Who doesn’t love a good bargain? Especially on a huge purchase like a house?
Take a look at where you can find the cheapest houses in Australia in 2022.
But first…
What Is Considered Cheap Real Estate in Australia?
The mean house price in Australia, the ABS estimates, was $921.500 in the June quarter of 2022, down from a record high of $942,000 recorded in March.
The cost of property in Australia is the highest in NSW ($1.7 million), followed by Victoria and Queensland where mean house prices reach $938,900 and $782,300, respectively.
What affects house prices in Australia?
There are numerous factors that determine the overall price of properties across Australia.
- Location: A house located in a coastal area, close to public transport, is priced higher than a house in the outskirts where amenities or resources are not readily available;
- Property specifications, such as the size of the home, the number of bedrooms, bathrooms and the materials used in the construction;
- Supply and demand: A small number of houses on the market and higher demand means higher prices. An oversupply of homes and a decline in demand gives buyers more wiggle room to negotiate a better price;
- Interest rates and economic growth are among the biggest contributors to rising house prices. Low-interest rates allow people to borrow more money and repay less, fueling demand, which in turn causes house prices to skyrocket.
Is 2022 a good year to buy a house in Australia?
Average house prices have been on the rise for the past 10 years, declining in the June quarter of 2022 when five of the eight capital cities recorded a drop in prices. The most drastic fall was registered in Sydney where dwelling prices went down by 2.2%. A slight increase was noted only in Adelaide (0.4%), Darwin (0.5%) and Pert (0.2%).
This may sound like good news to home buyers, but the RBA increasing the cash rate for the fourth month in a row will seriously affect borrowing power. Both fixed and variable interest rates are on the rise which might make it impossible for households to take out mortgages without joining the two-thirds of households in Oz that are already in debt.
It also means that properties are falling in value, so the home could be worth much less than the purchase price just a few months later.
Considering how to finance your purchase? Take a look at these helpful guides:
Where Are the Cheapest Houses in Australia Located?
Here is a list of the cheapest places to buy a home in Australia in 2022.
| Suburb | Median house price | Average growth | Median weekly household income | Median monthly mortgage repayments |
| Andamooka, SA | $20,000 | -20.00% | $703 | $867 |
| Norseman, WA | $47,500 | 7.56% | $771 | $600 |
| Mount Magnet, WA | $48,500 | 3.93% | $1,204 | $542 |
| Augathella, QLD | $55,000 | 25.17% | $1,053 | $479 |
| Morawa, WA | $55,000 | -1.06% | $1,443 | $500 |
| Coober Pedy, SA | $63,750 | -8.61% | $764 | $630 |
| Swan Bay, NSW | $62,500 | -30.91% | $1,156 | $1,400 |
| Collarenebri, NSW | $62,500 | 8.06% | $1,042 | $759 |
| Menindee, NSW | $68,000 | 24% | $885 | $758 |
Most of the towns on the list are located in South Australia and West Australia, where growth is driven mainly by mining and tourism. This is particularly true for suburbs like Andamooka, Norseman and Mount Magnet, the last two of which are located in WA, the country’s most popular destination for mineral exploring.
Only three locations on the list are in NSW, one of which (Menindee) is the hottest town in the state—the highest temperature on record was 49.7 °C. Swan Bay, on the other hand, boasts excellent living conditions, such as leafy areas (96%), extremely low crime rates and is less than 200 km from Sydney. The residents are predominantly older, though, so this might not be the number one choice for younger couples.
Related reading: How to find abandoned houses to buy
As you can see from the list above, most of the cheaper homes listed on the market are located in more remote areas.
In fact, the cheapest property sold in Australia recently is located in Sandstone, WA, 600 km from Perth and about two hours drive from the nearest supermarket.
If you are looking for cheaper homes located closer to city centres, there are a few that could provide you with good value for your money.
Cheapest Suburbs in Australia 2022
1. Elizabeth North, SA
- Median house price: $247,500
- Median house prices in closest capital city: Adelaide ($705,634)
- Proximity to CBD: 26 km
Elizabeth North is a northern suburb of Adelaide and one of the cheapest places in Australia to buy a house. The area has plenty of shops, pubs, restaurants and fitness & health centres as well as a good transport link to Adelaide through the Gawler Railway line. The population is predominantly younger (20 to 29-year-olds) and mostly made up of single parents.
2. Cannington, WA
- Median house price: $445,000
- Median house prices in closest capital city: Perth ($587,024)
- Proximity to CBD: 12 km
Cannington is one of the more affordable suburbs in the Perth area, with houses priced around $445,000. In addition to boasting some of the cheapest house prices in Australia, this suburb is a great place for families thanks to the numerous schools, daycare centres, and baby shops. It is also home to the Westfield Carousel, the largest shopping centre in the Perth metro area.
3. Bridgewater, TAS
- Median house price: $452,000
- Median house prices in closest capital city: Hobart ($782,748)
- Proximity to CBD: 19 km
Bridgewater used to have a very rough image, mainly due to a large number of public housing and residents of a lower social class. T one time it also had the highest proportion of cigarette smokers in the country. Lately, though, it has transformed into a nice place to live with around 18 parks and lots of pubs, cafes and restaurants.
