Australia’s housing prices have seen the nation’s affordability return to 2016 levels

But despite the well-documented housing price decline of many markets across the nation, Sydney is still Australia’s least affordable market to buy into, followed closely by Melbourne in second place.

Sydney’s dwelling values have recorded a 14.9 per cent decline since peaking, while Melbourne an 11.1 per cent drop.

Taking in suburbs located in urban areas with median house prices between $400,000 and $600,000, research group Select Residential Property identified 15 affordable suburbs in strengthening property markets, with prospects of potential price growth across the next three years.

State	Urban Area	Locality	Median House Price	Better off in three years
ACT	Canberra- Queanbeyan	Charnwood	$439,483	$123,520
NSW	Canberra- Queanbeyan	Karabar	$525,599	$122,546
NSW	Gold Coast – Tweed Heads	Bilambil Heights	$559,164	$105,787
QLD	Brisbane	Underwood	$538,244	$97,727
TAS	Hobart	Geilston Bay	$475,613	$88,949
VIC	Ballarat	Miners Rest	$400,425	$79,644
SA	Adelaide	St Marys	$477,602	$78,955
TAS	Hobart	Austins Ferry	$404,453	$72,635
SA	Adelaide	Birkenhead	$418,158	$71,945
SA	Adelaide	Largs North	$428,047	$64,039
QLD	Sunshine Coast	Kuluin	$509,258	$62,817
NSW	Newcastle – Maitland	Largs	$555,042	$60,986
SA	Adelaide	Croydon Park	$468,535	$58,470
TAS	Hobart	Old Beach	$448,259	$50,958
NSW	Newcastle – Maitland	Tenambit	$442,552	$50,089

Select Residential Property director of research Jeremy Sheppard said the top five locations were found in Canberra, the Gold Coast, Brisbane and Hobart where investors could be better off by more than $120,000 in three years, according to the research.

Sheppard said the top and bottom suburbs identified by the analysis, takes into consideration selling and buying costs.

“The Canberra-Queanbeyan region has taken out the first and second places for forecast price growth, partly due to affordable house prices close to our nation’s capital,” Sheppard said.

“Both Charnwood and Karabar are near Canberra, which means housing is in strong demand from public servants.”

Hobart has three of the top 15 results. Geilston Bay, sits on the Derwent River and is located seven kilometres from Hobart.

South-east Queensland and northern NSW is home to number three and four on the list, which Sheppard says is due to housing affordability, location, and access to major employment nodes.

“Bilambil Heights is in the Tweed Heads region of the Gold Coast. Not only does the suburb boast water views, Surfers Paradise is also only about 30-minutes’ drive away,” he said.

The research also identified areas where owners might be better off selling up.

Low Forecast Growth Locations Over Three Years

State	Urban Area	Locality	Median House Price
NT	Darwin	Rosebery	$528,020
WA	Perth	Henley Brook	$577,080
VIC	Melbourne	Clyde North	$589,725
WA	Perth	Jindalee	$572,623
NT	Darwin	Farrar	$513,736
WA	Perth	East Cannington	$444,566
WA	Perth	Wandi	$507,977
WA	Perth	Shoalwater	$428,932
WA	Perth	Bentley	$451,875
QLD	Brisbane	Bahrs Scrub	$457,678
WA	Perth	Helena Valley	$570,389
NT	Darwin	Howard Springs	$599,621
WA	Perth	Munster	$523,772
WA	Perth	Piara Waters	$482,822
WA	Perth	Noranda	$524,283