Australia is known for its expensive property markets, especially in major cities like Sydney and Melbourne where median house prices are over $1 million. However, look beyond the urban sprawl and you can find incredibly cheap houses across rural towns and regional areas. From a 2-bedroom cottage in Broken Hill going for just $29,000 to an off-grid oasis in Coober Pedy listed at $38,000, Australia still has affordable entry points into the property market.
For first-home buyers and investors willing to look further afield, these ultra-cheap houses provide excellent opportunities to get a foot on the property ladder. While they may require extensive renovations, their bargain price tags open up possibilities not available in established suburbs. With some vision and hard work, Australia’s cheapest houses can be transformed into comfortable homes, profitable holiday rentals or relaxing countryside retreats.
Cheapest House and Land Packages in Melbourne
Australia’s second largest city, Melbourne, is also not immune to rising house prices. The median house price is now over $970,000, putting homeownership out of reach for many residents. However, on the outskirts of Melbourne, affordable house and land packages are still available for under $400,000.
One of the cheapest options is located at 250 Evans Rd, Cranbourne West VIC 3977, approximately 50km southeast of the Melbourne CBD. This house and land package comes with a 3-bedroom home and a 405 sqm block of land for only $359,000^1^. The single-story home features an open plan kitchen and meals area, separate lounge room, master bedroom with walk-in robe and ensuite, and a double garage. The affordable package is perfect for first-home buyers looking to enter Melbourne’s property market without breaking the bank.
For those wanting to go even cheaper, there are 2-bedroom houses and land starting from $319,000 in developing suburbs like Officer and Pakenham. While these homes may be compact, the brand new builds and discounted land is an attractive proposition for buyers on a budget.
10 Cheapest Houses in Australia Right Now
Looking across Australia, it is possible to buy a house for well under $100,000 in many rural towns and regional centers. Here are some of the cheapest houses currently listed around the country:
1. 101 Creedon Street, Broken Hill, NSW 2880 – $29,000^2^
This 2-bedroom home in the far west mining town of Broken Hill is the cheapest house in Australia at the moment. While in need of complete renovation, it provides an affordable entry point into the property market.
2. Lot 905 Holly Crescent, Coober Pedy, SA 5723 – $38,000
Located in the opal mining town of Coober Pedy, this vacant block with approvals to build a 3-bedroom home represents dramatic value in the South Australian outback. The off-grid location features underground dwellings to escape scorching summer temperatures.
3. 21 Stevenson Street, Muswellbrook NSW 2333 – $45,000
In the Upper Hunter region of NSW, this 3-bedroom weatherboard home on 600 sqm of land is ripe for renovation. Close to schools and the town center, it has the basics covered at a bargain price.
4. Lot 37 Travers Street, Ceduna, SA 5690 – $45,000
Forget tiny apartments, in Ceduna you can buy a 792 sqm vacant block for the price of a car. The coastal town in the remote west of South Australia offers affordable land for those looking to build their dream home.
5. 46 Connaught Street, York, WA 6302 – $55,000
With charming rural appeal, this quaint 3-bedroom cottage in the Wheatbelt region comes fully furnished with all white goods. A cheap and cheerful option just two hours from Perth.
6. 57 Eighth Street, Tara, QLD 4421 – $65,000
The Western Downs region is a hidden gem for affordable properties like this renovator’s delight on 809 sqm. Located between Brisbane and Toowoomba, the low prices bring the Queensland countryside within reach.
7. 11 West Street, Zeehan, TAS 7469 – $65,000
The historic mining town of Zeehan on Tasmania’s West Coast has homes from $65,000. This property is currently leased for $100 per week, providing immediate returns on investment.
8. 127 Kauri Parade, Launceston, TAS 7250 – $69,000
With views overlooking the Tamar River, this neat 2-bedroom home comes fully furnished for under $70,000. The low price reflects the need for modernization and an elevated bushfire risk.
9. 24 Opal Street, Coober Pedy, SA 5723 – $79,000
Located amid the lunar landscapes of the South Australian outback, this above ground 3-bedroom home features a large lounge, updated kitchen and bathroom, and new solar system.
10. 64 Darling Street, Wentworth, NSW 2648 – $85,000
On the banks of the Murray River, this quaint weatherboard cottage oozes country charm. The affordable price reflects the small size at just 1-bedroom, 1-bathroom on 356 sqm.
Cheapest Places to Buy a House in Australia
Certain country towns and rural areas stand out for having genuinely affordable house prices compared to the nationwide average. Homebuyers looking for the cheapest options should focus their property search on these locations:
Broken Hill, New South Wales
Known for mining and the iconic desert landscapes, Broken Hill houses sell for a fraction of the cost of Sydney. Simple 3-bedroom homes start from around $60,000.
Mount Magnet, Western Australia
Located 370km northeast of Perth, regular homes are available in Mt Magnet for $90,000 to $150,000. The average house costs just $117,500^3^.
Coober Pedy, South Australia
Due to the extreme desert climate, homes are built underground in this opal mining town. Above ground houses start under $100,000.
