First-home buyers locked out of Australia’s most exclusive suburbs by soaring house prices can save up to $2 million by choosing apartments over houses in the same postcodes, new analysis reveals.
The research by Ray White chief economist Nerida Conisbee (pictured) examined suburbs offering the biggest price gaps between houses and apartments, identifying opportunities for first-time buyers to access premium locations for under $750,000.
Perth’s exclusive Mosman Park-Peppermint Grove topped the national rankings, with apartments priced at $552,000 compared to houses averaging $2.51 million – delivering savings of $1.96 million for buyers willing to compromise on property type rather than location.
Melbourne dominated the top 10 opportunities, claiming six positions. Hawthorn South ranked second nationally with apartments at $560,000 providing access to one of the city’s most prestigious inner suburbs, where houses average $2.48 million.
“If you buy an apartment in these suburbs, you aren’t getting compromised locations or second-tier suburbs,” Conisbee said. The analysis focused on “some of Australia’s most prestigious addresses: riverside Perth enclaves, Melbourne’s inner-city havens, and Canberra’s parliamentary triangle neighbourhoods.”
Other Melbourne suburbs in the top 10 included Armadale with apartments at $735,000 delivering $1.9 million in savings, Malvern-Glen Iris at $718,000 for $1.9 million savings, and Hawthorn North at $655,000 for $1.8 million savings.
Canberra secured two national top 10 positions, with Griffith apartments at $685,000 and Reid units at $617,000 both offering savings exceeding $1.6 million.
Sydney’s opportunities were led by Homebush, where apartments at $677,000 delivered $1.6 million in savings over houses, followed by Eastlakes at $718,000 and Hurstville Central at $741,000.
Brisbane’s riverside elite included Hamilton apartments at $717,000, Clayfield units at $689,000, and Wilston properties at $737,000, all providing savings between $1.2 million and $1.5 million.
The analysis used geometric mean property prices to reduce the impact of extreme values that can skew simple averages. Only areas where apartment prices remained under $750,000 were included to ensure opportunities remained within typical first home buyer budgets.
Regional Australia also featured opportunities, with Queensland claiming six of the top 10 regional positions. Townsville’s North Ward led at $466,000, followed by Port Douglas at $490,000.
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