4. Risdon Vale, TAS
- Median house price: $460,000
- Median house prices in closest capital city: Hobart ($782,748)
- Proximity to CBD: 10 km
While looking for an area with the cheapest houses in Australia, you might want to check out Risdon Vale, located 10 kilometres from Tasmania’s capital Hobart (voted one of the best places to live in Australia). This suburb has a small population of approximately 3,000 people, but it has a great community and plenty of sports, leisure and entertainment centres. Since houses are cheap they sell fast, staying an average of 8 days on the market.
5. Tingalpa, QLD
- Median house price: $839,777
- Median house prices in closest capital city: Brisbane ($884,336)
- Proximity to CBD: 10 km
This Brisbane-suburb is one of the best areas for families (9 out of 10 score). It has lots of schools, various amenities and plenty of greenery (there are 30 parks in the area). The majority of people in Tingalpa are permanent residents (61%), aged between 30 and 39 (16%) and working as administrative workers (19%).
6. Maidstone, VIC
- Median house price: $884,000
- Median house prices in closest capital city: Melbourne ($964,950)
- Proximity to CBD: 8 km
Maidstone is a Melbourne suburb, made up mostly of residential areas. People there are typically couples with children (aged 20 to 29), 53% of whom earn under $1000 a week. It is also a great place for golfers as a large part of the area is occupied by the Medway Golf Club. House prices might not be incredibly low, but they are considered cheap real estate for that part of Australia.
7. Evatt, ACT
- Median house price: $887,500
- Median house prices in closest capital city: Canberra ($1,047,912)
- Proximity to CBD: 9 km
Evatt, with its quiet neighbourhoods and green surfaces, is a great option for those who wish to escape the hustle and bustle of Canberra (and the high house prices), but still want to stay close. Keep in mind, though, that Evatt is an affluent area with the majority of residents being 40 to 49-year-old professionals who repay mortgages of $2,100 per month.
Which Are the Cheapest Suburbs by State and Territory?
Cheapest real estate in NSW
| Town/Suburb | Median house price |
| Swan Bay | $62,500 |
| Collarenebri | $62,500 |
| Menindee | $68,000 |
Cheapest houses in Victoria
| Town/Suburb | Median house price |
| Murrayville | $100,000 |
| Rainbow | $124,500 |
| Jeparit | $142,500 |
Cheapest houses in Queensland 2022
| Town/Suburb | Median house price |
| Augathella | $55,000 |
| Gin Gin (unit) | $66,250 |
| Laguna Quays (unit) | $70,000 |
Cheapest houses in Australian Capital Territory in 2022
| Town/Suburb | Median house price |
| Hacket (unit) | $297,000 |
| Hughes (unit) | $335,000 |
| Curtin (unit) | $342,000 |
Cheapest houses in South Australia
| Town/Suburb | Median house price |
| Andamooka | $20,000 |
| Coober Pedy | $61,500 |
| Fisherman Bay | $83,873 |
Cheapest houses in Tasmania
| Town/Suburb | Median house price |
| Rosebery (unit) | $112,900 |
| Rosebery (house) | $140,000 |
| Zeehan | $160,000 |
Cheapest houses in Western Australia
| Town/Suburb | Median house price |
| Norseman | $47,500 |
| Mount Magnet | $48,500 |
| Morawa | $55,000 |
Cheapest houses in the Northern Territory
| Town/Suburb | Median house price |
| Mount Johns (unit) | $195,000 |
| Batchelor | $205,00 |
| Gillen (unit) | $240,000 |
Bottom Line: Is It Worth Buying a Cheap House?
Buying one of the cheapest properties in Australia comes with many advantages. Lower prices mean you will need to take out a smaller home loan and in turn, pay less in mortgage repayments each month. It will also lower other house-buying expenses, such as stamp duty and transaction costs.
However, cheaper homes are not without risk. Most of them are located in rural areas, a great distance from amenities, large cities and resources. Prices are naturally lower in towns that have arid to hot desert climates, i.e. where living conditions are less than pleasant. Finally, the properties could be in bad shape and might need a lot of work—sometimes the cost of repairing the home could outweigh the savings you get from the price.
In the end, whether you go for a cheaper house in a less desirable location or a more expensive one located close to major cities is entirely up to you and your budget.
But before you start looking for the cheapest houses in Australia, make a wish list of what should be included in your ideal property and decide on the must-haves. Then start the house hunting process and only choose a cheaper home if it meets your criteria.
FAQs:
1. Where is housing cheapest in Australia?
The cheapest properties in Australia can be found in South Australia’s suburb of Andamooka, where median house prices are $20,000. Western Australia also has several small towns on the list of cheapest houses in Australia, with prices ranging from $47,500 to $55,000.
2. Will house prices drop in 2022 in Australia?
House prices have already started to drop in the June quarter, going down by 3.7% on average. The National Australia Bank (NAB) predicts dwellings prices to decrease further in 2023 by an average of 14%.
3. Are houses in Australia cheap?
There are cheap houses to be found in Australia, especially is rural areas where demand is not high. However, due to the recent drop in prices, and the bigger decline expected in 2023, housing in Australia will become more affordable for those who have the savings to either buy a home in cash or put up a higher deposit. Others will have to opt for mortgages with higher interest rates which might defeat the purpose of purchasing one of the cheapest houses in Australia in 2022.