Mount Gambier, South Australia
With a temperate climate and volcanic landscapes, houses in Mount Gambier average just $290,000 – the most affordable outside of Adelaide.
Tasmania
Known for its natural beauty, Tasmania offers very reasonably priced real estate across towns like Queenstown, Zeehan and Smithton.
Regional Queensland
Affordable towns include Emerald, Moura, Theodore and Clermont, where basic houses cost between $120,000 and $200,000.
Inland New South Wales
Outside of Sydney and the coastal hubs, homes in Hay, Hillston, Brewarrina and Walgett sell for less than $100,000.
Cheap Houses Offer Affordable Entry to the Property Market
For many Australians, buying a house still remains the great Australian dream. With median house prices in Sydney now at $1.3 million and Melbourne at $970,000, home ownership is increasingly out of reach, especially for first-home buyers. This is forcing more people into expensive rents or substandard apartments.
However, the ultra-cheap houses available in rural areas and regional towns highlight that affordable options still exist in the Australian property market. While they require compromise on location, these bargain properties provide a way to enter the market and start building equity.
In areas like Broken Hill, Mount Gambier, Regional Queensland and even outer suburban Melbourne, houses can be secured for under $100,000. This allows the possibility of purchasing with a typical household income rather than needing to be a dual-doctor couple working in the city.
The cheap homes offer excellent investment potential too. With some smart renovations and styling, the value can be significantly improved. For example, the rundown $55,000 cottage in York, WA could be beautifully transformed into a profitable holiday rental fetching $150 per night. Likewise, the $65,000 weatherboard in Zeehan, TAS is already tenanted at $100 per week, providing a steady passive income stream.
While the locations may not appeal to everyone, the ultra-affordable property prices enable more Australians to take those first steps towards financial security.
Current Property Market Trends in Australia
- Median house prices reached all-time highs in 2021 in most capital cities, hitting $1,066,100 in Sydney and $928,250 in Melbourne.
- The property boom has been fueled by record low interest rates and government stimulus measures.
- Since mid-2022, the market has started cooling with prices falling in Sydney and Melbourne as interest rates rise.
- However, houses in desirable suburban areas are still achieving strong sale prices, leaving first-home buyers priced out.
- Affordability has declined across the country, with Sydney requiring an average of 10 times the median income to buy a typical house.
- Regional markets have benefited from the shift to remote working, with cities like Geelong, Wollongong and Gold Coast seeing rapid price growth.
- In contrast, rural towns and country areas continue to offer very affordable real estate options for those willing to buy there.
- Ongoing housing undersupply in major urban centers, steady population growth and favorable tax rules will help maintain investor demand.
- But rising cost-of-living pressures and the prospect of more interest rate rises to curb inflation will dampen the market into 2023.
Features and Conditions of Cheap Houses in Australia
The ultra-cheap houses in rural towns and regional areas often share common features and conditions that underpin the affordable pricing:
- Old building styles, like weatherboard cladding, corrugated iron roofs and asbestos components
- Dated interiors – heritage kitchens and bathrooms from the 1960s/1970s prevail
- Limited modernizations or extensions – houses remain modestly sized
- Need for complete renovations including re-wiring, plumbing, roof repairs
- Large land sizes – cheap houses come with 500 sqm+ blocks allowing space to expand
- Basic fixtures – no air conditioning, no central heating, no double glazing
- Limited energy efficiency – poor insulation leads to noisy and damp conditions
- Aesthetic appeal – ramshackle presentation lowers buyer competition
- Low demand locations – lack of amenities and geographic isolation
- Climate extremes – very hot or very cold winter temperatures
- Proximity hazards – some rural properties are near mines or contaminated sites
- Onerous property sale conditions – short settlements required for bank finance
For buyers willing to overlook the obvious imperfections, the distressed conditions enable purchased at a fraction of typical market value. With extensive upgrades and modernization, these cheap houses could attain liveability and comfort.
Locations of the Cheapest Houses in Australia
The locations where Australia’s cheapest residential properties can be found share similar geographic and demographic characteristics:
- Old mining towns – Broken Hill, Queenstown, Mount Magnet, Zeehan
- Remote desert settlements – Coober Pedy, Leigh Creek
- Struggling rural townships – Tara, Ceduna, Moura, Hillston
- Regional centers far from cities – Whyalla, Port Augusta, Mount Gambier
- Outback communities – Birdsville, Andamooka, Marla
- Small Wheatbelt towns – Merredin, Lake Grace, Kununoppin
- Coastal areas prone to natural disasters – West Coast Tasmania, Northern Queensland
- Along the Murray River corridor – Wentworth, Renmark, Buronga
- Outer suburban new estates – Officer, Pakenham, Melton
Generally, the further away from large employment centers like Sydney, Melbourne, Brisbane and Perth, the cheaper property becomes. Isolated rural communities have weak job prospects, limited services and infrastructure and undesirable climates. But for those able to work remotely or seeking a tree/sea change, the low prices are enticing.
