Hobart: ~$433,000
➡️ Bridgewater, Hobart: ~$442,000
➡️ Risdon Vale, Hobart: ~$480,000
➡️ Berrimah, Darwin: ~$488,000
➡️ Russell Island, Brisbane: ~$494,000
➡️ New Norfolk, Hobart: ~$496,000
There are also Primrose Sands at ~$515,000, Lamb Island at ~$518,000 and Clarendon Vale at ~$520,000.
The theme is pretty obvious.
Greater Hobart.
Why Cheap Doesn't Automatically Mean a Good Investment
But affordability alone does NOT make a good investment.
Brisbane was relatively affordable between 2010 and 2020, yet grew only around 18%.
That’s why I analyse around 30 to 35 factors, including stock on market, days on market, building approvals, affordability relative to income, infrastructure, zoning and income growth.
The Hobart Suburbs Close to Major Employment
Of these Hobart locations, I’m particularly interested in Gagebrook, Herdsmans Cove, Bridgewater and Risdon Vale because of their proximity to Hobart’s major employment centre.
Tasmania's Housing Supply Shortfall
And Tasmania has another significant factor working in its favour.
It’s currently one of the jurisdictions falling furthest behind its housing construction targets.
Restricted supply + healthy demand = upward pressure on prices.
We’re already seeing strength across Tasmania, including Devonport, Launceston and Burnie.
Buying With Less Than $100,000 in Starting Capital
Some of these properties can still be purchased with less than $100,000 of starting capital, while potentially producing yields above 5%.
The opportunity isn’t simply buying something because it’s cheap.
It’s finding affordable property where the DATA says demand is starting to overwhelm supply.
Book a Free Discovery Call With Realta with PK
If you would like to understand which markets our research team is currently active in and whether a property in Melbourne or elsewhere in Australia makes sense for your situation right now, book a free 60-minute Discovery Call with our team.
There is no obligation and no cost. Just an honest conversation about your goals, your budget and what the data actually shows about where the best opportunities are right now.
Co-Founder | The Educator & Mentor
I’m also a property investor with a $27m+ debt-free portfolio of residential & commercial property, generating over $300k+ net annual passive income.
I help people from all over Australia, by accessing a unique strategy that combines high growth high cashflow residential property, alongside highly profitable property development projects to help accelerate their passive income. I typically work with families, young over-achievers, and new Buyers Agents who want a predictable, DATA-led system to grow wealth and Passive Income.