Detached homes in Australia’s big cities are becoming too expensive for many, pushing potential buyers toward the coast. Data shows that a person with a budget of $735,000 can now buy a beachside home for less than what a standard city apartment costs. A new study has identified 74 coastal areas where the median house price sits below this figure.
Based on PropTrack statistics, the average unit value across the nation’s capital cities is $735,000. This amount is enough to purchase a median-priced house in various coastal spots located in Queensland, Victoria, South Australia, and beyond.
The research reveals that median prices in these specific suburbs range from $330,000 in Solomontown, South Australia, to $732,500 in Old Beach, Tasmania.
Despite the lower prices, market conditions remain strong. 63 of the 74 suburbs saw their house values rise over the last year, while only 11 recorded a drop.
Higher interest rates force buyers to rethink
Realestate.com.au Senior Economist Eleanor Creagh noted that rising interest rates are changing buyer habits. People are having to reassess their budgets and decide where they are willing to live.
“As higher interest rates reduce borrowing capacity, buyers are increasingly having to make trade-offs around location, dwelling type, and size,” Ms. Creagh said.
“More affordable regional markets remain accessible to a larger pool of buyers than many capital city alternatives.”
This shift indicates that economic pressures are making coastal properties more attractive. Once considered luxury items, these homes are now viable options for those moving away from urban centers.
Queensland and Victoria lead with affordable options
Queensland and Victoria provide the most choices on the list, accounting for 34 of the 74 suburbs, with 17 locations in each state meeting the affordability target.
In Queensland, Scarness in the Wide Bay region has a median price of $730,000, while Emu Park in Central Queensland is listed at $729,000.
Further north, Eimeo in the Mackay region comes in at $715,000, and Bowen offers a lower starting point at $570,000.
Cardwell, located in the Cairns region, is another affordable option with a median house price of $542,000. However, it also posted annual price growth of 46.5%, proving that even cheaper coastal markets can see significant value increases.
Victoria offers a diverse selection of spots, ranging from established holiday destinations to regional towns.
Cowes on Phillip Island has a median house price of $710,000, while Lakes Entrance in Gippsland is priced at $560,000.
Venus Bay is even more affordable, with a median of $497,500 after a 1.5% decrease over the past 12 months.
Other Victorian markets are growing despite staying under the capital city unit benchmark. Portland, in the state’s southwest, saw a 22.6% rise in median house prices to $505,000, and Coronet Bay increased 19.2% to $620,000.
Varied growth across coastal markets
New South Wales has the fewest options, with Sunshine Bay on the South Coast being the only location where the median house price dropped below $735,000.
Sunshine Bay’s median was $730,000, just $5,000 under the combined capital city unit benchmark.
South Australia is home to some of the most affordable spots. Solomontown had the lowest median house price in the country at $330,000, followed by Port Augusta at $340,000 and Ceduna at $362,500.
In Tasmania, George Town had a median house price of $475,000, Devonport was at $601,000, and Old Beach reached $732,500.
Western Australia also made the list, with Geraldton recording a median house price of $599,000 and Port Denison at $640,000. Port Denison’s median increased 25.5% over the past year, while Geraldton recorded growth of 18.6%.
