The cheapest places to buy a house in Australia (2024)

Australia’s two largest and most expensive housing markets—Sydney and Melbourne—remain out of reach for most home buyers, especially first-time home buyers. A 2022 report found that with median home values in each city topping $1 million, Sydney and Melbourne qualified as some of the least affordable cities worldwide.

Luckily for Australians, these are not the only options.

In this article, we will outline not only the cheapest states and suburbs to purchase property, but even the cheapest houses themselves. Here is everything you need to know about the cheapest places to buy a house in Australia.

Which Australian state is cheapest to buy a house?

The Australian state that is cheapest to buy a house is Tasmania, which sits off the southeast coast of the Australian mainland and is the country’s smallest state. In Tasmania’s capital city of Hobart, for instance, home prices are roughly 25% lower than the country’s national average; and you can buy a home for 60% less than you could in Australia’s most expensive centres of Sydney and Melbourne. This is especially advantageous for first-time home buyers.

The most significant caveat with living in Hobart, Tasmania, is that while the property prices and cost of living are low, so is the earning potential. Additionally, rental prices are higher due to the burgeoning tourism industry increasing the price of short-term rentals. This basically means that if you are planning to move to Tasmania for the less-than-average home prices, consider the employment prospect and wages, and plan to buy, rather than rent, as soon as possible.

South Australia: Cheapest places to buy a house in Australia

While Tasmania may be the Australian state that is cheapest to buy a house right now, there is another state that may be more affordable, when you consider employment opportunities and income levels compared to home prices and cost of living. South Australia offers three communities that anyone looking to purchase a property in Australia may want to consider. These include:

• Coober Pedy, South Australia
• Peterborough, South Australia
• Port Pirie West, South Australia

Let’s take a closer took to see what each area offers in terms of affordability.

Coober Pedy, South Australia

A suburban community in South Australia, Coober Pedy’s median house price is $72,000 and its average rent price is $180 per week (or $720 per month). Coober Pedy is often called the opal capital of the world due to the high levels of the mineral that are found there. As an old mining town, many of Coober Pedy’s residents continue to live underground to escape the heat in the region.

A popular tourist stop between Adelaide and Alice Springs, this town is one of the cheapest places to live in the entire country—if not the cheapest. The cost of living here is low, and as a bonus, it is a tight-knit community.

This is Coober Pedy, where people live underground.

In the Australian desert town, locals built underground homes connected via tunnels in mine shafts due to the average daytime temperature that reaches over 43 degrees Celsius pic.twitter.com/cscEVPANgq

— TRT World (@trtworld) March 15, 2021

Peterborough, South Australia

The median house price in Peterborough, also in South Australia, is $101,000. This is an affordable country town, with about half of the population hailing from different parts of the world to create an extremely diverse and close-knit community.

Interesting fact: formerly named Petersburg, Peterborough was one of the many Australian communities renamed in 1917 because of anti-German sentiments that remained after the First World War. Now, this community is popular for its railways.

Port Pirie West, South Australia

Referred to as the “city of friendly people”, Port Pirie West in South Australia offers its residents and visitors alike beautiful natural surroundings and a relaxed lifestyle. The median house price here is $116,000 and the average rent price is $250 per week ($1,000 per month).

With a population hovering around 18,000 people, Port Pirie West is a safe, friendly, and above all inexpensive community to live in.

What is the cheapest suburb to live in Australia?

CoreLogic’s 2022 Best of the Best report, released at the end of last year, revealed that suburbs in Sydney saw some of the largest home and unit value decreases. In Adelaide, meanwhile, suburbs were at the top of the list for the largest growth values.

In its report, CoreLogic also identified the cheapest suburbs to live in Australia, with the cities of Perth and Adelaide making up the top 10.

The cheapest suburb to live in Australia, according to the report, was the suburb of Elizabeth North in Greater Adelaide, where the average price of a home is $291,526. In the No. 2 spot was Kwinana Town Centre in Greater Perth, where the average price of a home is $300,252. Rounding out the Top 3 was Elizabeth Downs of Greater Adeliade, where the median value of homes is $305,336.

