Australian suburbs see increased affordability amid property market downturn

Research by PRD Real Estate identifies a growing number of affordable, liveable suburbs within 20 kilometres of the CBDs in Sydney, Melbourne and Brisbane as property prices soften. Suburbs such as Sydney’s Regents Park, Melbourne’s Epping and Brisbane’s Taigum now meet affordability benchmarks, with median house and unit prices falling enough for buyers to save roughly $50,000 compared with a year earlier. PRD chief economist Dr Diaswati Mardiasmo warned that “the window on at least half this year’s list could slam shut within 12 months” if further cash‑rate hikes occur.

At the same time, a Cotality report shows owners in high‑density neighbourhoods are selling at a loss, especially where large‑scale unit developments have added supply. In Melbourne’s CBD, 49 % of unit resales lost money; in Sydney’s Strathfield and Parramatta LGAs, around 21 % of sales were loss‑making. Analysts attribute the downturn to three interest‑rate hikes, recent tax changes, and broader cost‑of‑living pressures, forecasting house‑price declines of 7‑8 % in Sydney and Melbourne over the next year.