Challenges of Property Affordability in Major Cities
The ultra-expensive real estate in Australia’s state capitals like Sydney and Melbourne marks a stark contrast with the country’s cheapest housing markets. With median house prices over $1 million, homeownership has become almost unattainable for average residents:
- Median household incomes in Sydney ($120,000) and Melbourne ($104,000) are insufficient to cover mortgage repayments. Saving the 20% deposit of $200,000 takes years for most buyers.
- To purchase the median $1.3 million house in Sydney requires an income of $200,000 and deposit of $260,000.
- First-home buyers are largely priced out, unable to compete with high-income professional couples and property investors.
- Households are carrying record levels of mortgage debt compared to incomes, heightening risk of default if interest rates continue rising.
- Renting is unaffordable too, with median weekly rents in Sydney ($530) and Melbourne ($450) consuming large portions of wages.
- Restrictive planning laws, limited land releases and strong population growth exacerbates undersupply of properties.
- Proximity to CBDs and high-end amenities means wealthy buyers pay premium prices to live near the action.
While apartments provide a lower cost entry point, unsuitable designs and exorbitant strata costs diminish their appeal, particularly for families.
Property Investment Potential of Cheap Houses
The ultra-low price points of rural and regional housing provide an appealing opportunity for investors and developers. While cheap houses may not seem glamorous at face value, their underlying potential is immense:
- Renovation into luxury retreats – Major makeovers can transform humble homes into boutique showpieces for short stay holiday accommodation. Stylish, modern interiors and expansive outdoor entertaining areas can attract high rental rates from urban tourists.
- Improved energy efficiency – With good insulation, double glazing, solar power and heat pumps, cheap houses can be completely optimized to make them warmer, cooler and cheaper to run.
- Subdivision into multiple dwellings – Large blocks allow existing structures to be extended or additional independent living spaces to be built at minimal cost for extra rental return.
- Leasing to corporate tenants – Housing shortages in rural towns sees high demand from businesses for employee rentals. Local property managers handle all tenant liaison.
- Equity growth from area gentrification – Early movers may benefit down the track as more people discover the appeal and affordability of locations.
- Land banking for future development – Purchasing land now for the long term gives time to navigate regulations before eventually building modern residences.
While more remote or run-down locations require greater vision and patience from investors, the financial results from renovating and repositioning cheap properties can be outstanding given the low entry costs.
Suburban Opportunities in Affordable Regions
While rural towns and outback settlements contain Australia’s absolute cheapest houses, buyers looking for greater liveability can find good options in the outer suburbs of affordable cities like Adelaide, Hobart, Perth and regional hubs.
These locations balance the comforts and conveniences of suburban life with below average housing costs:
Adelaide, SA
Adelaide delivers a very high quality and affordable lifestyle. Median house price: $575,000
Top affordable suburbs include Salisbury, Elizabeth, Christies Beach.
Hobart, TAS
The Southern capital offers great scenery alongside reasonable property prices. Median house price: $579,000
Look in suburbs like Gagebrook, Herdsmans Cove, Chigwell.
Perth, WA
The west coast city remains one of the most affordable in the country. Median house price: $595,000
Affordable options in suburban Ellenbrook, Aveley, Harriet’s Field.
Geelong, VIC
Located just 75km from Melbourne, Geelong houses are around 40% cheaper. Median house price: $730,000
Armstrong Creek, Norlane, Bell Post Hill are among the most affordable areas.
Sunshine Coast, QLD
Beautiful beaches and laidback lifestyle without big city price tag. Median house price: $812,500
Consider Beerwah, Nambour, Warana, Buderim and Landsborough.
Newcastle, NSW
Australia’s second oldest city offers great value just north of Sydney. Median house price: $850,000
Suburbs like Birmingham Gardens, Cardiff, Boolaroo remain affordable.
While these cities all have a higher median house price than rural areas, there is comparatively much greater supply of well-located properties in the $300,000 to $500,000 price bracket.
Conduct Thorough Research Before Buying
Purchasing ultra-cheap housing in unfamiliar country towns and remote locations warrants careful due diligence from buyers:
- Inspect the property thoroughly – engage building experts to identify all defects and repair costs.
- Research the area’s economic opportunities – are there steady jobs and business activity?
- Check for upcoming infrastructure and mining projects – potential for growth?
- Validate any planned area improvements like new highways against council plans.
- Drive around and get a feel for the community’s vibe and amenity.
- Compare rental yields and vacancy rates to other locations to gauge demand.
- Explore insurance risks like flooding, cyclones and bushfires.
- Look into environmental hazards in the vicinity – mines, contaminated sites, fracking.
- Read council planning schemes to understand development limitations and obligations.
- Consult qualified tradespeople about renovation costs and challenges.
- Seek finance pre-approval to confirm available borrowing and repayments.
- Consider trialing the lifestyle by renting first before purchasing.
While the upfront price of cheap houses seems attractive, buyers need to look at the bigger picture regarding long term capital growth potential, rental yields and living standards to avoid disappointment. Conducting detailed due diligence minimizes the risk of surprises further down the track.
