Revealed: NSW’s cheapest suburbs with best lifestyle, value growth

Home values are expected to rise rapidly in a range of Sydney suburbs where it’s still possible to buy houses for under $800,000, a new study shows. See the full list

They’re the well-connected suburbs with improving infrastructure – where home seekers can buy properties for cheap, before local prices skyrocket.

Sydney’s best property “buying opportunities” have been revealed in an exclusive new report, which measured suburbs on five key indicators of affordability, lifestyle and growth potential.

It showed the city’s fastest growing suburbs offering the best mix of affordability and amenities were in the inner west, Sutherland Shire, Sydney’s far west and the outer southwest.

They included Gymea, Burwood, Stanmore and Mascot, along with west suburbs Lurnea, Rosemeadow, Bradbury, Rooty Hill and more.

Properties in many of these suburbs (mostly units) could be bought with an initial outlay of between $93,000 and $150,000, according to the Canstar and Hotspotting research.

Marwah Haideria’s family bought a home in Rooty Hill, rated in the research as one of the best places to buy a home at the moment. Picture: Max Mason-Hubers

This included a 10 per cent deposit and stamp duty costs, which would be reduced due to the prices being under the $1m caps for government first homebuyer discounts.

Canstar’s editor-at-large Effie Zahos said the report proved it was still possible to buy in desirable, growth suburbs with a smaller budget.

“Deposits used to be the big hurdle, but cashflow is now becoming the major risk,” Ms Zahos said, noting that the lower prices in the identified areas made servicing loans easier amid rising interest rates.

Mortgages were only marginally more expensive than paying rent in some of the Sydney suburbs on the list, Ms Zahos added.

Hotspotting director Terry Ryder said there was a good opportunity for first homebuyers and investors to get into the market before another price surge.

Current prices in most areas remained well below their peaks in 2021 and early 2022 but recent sales patterns showed price growth was picking up, Mr Ryder said.

“The best you can do as a buyer is purchase well in a good area when it is down and before prices grow again,” he said. “There are a lot of good opportunities to do this, to buy in markets that are less competitive than they were back in the boom times.”

Mr Ryder said the report showed that climbing the property ladder was “not hopeless” for first-time buyers if they were prepared to compromise and make sacrifices.

“Buying a home is achievable with the right mindset and if you compromise on what you buy and where. The problem is that a lot of people expect their dream home right away.”

He said it would be more prudent for buyers to consider units or homes in outer suburbs likely to record price growth with the view of selling up in a few years.

Ray White St Marys principal Peter Diamantidis said the Mt Druitt region was becoming more popular because of coming train links to the second Sydney airport.

“The second home or the third home can be the dream home. In the meantime you have to accept something that’s not the dream to get a foot on the ladder,” he said. “The more intelligent buyers think independently and buy in markets when they are down.”

Rooty Hill resident Marwah Haideri said she wasn’t surprised to hear the local area was flagged for growth.

“It’s changed a lot in 20 years,” she said. “There’s a lot of new infrastructure, a new mall. It’s a lot more convenient and there’s more parks and sporting facilities than before.”

Ms Haideri and her family recently bought a double-storey house in the area through Ray White agent Peter Diamantidis and said the area was becoming more popular.

“It was hard to find parking on the street at the opens homes I went to, they were usually packed,” she said. “I’m pretty stoked with what I got.”

Originally published as Revealed: NSW’s cheapest suburbs with best lifestyle, value growth