Suburbs that still sell at a clear discount to their neighbours are hiding in plain sight across Australia, offering buyers a way into the market despite rapid price growth.
With typical home values now tens of thousands of dollars higher than a year ago in many capitals, those willing to look just beyond preferred postcodes can unlock better value and keep purchase plans on track.
Economists say these lower-priced areas are poised to outperform as affordability tightens.
REA Group executive manager of economics Angus Moore (pictured) noted that rising rates and higher prices are reshaping demand.
“We are already in an environment of challenging affordability and with rates moving up that's going to get worse,” Moore said. “That will probably favour more affordable parts of the cities, and more affordable cities.”
Recent PropTrack data shows 2025’s brief rate‑cut cycle lifted median values about 8%, with gains concentrated in cheaper suburbs and investor hotspots. While lower rates temporarily boosted borrowing power, not all markets benefited equally, and affordability has continued to worsen in many higher‑priced areas as rates moved higher again in early 2026.
In Sydney’s inner west, the real value sits just beyond the usual hotspots. Suburbs like Marrickville, Dulwich Hill, and Hurlstone Park now command medians well above $2 million, but nearby Canterbury and Campsie are still under that mark while sharing similar amenity and benefiting from the new Metro line due this year.
LJ Hooker Campsie agent Peter Kassas said demand from neighbouring areas is already strong.
“We’ve got an influx of buyers coming from Marrickville, Dulwich, and Summer Hill,” Kassas told PropTrack. “It’s six or seven minutes down Canterbury Road but it’s much more affordable.”
Two-bedroom apartments here can sell for $200,000 to $300,000 less than in Dulwich Hill, giving buyers and their brokers more breathing room on servicing.
Regional and outer‑city hubs are also emerging as affordability pressure valves. Goulburn, about an hour from Canberra and two hours from Sydney, has a median house price around $660,000 – less than half the cost of a typical Sydney house and cheaper than Canberra and the Southern Highlands.
One Agency Goulburn’s Patricia Murphy said the buyer mix has shifted.
“It used to be Canberra buyers that drove our market but that’s changed over the past five years and more people from Sydney have come this way,” Murphy said. “They’re discovering that it’s more affordable than other cities.”
Similar stories are playing out across the country. Melbourne’s Bayswater is still cheaper than Ringwood and Wantirna despite recent price growth, with Barry Plant’s Dean Kehagias saying, “It is undervalued in comparison.”
In Wodonga, prices remain well below Albury’s even as growth accelerates. Elders Real Estate’s Jamie Maynard describes Wodonga as “an emerging area” and “a more liveable city – it’s easier to get around, it’s got great schools, and it's obviously more affordable.”
For mortgage brokers and their clients, these suburbs are more than hidden gems – they are practical pathways to ownership while affordability is under strain.
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