Finding genuine “cheapies” in Australia’s capital cities is becoming harder, but it’s not impossible, according to Hotspotting director Tim Graham.
The top 10 list features houses and units across cities and regional areas in New South Wales, Victoria, South Australia, Tasmania, and the ACT.
“The common thread is not just low prices but an affordable entry into capital city markets where there is still a credible reason to expect future demand, rental strength, and long‑term growth,” Mr Graham said.
“In some locations, that means units in major employment and infrastructure hubs and, in others, it means houses in outer‑metro growth corridors where transport upgrades, population growth and new development are reshaping the market.”
Look beyond the price
Affordability alone does not necessarily translate to good investment value, as Hotspotting founder Terry Ryder puts it, “the pivot to identifying value as well as the potential for future growth is important”.
A viable prospect could be a lower priced apartment in a major city economy that has underperformed but starting to recover, or an affordable fringe market still benefitting from strong momentum.
Mr Ryder said, “as always, the emphasis is not on buying anything cheap but about buying the right type of asset in the right part of each market.”
“These are the ugly ducklings of city real estate, offering investors a realistic entry point into capital city property with both rental appeal and long‑term upside.”
Mr Graham added that regional Australia continues to offer strong combinations of affordability, yield and long‑term upside, but opportunities are becoming more selective.
“The broad surge that lifted many regional markets through and beyond the COVID‑19 years is no longer happening everywhere at once,” he said.
“Some locations have already had their major run, others are now stabilising, consolidating, or asking investors to be much more precise about where and what they buy.”
Top 10 ‘Cheapies with Prospects’
Ballarat (VIC)
Median house price range: $475,000 - $920,000
Described as “a cheapie relative to its size”, Mr Ryder said Ballarat remains one of the strongest selections due to its affordability, scale, economic depth, and major infrastructure investment.
“It’s no longer just a regional centre benefitting from Melbourne spillover, but is increasingly a substantial city in its own right, with a diversified economy supported by healthcare, education, logistics, manufacturing, and construction,” he said.
Investment opportunity: Established homes in solid suburbs with tight vacancy rates
Broken Hill (NSW)
Median house price: $220,000
Mr Graham said Broken Hill is an “absolute roughie”, best suited to experienced investors chasing strong cash flow.
“It offers a level of yield and affordability that’s almost impossible to find elsewhere in Australia,” he said.
Once seen as a “one-dimensional” mining town, Broken Hill’s economy is now supported by healthcare, tourism, and renewable energy. However, asset selection and risk tolerance matter greatly.
Investment opportunity: Houses in locations with good tenant quality
Gawler (SA)
Median house price range: $650,000 - $775,000
Gawler remains one of the few capital‑city fringe markets where houses are still relatively affordable, Mr Ryder said.
“Once seen mainly as a historic country town beyond Adelaide, Gawler is now evolving into a major northern growth corridor with better transport, expanding amenity, and substantial residential development,” he said.
While no longer dirt cheap, Gawler remains accessible compared with much of metropolitan Adelaide.
Investment opportunity: Houses-led market, buying a solid stock before affordability erodes
Glenorchy (TAS)
Median house price range: $551,000 - $700,000
Glenorchy offers a relatively affordable entry into the Greater Hobart market, while still benefiting from strong rental demand, improving infrastructure, and a broad economic base.
“The LGA combines proximity to major jobs and services with lower buy-in prices than many neighbouring parts of the capital,” Mr Graham said.
“What makes Glenorchy particularly compelling is that affordability is matched by consistency,” he added.
Transaction levels have remained steady, vacancy rates are extremely tight, and both houses and units continue to offer solid yields, per Hotspotting.
Suitable for: Investors seeking value in a capital city market
City of Melbourne (VIC)
Median unit price range: $310,000 - $705,000
Mr Ryder said the apartment market provides access to Melbourne at prices that remain relatively affordable.
He, however, clarified that “this is not a case of buying cheap for the sake of it”.
“The attraction is that demand is improving in a market where values have largely underperformed for several years,” Mr Ryder emphasised.
Transaction levels have lifted strongly, vacancies are now tight across the LGA, and yields are high by capital city standards.
Investment opportunity: Units
Melbourne
Muswellbrook (NSW)
Median house price range: $570,000 - $585,000
Muswellbrook combines affordability, strong yields, and an evolving post‑mining economic story.
“The LGA still benefits from mining-related employment and output, but it is also increasingly linked to renewable energy, transport and broader regional industry,” Mr Graham said.
For investors, the property market insights firm says the appeal lies in the ability to buy houses at relatively accessible price points while securing strong rental returns.
Investment opportunity: Established homes with solid liveability and lasting tenant appeal
City of Parramatta (NSW)
Median unit price range: $510,000 - $850,000
The unit market in Parramatta provides an accessible way to buy into “one of Australia’s fastest-evolving city economies”.
“Parramatta is now firmly established as Sydney’s second CBD… with strong transport links, deep employment bases, and major public and private investment,” Mr Ryder said.
Transaction volumes have been rising across a broad range of apartment markets, while rental yields are solid by Sydney standards and vacancies remain relatively tight in many parts of the LGA.
Investment opportunity: Units
Parramatta
Port Lincoln (SA)
Median house price: $535,000
Despite being considered as a “roughie” due to its remoteness, Mr Graham said Port Lincoln offers a diversified economy and lifestyle appeal.
“One of its key strengths is that the economy is supported by multiple sectors, including aquaculture, commercial fishing, tourism, manufacturing, agriculture, and emerging energy investment,” he said.
“This is not a roughie in the same way as Broken Hill; it is a more balanced regional market with substance behind it.
Investment opportunity: Houses
Wellington Shire (VIC)
Median house price range: $377,500 - $575,000
Mr Ryder said Wellington Shire offers a strong mix of affordability, yield, and future economic momentum in regional Victoria.
“The attraction for investors is that house prices remain affordable and yields are strong, while transaction levels have been rising across the LGA,” he said.
For investors seeking regional value with real economic drivers behind it, Wellington Shire stands out strongly, according to Hotspotting’s report.
Investment opportunity: Houses-led market where selectivity matters
Woden Valley (ACT)
Median unit price range: $350,000 - $669,000
Units in Woden Valley provide a relatively affordable entry into the Canberra market.
“Anchored by Phillip as its main commercial centre, the district combines major employment, retail, health, and education infrastructure with a growing pipeline of residential and mixed-use development,” Mr Graham said.
“Woden, therefore, fits the brief as a cheapies market with real infrastructure, employment, and long-term urban substance.”
Investment opportunity: Units
Images courtesy of Jyju Jossey, Kaiser Concha, MB on Pexels
