The Soaring Cost of Capital City Living

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Friday, August 15th, 2014
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You’ll pay to be close to the city.

Or at least that’s the case in NSW, Victoria and the Northern Territory where prospective home owners are having to fork out more than half a million dollars to live within 10km of the city.

According to RP Data in Australia’s most expensive capital, Sydney, house hunters will pay more than $700,000 to live in its cheapest inner-city suburb, Wolli Creek.

RP Data research analyst Cameron Kusher said low mortgage rates and rising inner-city home values means more potential buyers are being priced out of the market.

“In some cities, such as in Sydney and Melbourne, the cost of housing is restrictive due to a high level of demand coupled with inherently low levels of supply,” Mr Kusher said.

But, it is possible to pick up some bargain real estate near other state capital cities.

The median house in Tasmania’s Clarendon Vale will set would-be home owners back just $159,159 while Dry Creek in Adelaide is an affordable $255,349.

While units are typically cheaper than houses, Mr Kusher said, they’re not practical or affordable for everyone.

“While units present as an alternative option, even units in certain cities have restrictive price points,” he said.

EACH STATE CAPITAL’S CHEAPEST INNER CITY SUBURB FOR HOUSES

* New South Wales – Wolli Creek, median house price of $710,303

* Northern Territory – Malak, $585,478

* Victoria – Bellfield, $533,252

* Australian Capital Territory – Page, $445,417

* Western Australia – Glendalough, $438,995

* Queensland – Rocklea, $330,848

* South Australia – Dry Creek, $255,349

* Tasmania – Clarendon Vale, $159,159

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