‘Underrated’: Where to find the most affordable, liveable suburbs

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Home buyers can find pockets of relatively affordable properties in amenity-rich areas within 20 kilometres of the city centre, despite widespread poor affordability, new research shows.

But the opportunity may not last, as property prices are widely expected to rise next year.

Housing affordability is poor, but there are still pockets that are relatively cheap.

The most affordable and liveable suburbs were highlighted in PRD Real Estate’s Smart Moves: Capital City Edition Second Half 2025, released on Wednesday.

The report highlights suburbs that have a lower median property price than their metro area, a pipeline of commercial and infrastructure projects and new housing supply, rental yields and vacancy rates on par with, or better than, the metro area, and amenities available within a five-kilometre radius such as schools, public transport, shopping centres, healthcare and green spaces.

For buyers looking for a house in Sydney, the research highlighted a cluster of western Sydney suburbs close to Parramatta: Merrylands (median house price $1.31 million), Chester Hill ($1,305,000) and Granville ($1,165,000).

In Melbourne, house buyers could consider St Albans ($685,000) and Sunshine North ($756,000) in the west and Heidelberg West ($760,000) in the north-east.

Brisbane buyers could look to Slacks Creek ($760,000), Bray Park ($850,000) and Inala ($800,000), although the city’s recent property boom meant trying to find affordable and liveable options was a challenge, PRD chief economist Dr Diaswati Mardiasmo said.

“The way that we structure this report, it’s not just about finding you the cheapest place to live, it’s also about making sure there’s at least some development in those areas,” she said, adding that the report focused on a 20-kilometre radius from city centres as so many jobs are located within that distance.

“Having more affordable housing within 20 kilometres, it really does build up that economy, it really does build up that security people have to say, ‘you know what, I can live here, I don’t need to uproot and try and find a home somewhere else’.”

Mardiasmo said buyers may have better prospects looking for a unit rather than a house, given prices are cheaper and more stock is being developed.

For unit buyers, the top suburb picks in Sydney were Bankstown (median unit price $585,000), Lakemba ($500,000) and Parramatta ($600,000).

Melbourne unit buyers could consider Bundoora (median price $470,000), Broadmeadows ($485,000) and Box Hill ($540,000).

In Brisbane, the report highlighted Logan Central ($425,000), Zillmere ($640,000) and Sherwood ($680,000).

“The prospect of buying a house in comparison to a unit is definitely much less,” Mardiasmo said. “[There’s] definitely more units available and more units coming up.”

The report comes after separate research from Cotality found that housing affordability has reached its worst levels on record, and several forecasters predicted property prices to rise next year.

Mardiasmo said many of the suburbs named in past iterations of the report had dropped out of the rankings as prices there had risen and were no longer considered affordable.

“If the cash rate stays stable for 2026, the chances of these suburbs making it again in 2026 is higher. If there’s another couple of cash rate cuts, the chances of these suburbs making it again in the affordability report next year will be lower.”

In Sydney, Starr Partners director Daniel Starr said Merrylands offered family homes close to the Parramatta CBD but at a more affordable price.

He said the area had been changing and becoming more diverse and affluent, and now features several restaurants and a large shopping centre as well as a train line to the city.

Demand from first home buyers was pushing up prices in the unit market and for entry-level homes up to $1.3 million, he said, but he did not think the benefits of Merrylands were widely understood.

“I genuinely feel that it is underrated,” he said. “I think we’re going to see a lot more communities that can’t afford the Burwoods, they can’t afford the Strathfields … they’re starting to identify Merrylands as an affordable base,” he said.

In Melbourne, Westside Real Estate chief executive Surinder Sarain said St Albans was drawing buyers because the area still includes many large lots, which can be approved for development into townhouses or apartments.

Buyers like the proximity to the airport, Victoria University and the shops at Sunshine, he said.

Houses could be purchased for about $700,000 to $750,000, and with up to $30,000 in renovations could become a good-quality family home, he said.

He also thought many Melburnians did not appreciate the attractiveness of the area.

“I think they don’t [appreciate it] and that’s why the prices are still low. But a lot of smart investors who know what is coming, and how far it is, what it has, they’re the ones who are getting a bargain at the moment,” he said.