As home prices climb across the country, a new analysis reveals that buyers in Sydney must now look at least 24 kilometres from the city centre to find a house under $1 million. Meanwhile, other capitals such as Melbourne, Adelaide and Hobart still offer houses below that threshold within or near their central business districts.
This contrast underlines the widening gap between capital cities and their accessibility for middle-income earners, particularly young families seeking proximity to work, schools, and public infrastructure. As prices surge, housing affordability remains a pressing concern in the urban landscape of Australia.
Sydney Pushes Affordability Further West
According to recent research by Domain, the closest suburb to the Sydney CBD where the median house price remains under $1 million is Girraween, located 24 kilometres west of the city, with a median of $976,250. The study highlights that affordability in Sydney now largely resides in the outer western and south-western suburbs, such as Liverpool ($995,000), Lurnea ($985,500), Glenfield ($958,000), and Macquarie Fields ($790,000).
Nicola Powell, Domain’s Chief of Research and Economics, told Yahoo Finance that Sydney buyers are being pushed far from the inner and middle rings. “To buy a house under a million dollars in Sydney, you’re really being forced into the outer suburbs,” she said. This often limits options to townhouses and semi-detached properties, rather than standalone houses, particularly within suburbs that barely meet the pricing threshold.
The broader implications for urban planning and infrastructure are significant. With demand spreading into more distant areas, commute times are expected to rise, and pressure will likely increase on transport networks and local services. Sydney, long considered the most expensive city in the country, continues to see a net outflow of residents, especially among families seeking home ownership opportunities.
Other Capitals Offer Better Proximity and Value
While Sydney stretches buyers to the periphery, other major cities present more central options under the million-dollar mark. In Melbourne, the inner-western suburb of Footscray, just eight kilometres from the CBD, has a median house price of $900,000, offering close proximity at a lower price point. Powell described Melbourne’s market as having “underperformed over the last five years,” creating better short-term value for buyers.
Adelaide offers perhaps the most compelling case, with the CBD itself reporting a median house price of $919,900. The same is true for Perth, where several central suburbs including East Perth, Highgate, and West Perth remain well under the million-dollar line, with citywide median prices as low as $563,000. Darwin’s closest affordable suburb is Stuart Park ($665,000), while Hobart’s South and West Hobart suburbs come in at $868,000 and $924,000, respectively.
The findings illustrate a stark divide between Sydney and the rest of the country in terms of access to central housing. While price growth is forecast to continue across the capitals, regional migration and outer suburban demand are reshaping the housing narrative for millions of Australians.
