Tax rules and planning systems create distinct property markets in border regions
Property prices in Australia’s border communities can vary widely, with state policies and taxes contributing to notable differences in housing costs for buyers on either side of the divide, new analysis has found.
Towns such as Albury and Wodonga, which are separated by the Murray River and the New South Wales-Victoria border, often function as a single community. However, residents face different property markets due to distinct tax regimes, planning systems, and government incentives.
Recent data from PropTrack shows that in June, the median house price in Albury reached $902,500, while in neighbouring Wodonga, it was $575,000 – a gap of more than $325,000. The median price for units was $453,500 in Albury and $380,000 in Wodonga. Over the past year, Wodonga saw 385 house sales and 86 unit sales, compared to 80 house and 38 unit transactions in Albury.
Rental prices in the two towns were closer, with median weekly asking rents for houses at $550 in Albury and $500 in Wodonga. Median unit rents were $380 in Albury and $375 in Wodonga.
Local real estate agents report that many buyers choose to stay on the side of the border where they have personal or family connections. “Wodonga appeals more to families and owner-occupiers, while Albury attracts buyers looking for more nightlife and commercial amenities,” said Benn Dorrington, analyst at online listings firm REA Group.
Differences in stamp duty and land tax, particularly Victoria’s higher rates, have also influenced some buyers to purchase in New South Wales.
A similar pattern is evident further north between Coolangatta and Tweed Heads. Coolangatta, located on Queensland’s Gold Coast, had a median house price of $1,817,500, compared to $1,352,500 in Tweed Heads, just across the border in New South Wales. Median unit prices were $1,030,000 in Coolangatta and $870,000 in Tweed Heads.
“Coolangatta commands a premium because of its beachfront location, luxury developments and proximity to iconic surf spots,” Dorrington said. “Tweed Heads offers better value for money and has been popular with retirees and first-home buyers.”
State-specific factors such as stamp duty, land tax, and first-home buyer incentives play a significant role in these price differences. In Victoria, first-home buyers pay no stamp duty for existing homes under $600,000 and receive concessions up to $750,000. New South Wales offers full exemptions for homes up to $800,000, with concessions available up to $1 million. Queensland provides its own set of incentives, including stamp duty exemptions for first-home buyers on properties valued up to $800,000.
Other border communities, including those near the ACT–NSW line and the Victoria–South Australia border, also experience property price gaps, though available data is more limited in some regions.
Ultimately, state policies, tax rules, and local amenities continue to shape the property landscape for buyers and sellers in Australia’s border towns.
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