Damon Mcknight
Australia is home to some of the world's least affordable cities, with median home values in Sydney and Melbourne topping $1 million. However, there are other, more affordable options for prospective homebuyers. Tasmania, an island state off the southeast coast of mainland Australia, is the country's smallest state and cheapest housing market. In Tasmania's capital city of Hobart, home prices are roughly 25% lower than the national average. Beyond Tasmania, South Australia, Western Australia, and the Northern Territory also provide budget-friendly housing options.
| Characteristics | Values |
|---|---|
| Cheapest State | Tasmania |
| Cheapest Capital City | Darwin, Northern Territory |
| Median House Price in Darwin | $500,228 |
| Median House Price in Hobart, Tasmania | 25% lower than the national average |
| Median House Price in Sydney | $1 million+ |
| Median House Price in Melbourne | $1 million+ |
| Median House Price in Coober Pedy, SA | $72,000-$78,000 |
| Cheapest Suburbs in Tasmania | Mayfield, Queenstown, Rosebery |
| Cheapest Suburbs in South Australia | Pekina, Norseman |
| Cheapest Suburbs in Western Australia | Trayning, Norseman, Kambalda East, Mount Magnet |
| Cheapest Suburbs in Queensland | Mount Isa, Burrum Heads |
| Cheapest Suburbs in New South Wales | Broken Hill, Wellington, Warwick Farm, North Tamworth, Lavington, Muswellbrook |
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What You'll Learn
Tasmania: the cheapest state to buy property
Tasmania is the cheapest Australian state to buy property, with median house prices significantly below the national average. Its capital, Hobart, is the seventh cheapest capital city in Australia, with a median property price of $651,043. Regional Tasmania is also affordable, with a median price of $523,391.
Tasmania's housing market offers something for everyone, whether you're a nature enthusiast, a history buff, or someone seeking suburban comfort. Suburbs like Mayfield, Queenstown, and Rosebery offer natural beauty, affordability, and distinct local characters. The state's rich history, serene living environments, and unparalleled natural beauty make it a hotspot in the Australian property landscape.
While Tasmania is the cheapest state overall, specific suburbs and towns within the state may have higher prices due to factors such as infrastructure developments, growing buyer confidence, and improving local confidence. For example, Kingston, one of Hobart's promising growth areas, has a median house price of $743,000. Similarly, North Hobart saw impressive annual growth of 22.2% in 2024, with a median house price of $978,000.
Outside of Tasmania, there are also budget-friendly housing options in other Australian states. South Australia, Western Australia, and the Northern Territory offer median prices lower than most other states. Cities like Hobart, Adelaide, and Perth are noted for their low cost of living, offering affordable housing expenses and a more relaxed lifestyle compared to larger cities.
With its affordable housing options and unique attractions, Tasmania presents a blend of value, charm, and natural beauty for prospective homebuyers.
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South Australia: budget-friendly housing
With property prices in Australian capital cities like Melbourne, Canberra, and Sydney skyrocketing, many are looking for more affordable housing options. Tasmania is currently the cheapest state to buy property in Australia, but South Australia is also a great option for budget-friendly housing.
South Australia has a variety of budget-friendly housing options, with median prices lower than in most other Australian states. For example, the suburb of Pekina in South Australia has a median house price significantly lower than in other regions, making it one of the cheapest suburbs in the state. Located just 13 km south of Orroroo in the Southern Flinders Ranges, Pekina offers a peaceful rural lifestyle and plenty of room to expand and customise your property.
Another option for budget-conscious buyers is the suburb of Coober Pedy, located 846 km north of Adelaide. Known as Australia's outback opal capital, Coober Pedy offers a unique opportunity to live in an above-ground dwelling, as the town is renowned for its below-ground homes. You can find a basic one-bedroom home in this town for around $85,000.
The South Australian government is also committed to providing affordable housing options for its residents. The HomeSeeker SA program, managed by the SA Housing Trust, supports moderate-income households in achieving their dream of home ownership. The program provides listings of affordable properties, as well as information on the home-buying process, budgeting, and saving.
Additionally, the state government has allocated funding for affordable housing initiatives. For example, the Southwark Master Plan project will provide up to 1,300 dwellings, with 20% designated as affordable housing. The state has also committed to continuing property and tenancy management services for remote Aboriginal communities, with 100 properties under construction as part of the Affordable Housing Initiative.
So, if you're looking for budget-friendly housing in Australia, South Australia is definitely worth considering. With its affordable suburbs, government initiatives, and support programs, it offers a great opportunity for those seeking to achieve their dream of home ownership without breaking the bank.
