Back to the office? Most affordable suburbs within 5-10km of CBDs revealed

With COVID-19 regulations coming to a slow stop, would-be buyers may want to know which suburbs nearby to CBDs offer the greatest value for their dollar.

Regional migration soared during the pandemic, with migration from capital cities to regional areas 15% higher across the last two years, according to the latest Regional Movers Index.

While Covid-19 saw more Aussie workers move away from CBDs for greener pastures, the recent return-to-work orders makes CBD-adjacent living appealing again.

Not every owner-occupier may be convinced, but it may be a considerable option for those looking for property investment opportunities. And new data from Domain has revealed the most affordable suburbs within 5km – 10km of some of our capital’s CBDs.

“Entry-level” pricing may not be the right description for some of these suburbs – especially those in Sydney and Melbourne. But this data still paints a picture of the suburbs homeowners and investors could consider purchasing in at a more affordable price tag than their neighbours.

Most affordable suburbs 5km and 10km from Sydney’s CBD

Source: Domain. Suburb median price based on Dec quarter 2021, minimum 50 sales

Most affordable suburbs 5km and 10km from Melbourne’s CBD

Source: Domain. Suburb median price based on Dec quarter 2021, minimum 50 sales

Most affordable suburbs 5km and 10km from Brisbane’s CBD

Source: Domain. Suburb median price based on Dec quarter 2021, minimum 50 sales

Most affordable suburbs 5km and 10km from Adelaide’s CBD

Source: Domain. Suburb median price based on Dec quarter 2021, minimum 50 sales

Most affordable suburbs 5km and 10km from Perth’s CBD

Source: Domain. Suburb median price based on Dec quarter 2021, minimum 50 sales

The cost of living near the CBD

Living in proximity to the CBD may always come with a greater price tag than living in the outer suburbs, but the amenities you gain access to and the time and money saved commuting to work may help to balance this out.

ABS Lending Indicators for January 2022 show that the average mortgage size for owner-occupiers in Australia sits at around $618,000. For New South Wales it’s around $800,000, and for Adelaide it’s closer to half that value ($457,493).

Median house values for property within 5km and 10km of our biggest capital cities is significantly higher than these averages and, in some cases, over double the value. For homeowners looking to get the greatest bang for their buck it may be worth weighing up the pros and cons of CBD proximity against the home loan affordability.

Domain’s head of research and economics, Nicola Powell, said: “When you look at the value of property, it’s the land component that rises over time and I think once we’re out of covid we will see that population growth continue – and well-connected parcels of land will remain popular.”

“Those areas that are located within easy distance of amenities, good schools, infrastructure … they are those premium family areas that always have that highly desirable following,” she said.

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