Brisbane Home Affordability Improving While Adelaide & Perth Shine

The latest April 2015 report from Moody’s Housing Affordability Measure concludes mortgage strain is slightly lessening for Brisbane homeowners thanks to falling mortgage interest rates and stabilising real estate prices, while Adelaide and Perth are faring better than the rest.

Moody’s has concluded that currently a two income Brisbane household needs to allocate about 23.4% of their income to monthly mortgage repayments. Last year this figure sat higher at 24.4%. Sydney and Melbourne on the other hand are not doing well, their house prices are continuing to rise. Currently in Melbourne, a household must spend around 28.2% on monthly repayments, while in Sydney this figure jumps up to a tremendous 35.1%.

Australia’s Best Cities for More Affordable Home Ownership

Adelaide and Perth are the only two Australian cities faring better than Brisbane. In Adelaide about 22.1% of two person household income goes towards repayments, while in Perth it drops to 21.9%.

Where to Buy In Brisbane

CoreLogic RP Data, the world’s largest property and analytics adviser has released its latest property market findings pin-pointing which suburbs are ideal for home buyers to invest in.

Cameron Kusher, head of research at CoreLogic says house prices in Brisbane have risen dramatically by 10.9% over the last 5 years alone. A decade ago you could pick up a nice house in Brisbane for $310,000. Then, in 1995, it rose to around $480,000 and today prices are astronomical in some cities and suburbs.

“This is reflective of strong demand in these inner-city areas which has driven up the cost of housing. As a result you don’t get very much for $480,000 these days, particularly relative to what you got for the same price 20 years ago. What it also shows is that investing in housing should be a long-term investment not a short-term one”, said Mr Kusher.

If you are after a Brisbane home within 10 kilometres of the city, then the south side is where you want to look.

Top 5 Brisbane Suburbs for Houses Accompanied by Median Prices

1. Rocklea: $353,030

2. Keperra: $439,015

3. Tingalpa: $478,686

4. Salisbury: $485,570

5. Nathan: $487,265

Top 5 Brisbane Suburbs for Units Accompanied by Median Prices

1. Tingalpa: $348,072

2. Holland Park West: $347,010

3. Gordon Park: $347,497

4. Kedron: $347,712

5. Moorooka: $350,756

Best Homebuyer Suburbs in Other Cities & Their Median Prices

Turrella, Sydney: $839,676

Bellfield, Melbourne: $582,573

Dry Creek, Adelaide: $244,847

Osborne Park, Perth: $431,036

Clarendon Vale, Hobart: $156,078

Malak, Darwin: $569,447

Page, Canberra: $462,193

If you’re serious about an inner-city lifestyle then you should be looking at units. Units are a more affordable entry-point into an inner-city lifestyle compared to homes as available space continues to shrink while demand soars.

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