The housing prices in Australia’s capital city are at their highest level ever; however, there are still opportunities for buyers looking to buy in less expensive areas. According to the most recent examination, the home buyers can make as much as $1 million by aiming for outer and developing suburbs instead of the main inner zones.
This document gives a rundown on the most affordable capital city suburbs in Australia that provide a 2025 value, especially for first-time home buyers who have been priced out of the main areas of the market.
Buyers can save up to $1 million in affordable outer suburbs.
Which Are The Cheapest Suburbs To Buy A House In 2025?
The Cheapest Suburbs To Buy A House 2025 are listed using the Q3 2025 Domain House Price Report as a basis. To enjoy these savings, buyers might have to live up to 41.3 kilometres away from the city centre; however, the price difference is very large.
Werrington in Sydney comes first with a typical house price of $770,000, which is situated 41.3 kilometres to the west of the central business district. This price is almost $1 million lower than the Sydney median of $1.75 million.
In Melbourne, Melton has a price tag of $500,000 and is located 30.6 kilometres away from the city centre. The suburb with the lowest price in Brisbane is Russell Island at $426,000, which is only reachable by ferry and is 37.1 kilometres away from the city.
Other cities offering significant savings are Ngunnawal at $760,000 in Canberra, Medina at $550,500 in Perth, Elizabeth North and Elizabeth South at $500,000 each in Adelaide, Risdon Vale at $460,000 in Hobart, and Berrimah at just $320,000 in Darwin.
Why Are First Home Buyers Targeting Outer Suburbs In 2025?
The Best Suburbs For First Home Buyers 2025 are mostly located on the periphery of the main capitals. Here, the buyers can enjoy the advantages of larger land sizes, better prices, and the possibility of capital growth.
A good example of that is Werrington, which has gone through a 43.5 per cent peak in median house prices within the last five years. Still, it is considered one of those railway suburbs of Sydney that allow for less than $800,000 investment.
In Melbourne’s Melton, 450 to 600 square metre blocks are still being secured by buyers on a budget of $500,000, notwithstanding the fact that many of the houses are older constructions.
Besides, Elizabeth North and South, being 22.8 kilometres and 17.3 kilometres away from the city centre, respectively, are the attractive suburbs of the Adelaide area, which are a lot closer than the cheapest zones of other capitals.
First home buyers target outer suburbs for affordability and growth.
Capital City Housing Affordability Remains Uneven
There is a huge shift in housing affordability across Australian capitals. Sydney’s median price is $1.75 million, while Brisbane’s $1.1 million makes it Australia’s second-largest capital for its high price tag.
A median of $1.1 million places Canberra in very close competition with Brisbane, while Adelaide is at $1.049 million. Perth is almost at a million-dollar level, having only $19,000 to go.
In contrast, Darwin continues to be the nation’s most affordable, with a median of $656,858. These differences are precisely the reason behind the escalating interest in Affordable Capital City Suburbs Australia from younger buyers and investors.
What Makes These Suburbs Still Affordable?
The three main affordability factors are distance from CBDs, old housing stock, and lack of infrastructure. The only way to reach Russell Island is by ferry, which causes its median to be $426,000, while Berrimah’s industrial surroundings keep the prices down despite being just 6.1 kilometres from Darwin’s CBD.
Risdon Vale offers its low prices because of the presence of older red-brick houses that only need a little bit of renovation and are therefore ideal for entry-level buyers with a budget of less than $500,000.
Distance, housing, and infrastructure gaps keep Russell Island and Berrimah affordable.
What Should Buyers Consider Before Committing?
Even though these suburbs present lower entry-level prices, the prospective buyers need to weigh in factors such as travel time, transportation availability, future infrastructure changes, and lifestyle alterations.
Take Ngunnawal, for example, the variety of detached homes and townhouses together works out just right for families who love to have space around them, but at the cost of suburbs rather than the inner-city. Melton and Medina are spots where the rental demand is very high, which makes them desirable to investors whose aim is both yield and long-term appreciation.
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FAQs
Q1: What is the most affordable capital city suburb in Australia for 2025?
Of the capital cities, Berrimah is the most affordable in Darwin at a median house price of $320,000.
Q2: Which Sydney suburb has the lowest house prices?
Werrington is reported as the cheapest suburb in Sydney, with a median price of $770,000 and a distance of 41.3 kilometres from the CBD.
Q3: Are these affordable suburbs appropriate for first-home buyers?
Certainly, most of these places are considered among the Best Suburbs For First Home Buyers 2025 due to the low entry price and the potential for future growth.
Q4: What are the reasons for the lower costs of houses in these suburbs?
The distance, older buildings, restricted development, and demand that is lower compared to the inner suburbs are the factors that contribute to lower prices.
