Rising house prices across Australia have seen buyers scramble to find properties offering the best value for money, including Canberra, where the sentiment echoed throughout the industry is how high demand has been.
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The heightened buyer demand, coupled with low stock, has not only lifted the city's overall median house price past the $1 million mark but has also pushed housing affordability further out of reach for many buyers.
The latest Domain House Price Report for the September quarter shows the top 10 most affordable suburbs in which to purchase a house all have a median house price of more than $600,000 but less than $700,000.
The most affordable suburb in which to buy a house was Richardson, in Tuggeranong, which had a median house price of $644,000. This was followed by Ngunnawal, in Gungahlin, at $653,000, and Holt, in Belconnen, at $660,000.
"These suburbs are suburbs I'd consider as some of the most affordable areas in Canberra," said Jacob Stanton of The Property Collective. "But there has been some growth in terms of that affordable aspect. Because the overall market has had such strong growth, it's only natural for house prices in these areas to also increase and push that envelope of affordability even further."
Of the 10 suburbs listed, four were located within the Tuggeranong region, four in Belconnen and the remaining two in Gungahlin.
"If house prices in Canberra's inner-city suburbs are creeping up, buyers are being pushed out, so looking at properties further from the city-centre is a flow-on effect from that," Mr Stanton added.
The median house prices of Canberra's most affordable suburbs are just below the entry-level price for a property in the capital, which is $691,000, according to Domain's First-Home Buyer Report.
The research assumes a couple on an average income in their respective city, between 25 to 35 years old, can save 20 per cent of their pay in a standard online savings account. This doesn't take into account any transactional costs incurred in buying property.
To save a 20 per cent deposit for a house at that price, first-home buyers in Canberra would have to save for exactly six years.
Sarah Cooper of Canberry Properties said the time it took to save for a deposit on a house or townhouse had "forced some property hunters into the apartment market", drawn by their affordable prices.
"First-home buyers are the ones driving apartment sales ... and have opted to purchase an apartment now to escape the competitiveness in the housing market, with plans to reassess their property decisions in two years time," Ms Cooper said.
According to the Domain House Price Report, the most affordable Canberra suburb in which to purchase a unit was in Bruce, in Belconnen, which has a median unit price of $367,000. This was followed by Gungahlin, within the Gungahlin region, at $390,000, and Harrison, also in Gungahlin, at $412,000.
"When you look at the top 10 suburbs to buy a unit, these are suburbs that have a heightened supply of apartments and there's also a variety of units available - including new and old units," Ms Cooper said.
"But it's not just the affordability factor drawing buyers to apartments, it's also its closeness to town centres. Take Bruce and Belconnen units, for example. The infrastructure surrounding those suburbs has really taken off recently.
"It's become an attractive destination for owner-occupiers and investors because of those nearby amenities, hubs and transport."
