Homebuyers would be hard-pressed finding a house for less than $500,000 in a capital city, but there are plenty of regional towns around Australia where that’s entirely possible.
The median price for a house across the capitals is just under $1 million, according to the latest PropTrack Home Price Index.
It costs almost $1.5 million to buy a house in Australia’s priciest capital, Sydney, and even the most affordable capital, Darwin, has a median price of $580,000.
But it’s a very different situation in the regions. There are hundreds of towns and suburbs across regional Australia where house prices are much cheaper than in the capitals.
Analysis of PropTrack data has uncovered 41 regional towns that have a median house price of between $450,000 and $500,000.
Many of these towns are within a few hours’ drive of a capital, while others are a little more remote. A few are coastal gems, or within reach of a beach.
Regional NSW suburbs with median house prices under $500,000
| Suburb | State | Region (SA4) | Median house price | 12 month change |
| Corowa | NSW | Murray | $460,000 | 10.2% |
| Casino | NSW | Richmond – Tweed | $460,000 | 5.4% |
| Gunnedah | NSW | New England and North West | $462,000 | -1.6% |
| Young | NSW | Capital Region | $464,000 | -1.3% |
| Forbes | NSW | Central West | $475,000 | 18.8% |
| Coolamon | NSW | Riverina | $477,000 | 7.2% |
| Tumut | NSW | Riverina | $490,000 | 8.9% |
| Lithgow | NSW | Central West | $490,000 | -1.5% |
| Aberdeen | NSW | Hunter Valley exc Newcastle | $495,000 | 2.1% |
| Grafton | NSW | Coffs Harbour – Grafton | $500,000 | 5.3% |
| Kootingal | NSW | New England and North West | $500,000 | 4.2% |
| Howlong | NSW | Murray | $500,000 | 0.0% |
While houses in these towns remain affordable compared to the capitals, prices in many have boomed over the past year, with about half recording double-digit growth.
In a handful of towns, prices have doubled in about five years – twice as fast as in Sydney, where it’s taken 10 years for the city’s median price to double.
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House prices have doubled over the past five years in Murray Bridge, about an hour west of Adelaide, but the town’s median price is still less than $500,000. Picture: realestate.com.au/sold
In others, markets have remained flat or pulled back after a strong period of growth, making it relatively easier to buy in.
Affordability drives regional house price growth
Recent research from the Regional Australia Institute shows people are still flocking to the regions from the cities amid the ongoing cost of living crunch.
Regional Victoria suburbs with median house prices under $500,000
| Suburb | State | Region (SA4) | Median house price | 12 month change |
| Benalla | VIC | Hume | $450,000 | 2.6% |
| Mildura | VIC | North West | $452,000 | 2.7% |
| Seymour | VIC | Hume | $455,000 | -3.7% |
| Shepparton | VIC | Shepparton | $460,000 | 7.0% |
| Kyabram | VIC | Shepparton | $466,000 | 1.3% |
| Swan Hill | VIC | North West | $480,000 | 9.7% |
| Colac | VIC | Warrnambool and South West | $480,000 | -1.0% |
| Sale | VIC | Latrobe – Gippsland | $491,000 | 2.3% |
About 36% more people moved from the cities to the regions than in the opposite direction in the September quarter of 2024, the research shows.
This data reflects a long-term trend, with greater housing affordability in the regions remaining a key driver.
The median price in Kapunda, about an hour north of Adelaide near the Barossa Valley, is up 22%, but a typical house still costs less than $500,000. Picture: Getty
The latest PropTrack Home Price Index shows that at the national level, a median-priced home in regional Australia is about 25% cheaper than a median-priced capital city home.
Despite home prices growing 60% since the pandemic in the regions, compared to 40% in the capitals, it’s still hundreds of thousands of dollars cheaper to buy a home outside a capital city.
Regional South Australia suburbs with median house prices under $500,000
| Suburb | State | Region (SA4) | Median house price | 12 month change |
| Wallaroo | SA | Barossa – Yorke – Mid North | $463,000 | 20.1% |
| Murray Bridge | SA | South Australia – South East | $468,000 | 19.9% |
| Port Lincoln | SA | South Australia – Outback | $470,000 | 14.6% |
| Mount Gambier | SA | South Australia – South East | $480,000 | 20.0% |
| Kapunda | SA | Barossa – Yorke – Mid North | $483,000 | 22.2% |
Even over the past year, prices grew faster in the regions (5.12%) than in the combined capitals (4.59%).
PropTrack senior economist Anne Flaherty said population flows towards the regions were still supporting price growth long after the pandemic boom.
