With the Australian real estate market taking a hit in 2022 thanks to increasing mortgage rates, buying a house in 2023 is sensible for home buyers looking for affordable options.

While rising interest rates will increase mortgage prices, fewer people will be willing to invest in property, halting the housing market price growth. According to experts, the median house price for Australian property is set to go down by over 10% by the end of the year, making house prices the most affordable they’ve been since pre-pandemic.

This article will explore the most affordable regional and capital city suburbs with a median price below $900,000.

NSW First Home Buyer Choice Key Takeaways:

  • The median house price of a Sydney home is currently $1,552,015.

  • The cheapest suburbs located in NSW are Mount Druitt and Peak Hill.

  • Home buyers in 2023 will face lower house prices due to rising mortgage interest rates.

What is the median house price of a Sydney home in 2023?

As of May 2023, the median house price of a Sydney home is currently $1,552,015.

While Sydney is one of the most expensive cities on the planet, that doesn’t mean there aren’t affordable houses in the outer suburbs.

Which Australian city has the lowest median price for homes?

Compared to Sydney, Darwin is the most affordable city to live in, with affordable property in both the city centre and the surrounding suburbs. The median house price in Darwin is $632,071, while units are currently $390,265.

This means that if that property owner decides to sell the house after 10 years (the median holding period), they have paid a total of $26,110 in annual tax, which is way lower than the upfront stamp duty fee. This is equivalent to a savings of $24,640! It will take 19 years for the annual tax to breakeven with the stamp duty cost.

Top 5 most affordable suburbs in 2023

1. Peak Hill, NSW

Peak Hill is a quiet, peaceful town with a relaxed lifestyle and easy access to nature and outdoor activities, located 400km west of Sydney. It may be a good choice for those seeking a rural lifestyle, although it may not be suitable for those who require access to large city amenities and services.

Peak Hill has several outdoor recreational opportunities available to residents, including nearby nature reserves and national parks. Goobang National Park, which is approximately 30 kilometres away, offers scenic walking trails, camping facilities, and picnic areas, making it ideal for couples and families.

As of April 2023, the median house price of a Peak Hill home is currently just $200,000. Peak Hill is also a regional suburb and part of the Regional First Home Buyer Guarantee (RFHBG).

2. Hopetoun, VIC

Hopetoun is located 100km southeast of Mildua and is the cheapest suburb in VIC due to its rural location. Despite this, Hopetoun has various services and amenities, including a supermarket, post office, medical centre, along with several shops and cafes.

For families, Hopetoun has a primary school and college, as well as several parks. Lake Lascelles, located nearby, is a very popular destination in the local community, with fishing, camping, and boating opportunities.

Hopetoun is part of the RFHBG, and the median house price as of April 2023 is just $185,000, making it one of the cheapest suburbs in Australia.

3. Tara, QLD

Tara is a small, friendly town located 300 kilometres from Brisbane and 50 kilometres from Dalby. It offers a relaxed lifestyle with easy access to outdoor activities and scenic attractions.

Tara is known for its agricultural industry and has a range of services and amenities to support its residents, including a supermarket, post office, medical centre, and several shops and cafes. The town also has a primary school, a high school, and several parks and sports facilities, making it perfect for young families.

Tara is also part of the RFHBG, with the median house price currently $150,000.

4. Willmot, NSW

One of the most affordable suburbs in Syndey, Willmot is just 49 kilometres west of the central business district.

Willmot offers close proximity to city living in central Sydney while still having a suburban feel that makes it perfect for young families. Unlike other inner city suburbs, Willmot is home to two primary schools, an abundance of parks, and Mount Druitt – a major shopping centre that will satisfy all your retail needs.

This suburb also has several reserves, including Whalan Reserve and Minchinbury Reserve.

The median house price in Willmot is currently $640,000 for houses, making it one of the cheapest suburbs in close proximity to Sydney.

5. Mount Druitt, NSW

Mount Druitt is a Sydney suburb located 43 kilometres west of the capital. One of the cheapest suburbs in Sydney, Mount Druitt has plenty of amenities, including a shopping centre, library, and post office. It’s also a multicultural hub with plenty of restaurants and cafes.

Despite being one of the cheapest inner city suburbs, Mount Druitt has several parks and recreational areas, including the Swimming Centre and the Nurragingy Reserve, making it popular amongst families and outdoor enthusiasts.

The suburb is well-connected to other parts of Sydney, with several train and bus services running through Mount Druitt Station. The Western Sydney University also has a campus located in the suburb.

The median house price of a Mount Druitt home is currently $885,000.

Ready to find your dream first home? Consider Lendstreet.

Our expert mortgage brokers are ready to advise you on the best suburbs for your first home. We can help you secure a home loan that best suits your needs, and we’ll guide you through the ever-changing property market. Book a free consultation with our the best home loan brokers in Sydney.


Why are property prices coming down in Australia?

Due to the rising cash rate set by the RBA, interest is rising, meaning banks charge more interest on property mortgages. Because of this, fewer people are willing to invest in real estate, meaning there’s less demand for property. This is reflected in median house prices around Australia.

How much do you need to earn to buy a house in Australia?

The amount you need to earn to buy a house in Australia depends on several factors, such as the property’s location, size, condition, and financial situation, including your income and savings.

How much house can I afford based on my salary?

The past year has seen mortgage repayments increase significantly, so it’s necessary to determine how much you’ll need to repay per month and whether this is affordable on your current salary.

For instance, if your mortgage interest rate is 5% and your mortgage is worth $650,000 after putting down a cash deposit of $160,000, with a loan term of 25 years, your monthly repayments would be $3,810 per month.

You can also use our repayments calculator here.

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