Regional and outer-metro locations dominate, with a smaller number of inner-city unit markets included
Ten house and unit markets across Australia have been named in a new top 10 list of locations flagged for their lower entry prices alongside expectations of rental demand and longer-term growth.
The selections come from Hotspotting’s “Cheapies With Prospects” research, which points to pockets of the market where investor borrowing may be supported by more accessible price points without relying on speculative drivers.
According to Tim Graham (pictured top left), director at Hotspotting, the search for inexpensive options in the capitals had become more difficult, but not redundant. “The common thread is not just low prices but an affordable entry into capital city markets where there is still a credible reason to expect future demand, rental strength, and long-term growth,” he said.
“In some locations, that means units in major employment and infrastructure hubs and, in others, it means houses in outer-metro growth corridors where transport upgrades, population growth and new development are reshaping the market.”
Terry Ryder (pictured top right), founder of Hotspotting, said the current focus was on value and fundamentals rather than price alone. “It might be a lower-priced apartment in a major city economy, which is a unit market that has underperformed but is starting to recover or it might be an affordable fringe market still benefiting from strong momentum and expanding amenities,” he added.
“As always, the emphasis is not on buying anything cheap but about buying the right type of asset in the right part of each market. These are the Ugly Ducklings of city real estate, offering investors a realistic entry point into capital city property with both rental appeal and long-term upside.”
Graham said that regional Australia continued to provide a mix of affordability, rental yield and growth potential, although performance had become more uneven. “The broad surge that lifted many regional markets through and beyond the COVID-19 years is no longer happening everywhere at once,” he noted.
“Some locations have already had their major run, others are now stabilising, consolidating or asking investors to be much more precise about where and what they buy. Others, such as Broken Hill, are probably considered ‘roughies’ but deserve their selection in our top 10 list because of its underlying fundamentals.”
The top 10 affordable suburbs with long-term investment potential
Ballarat (VIC) – houses: Median house prices in Ballarat sit between $475,000 and $920,000. The report notes a diversified local economy and significant infrastructure investment, with the main focus on established houses in suburbs with tight vacancies and steady tenant demand.
Broken Hill (NSW) – houses: With a median house price of about $220,000, Broken Hill is identified as a high-yield, higher-risk option for experienced investors, supported by mining, healthcare, tourism and renewable energy activity.
Gawler (SA) – houses: In Gawler, median house prices around $650,000 to $775,000 place it below many parts of metropolitan Adelaide. The area is described as a northern growth corridor, with rising transaction volumes and scope for further price movement as affordability narrows.
Glenorchy (TAS) – houses: Glenorchy, part of Greater Hobart, records median house prices in the range of $551,000 to $700,000. The report highlights its proximity to Hobart’s jobs and services, tight vacancy rates and consistent sales activity across both houses and units.
Melbourne (VIC) – units: Apartments in the City of Melbourne, with median prices from $310,000 to $705,000, are seen as an accessible way into a major employment and education hub after a period of underperformance in the unit market.
Muswellbrook (NSW) – houses: Muswellbrook’s houses, with median prices between $570,000 and $585,000, are linked to both coal and emerging sectors such as renewable energy and transport. The report notes relatively accessible price points paired with strong rental returns.
Parramatta (NSW) – units: Units in Parramatta, where medians range from $510,000 to $850,000, are presented as a lower-cost alternative to houses in Sydney’s “second CBD”, underpinned by transport links, major employment centres and ongoing public and private investment.
Port Lincoln (SA) – houses: Port Lincoln, with a median house price of about $535,000, is described as a regional centre with a broad industrial base including aquaculture, fishing, tourism, manufacturing, agriculture and emerging energy projects.
Wellington Shire (VIC) – houses: In Wellington Shire, median house prices between $377,500 and $575,000 offer one of regional Victoria’s lower entry points. The report notes solid yields, increased transaction activity and the role of Sale as a local service hub.
Woden Valley (ACT) – units: Woden Valley’s unit market, with median prices from $350,000 to $669,000, is highlighted as a comparatively affordable way into the Canberra market, supported by employment, retail, health and education infrastructure centred on Phillip.
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