Here is a graph of the seven cheapest suburbs to live in Australia:

Where are the cheapest houses in Australia?

Home prices in Australia have skyrocketed to historic highs, making buying a property out of reach for most. This remains especially true for Australia’s two largest markets: Sydney and Melbourne. In either city, first-time home buyers will be greeted by a median home price of $1 million or more.

If, however, you are willing to move a little farther into the country, you will get the biggest bang for your buck.

Here are the cheapest places to buy a house in Australia:

1. Broken Hill, New South Wales
2. Mount Magnet, Western Australia
3. Coober Pedy, South Australia
4. Nelly Bay, Queensland
5. Peterborough, South Australia

Here is a closer look at the cheapest homes within each centre and what they have to offer. This list will look at specific homes currently for sale as of the writing, but we realize that these homes could sell long before you read this. The purpose is to look at where the cheapest homes are in order to get a better sense of the cities with the cheapest homes:

1. Broken Hill, New South Wales

This first one is somewhat misleading, but technically it is still the cheapest property we have seen in Australia. 101 Creedon Street in Broken Hill, NSW, tops the list—at $29,000. However, there is a caveat: The property is not habitable and therefore viewings of the property are unable to be offered, according to realestate.com.au. The sale of the property would most likely be for full renovation or for demolition.

Essentially, this means you would be spending the $29,000 to play with 539 m² of land. If you wanted to purchase the property for rental returns, the median rent in Broken Hill is currently $260 per week and the median home price is $130,000. This is still relevant and indicative of overall home prices being lower here in Broken Hill.

2. Mount Magnet, Western Australia

The next cheapest on this list, 28 Watson Street in Mount Magnet, WA, is going for $40,000. Roughly 575 kilometres northeast of Perth, Mount Magnet is a in gold mining territory, and a centre that has a high demand for rental properties. With renovations, this fixer-upper could act as an investment property, providing the buyer with high rental returns.

3. Coober Pedy, South Australia

Lot 905 Holly Crescent in Coober Pedy, SA, is on the market for $45,000. Roughly 845 kilometres north of Adelaide, Coober Pedy is the opal capital of Australia. For $45,000, you can own land that is 1,287 square metres of freehold title with a single room. However, you also get a five-space carport and a long drop toilet.

During a visit to Australia I talked to quarry owners. A house built in the most expensive material they had, finely cut limestone ashlar, is surprisingly affordable. We are talking between $20-50K depending on location and size for the material alone. Is even brick cheaper? pic.twitter.com/2KyItM4ikH

— Wrath Of Gnon (@wrathofgnon) September 11, 2019

4. Nelly Bay, Queensland

The property of 24/61-79 Mandalay Avenue, Nelly Bay, Qld, is another $45,000 property on the market. Located on Magnetic Island, just off Cairns, this $45,000 home is a one-bedroom unit. The upside with this holiday studio is that it is set in a resort-style complex, which means you have access all of the amenities, such as an outdoor pool, tennis courts, BBQ area, and playground. Also nearby are the resorts’ restaurant and bar.

Perhaps the most desirable home on this list, this home is ideal for a holiday getaway that you may want to rent out if it is not being used. It also comes fully furnished and offers a refurbished bathroom and kitchen.

5. Peterborough, South Australia

The home at 14 Bourke Street in Peterborough, SA, is another legitimate option. At $45,000, this is a three-bedroom stone home which offers a free-standing slow combustion wood fire and a kitchen and dining area with a gas stove. Located 22 kilometres north of Adelaide, the property itself is 1,210 m² and offers a single-car garage, two garden sheds, a woodshed, a workshop area, and chook runs.

Gone are the days when Australia’s first-time home buyers flock to Sydney and Melbourne. In recent years, Tasmania has emerged as the cheapest place to buy a house and South Australia has emerged as being the most affordable. If you want suburban living, you may be better off moving to Adelaide or Perth.

Before making a major move, it is important to do your research to find the cheapest place to buy a house in Australia, such as checking in on what the best mortgage lenders in your area can do for you.

Have experience looking (or finding) the cheapest places to buy a house in Australia? Let us know in the comment section below.