Affordability is a key factor driving people to relocate to the regions, and a handful of regional cities such as Port Lincoln still offer seaside living for under $500,000. Picture: Getty
“While the surge in regional living seen during the pandemic has long since tapered off, net intrastate migration away from capital cities to regional areas continues, driving demand for regional housing,” she said.
“At the same time, new home construction in many regions is failing to keep up, leading to increased competition and higher prices for many of the homes that do hit the market.”
Regional Queensland suburbs with median house prices under $500,000
| Suburb | State | Region (SA4) | Median house price | 12 month change |
| Goondiwindi | QLD | Darling Downs – Maranoa | $450,000 | 13.2% |
| Warwick | QLD | Darling Downs – Maranoa | $455,000 | 19.7% |
| Mackay | QLD | Mackay – Isaac – Whitsunday | $460,000 | 18.7% |
| Atherton | QLD | Cairns | $466,000 | 8.4% |
| Mareeba | QLD | Cairns | $470,000 | 14.6% |
| Howard | QLD | Wide Bay | $478,000 | 14.4% |
| Proserpine | QLD | Mackay – Isaac – Whitsunday | $485,000 | 27.6% |
| Pittsworth | QLD | Darling Downs – Maranoa | $485,000 | 15.5% |
| Stanthorpe | QLD | Darling Downs – Maranoa | $493,000 | 17.3% |
| Boyne Island | QLD | Central Queensland | $495,000 | 10.0% |
Property markets in many of the regional towns where house prices are below $500,000 have boomed recently, particularly in Queensland, South Australia and Western Australia.
Prices in the Queensland town of Howard, near Hervey Bay, have doubled in the past five years, but a typical house still only costs $478,000 — less than half the cost of a typical Brisbane house.
Meanwhile in Proserpine, a town of about 3600 people in Queensland’s Whitsunday region, house prices have jumped about 28% over the past year.
This four-bedroom Queenslander on a leafy 1112sqm block in Proserpine sold for $520,000 late last year. Picture: realestate.com.au/sold
Local real estate agent Lynne Erricker of Ray White Whitsunday said Proserpine’s schools and affordability drew an influx of younger buyers to the town, while older buyers in the area were looking to downsize.
“There are many elderly people from the rural areas coming off acreage and wanting to come into town,” she said. “And then you’ve got young people coming into town because of affordability.”
However, a lack of housing stock and available land for building was pushing prices up amid strong demand.
Regional Western Australia suburbs with median house prices under $500,000
| Suburb | State | Region (SA4) | Median house price | 12 month change |
| Harvey | WA | Bunbury | $450,000 | 30.4% |
| York | WA | Western Australia – Wheat Belt | $459,000 | 22.3% |
| Esperance | WA | Western Australia – Outback (South) | $470,000 | 3.9% |
House prices jumped 30% over the past year in the Western Australian town of Harvey, about 140km south of Perth, which local real estate agent Carlo Celisano of LJ Hooker attributed to a shortage of homes on the market.
He said many buyers were attracted to Harvey due to its affordability compared with places like Bunbury to the south and Mandurah to the north.
“I’ve had young couples who were trying to buy in Bunbury and have come here because it’s more affordable,” he said.
This humble two-bedroom cottage on a 1292sqm block in Harvey sold for $320,000 late last year. Picture: realestate.com.au/sold
Perth and Adelaide have been the strongest performing capitals over the past year, with rising prices encouraging buyers to look further afield for affordable homes.
Buyers looking for an affordable home in the regions don’t always have to contend with rapidly rising markets, with prices in towns like Lithgow and Gunnedah in NSW and Seymour in Victoria declining slightly over the past year.
Regional Tasmania suburbs with median house prices under $500,000
| Suburb | State | Region (SA4) | Median house price | 12 month change |
| Beauty Point | TAS | Launceston and North East | $470,000 | 10.6% |
| Devonport | TAS | West and North West | $472,000 | 3.3% |
| Deloraine | TAS | Launceston and North East | $500,000 | 2.2% |
Most of the regional suburbs priced under $500,000 are inland, and range from small country towns to major centres such as Grafton, Mildura, Shepparton and Mount Gambier.
In these larger towns and cities, employment opportunities can attract new residents while diverse economies are better placed to weather boom and bust cycles than towns dominated by one industry such as mining.
Esperance on Western Australia’s south coast is one of only a handful of coastal towns with a median house price around the $500,000 mark. Picture: Getty
But for buyers seeking a coastal town, there are still a few options for around the $500,000 mark, including Wallaroo and Port Lincoln in South Australia, Mackay and Boyne Island in Queensland, Esperance in Western Australia and Devonport in Tasmania.