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Darwin, Northern Territory: cheapest capital city
As of 2025, Tasmania is the cheapest state to buy property in Australia. It offers serene environments and below-average house prices, with median house prices significantly below the national average.
Darwin, the capital city of the Northern Territory, is currently the cheapest capital city in Australia to buy a house. According to Corelogic's Housing Value Index released on 31 January 2023, Darwin has the lowest median housing value at $500,228. The latest Domain House Price Report shows the median house price in Darwin is $592,976, while units are even more affordable at $330,559.
Darwin's property prices are even cheaper than they were a decade ago, making it an attractive option for first-home buyers and investors alike. The city has consistently high rental yields, and its "'boom and bust' nature means it is currently in a lull, providing an opportunity for investors to get in before the next rise.
While Darwin offers affordable buying options, it has become the second most expensive capital city to rent a house in Australia, with a median asking rent of $700 per week for houses and $560 per week for units. This high rental price is due to a mismatch in supply and demand, with a rental vacancy rate of just 0.6%.
Darwin's affordable buying prices and high rental yields make it an attractive option for investors, while its status as the last capital city with a median price under $600,000 makes it an appealing choice for first-home buyers priced out of other capital cities.
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Queensland: Mount Isa's affordable homes
Tasmania has been named the cheapest state to buy property in Australia, with its capital, Hobart, offering home prices 25% lower than the national average. The state boasts serene environments, natural beauty, and affordable housing options, making it a hotspot for prospective homebuyers.
However, if you're specifically looking for affordable homes in Queensland, Mount Isa in Western Queensland is a great option. With a median house price of $140,000 in 2023, Mount Isa offers a three-bedroom house with a bath on a 673m² plot for $59,000. While the property may need some renovation, you can expect an annual rental yield of 4.6%. Mount Isa is known as the 'heartbeat of North West Queensland', offering a unique blend of outback charm and modern conveniences.
Other affordable areas in Queensland include Mount Morgan and Granville, where you can find budget-friendly homes.
In addition to Tasmania and Queensland, there are other states in Australia that offer budget-friendly housing options. South Australia, for example, has a median house price significantly lower than most other states, with the opal mining town of Coober Pedy boasting a median house price of $72,000 to $78,000.
Additionally, Western Australia has affordable housing in regional areas like Trayning, where you can find comfortable homes with spacious plots for below the national average.
For those seeking city living on a budget, Darwin in the Northern Territory currently holds the title of the most affordable capital city, with a median housing value of $500,228 as of January 2023.
So, while Tasmania and Queensland offer attractive options, there are also affordable homes in other Australian states, depending on your preferences and budget.
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Western Australia: cheap homes in Trayning
Australia is known for its expensive property prices, with median house prices in cities like Melbourne and Canberra exceeding $1 million. However, there are still some affordable gems to be found, especially in rural areas. Tasmania is currently the cheapest state to buy property in Australia, offering serene environments and below-average house prices.
However, if you're specifically looking in Western Australia, the town of Trayning offers a median house price far below the national average. This makes it an excellent option for those seeking cheap homes in the state. Located in the Wheatbelt region, Trayning is a small town with a population of around 200 people. It's known for its friendly and tight-knit community, and its quiet, peaceful surroundings.
One notable property in Trayning boasts three comfortable bedrooms, one bathroom, and an additional sleep-out area. The residence also includes a separate outdoor laundry area for convenience. Outside, there's a spacious 1012m² plot, along with a carport. Utilities like electricity and water are included in the price, which is a huge plus.
Trayning offers a quiet and relaxed lifestyle, perfect for those seeking a slower pace of life. The town has a few local shops and amenities, and the nearby towns of Wyalkatchem and Koorda provide additional services. For those who enjoy the outdoors, Trayning has a golf course and is surrounded by picturesque farmland and nature reserves.
While it may be a small, lesser-known town, Trayning presents an attractive option for homebuyers on a budget. With affordable housing and a peaceful rural lifestyle, it's an ideal choice for those seeking a tight-knit community and a break from the hustle and bustle of city life.
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Frequently asked questions
Tasmania is the cheapest Australian state to buy a house, with median house prices significantly below the national average. However, South Australia is also considered the most affordable state overall, when you take into account factors like employment opportunities and income levels compared to home prices and the cost of living.
Some of the cheapest places to buy a house in Tasmania include Mayfield, Queenstown, Rosebery, and Zeehan.
Some of the cheapest places to buy a house in South Australia include Coober Pedy, Pekina, and Adelaide.
