Bargain buys: The cheapest house sales around the country

A highset unliveable Queenslander with a long list of repair work needed, including final plumbing and drainage approvals, was the cheapest home to sell in Australia in April for a modest $220,000.

Data from realestate.com.au has revealed the cheapest house sales by capital city across the nation in April, with prices ranging from $220,000 on Russell Island in Queensland to a $618,000 sale in Holt, Canberra.

PropTrack senior economist Paul Ryan said in general, cheaper house listings priced below $500,000 were a rapidly declining price bracket.

“There’s a shrinking amount of stock to purchase in those price brackets,” he said.

“I think one of the things that first homebuyers are acutely aware of is, concessions for stamp duty and things are often capped out at $500,000, depending on the state.

“So that’s another thing that kind of intensifies interest in those properties that do sit below those thresholds.”

However, Mr Ryan said the sales data identified there were still buying opportunities to be had for first homebuyers and investors.

The 7 Glenfield Avenue, Russell Island home sold for $220,000 in April. Picture: Realestate.com.au/sold

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“Yields tend to be a higher on lower priced property, so they can be appealing,” he said.

Competition between first homebuyers and investors for similar properties had been quite common over the past couple of years, Mr Ryan said.

“Investors have come back into the market and first-time buyers have kind of receded, so that tells you what’s happening at this end of the market,” he said.

“We’ve seen first homebuyer numbers decrease over the past two years, with higher interest rates in particular constraining first homebuyers because they are borrowing as much as they possibly can to get into the market in general.”

The cheapest house sale in Australia

Advertised as a “diamond in the rough,” the two-bedroom 7 Glenfield Avenue property, located off Brisbane on Russell Island, warned potential buyers there were many major improvements needed to make it shine

“I did get a lot of interest in it. It was an owner builder who never quite did what he had to do,” sales agent Chris McGregor from Bay Islands Property – Russell Island said.

Set on a 546sqm block, the home’s classic original Queenslander features included French doors, double windows, solid timber floors, high ceilings and a sleep out.

Snapped up for $220,000, Mr McGregor said the new owners have plans to renovate and eventually live in the home.

Sydney’s cheapest house sale in April was the home at 12 Kenny Street, Mount Victoria for $530,000. Picture: Realestate.com.au/sold

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More cheap sales of the month

The humble three-bedroom abode at 53 Willison Road, Elizabeth South in Adelaide’s north was the city’s cheapest house sale at $370,000.

With a listing describing the modest property as “offering an affordable entry into a high-demand area with noteworthy investment potential,” it received seven offers.

Sales agent Mustafa Razaee from Ray White – Prospect said six to 12 months ago he would have been lucky to sell the 1950s built home, with no back or front yard, for $300,000.

“Anything less than $400,000, there’s some massive demand and we had 18 groups come through the first weekend,” he said.

In Canberra, 12 De Mestre Place, Holt was the capital city’s cheapest house sale at $618,000.

“The interest was fairly good,” sales agent Nic Salter-Harding from LJ Hooker Dickson said.

The three-bedroom house at 53 Willison Road, Elizabeth South in Adelaide’s north sold for $370,000. Picture: Realestate.com.au/sold

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“It was in a strange segment of the market because it was a separate titled property on its own block of land but the house size and its setup was really much more like a courtyard home or a townhouse.”

In Perth, the cheapest house sale was the 1987-built three-bedroom home at 22/68 Owtram Road in Armadale for $378,000.

In Sydney, the city’s cheapest house sale fetched $530,000 in Mount Victoria, while the three-bedroom house at 19 Sattler Street, Gagebrook in Hobart was snapped up for $385,000.

Darwin’s cheapest home to sell was a $395,000 sale of a three-bedroom, one-bathroom home located in Gray.

Perth’s cheapest house sale in April was at 22/68 Owtram Road in Armadale for $378,000. Picture: Realestate.com.au/sold

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Units snapped up for as little as $175,000

Australia’s cheapest unit sale in April was 140/21-23 Cavenagh Street, Darwin City for $175,000, where it was all about location with a convenient position in the heart of the city.

In Melbourne, a second floor, one-bedroom studio apartment at 15/30 Pickett Street, Footscray, was the lowest priced unit sale at $210,000.

Rounding out the list was a $277,000 sale of a one-bedroom unit in Carramar in Sydney, a $230,000 unit sale in Perth’s Osborne Park, and a $215,000 unit sale in West End, Brisbane.

The one-bedroom unit at 140/21-23 Cavenagh Street, Darwin City sold for $175,000, marking Australia’s cheapest unit sale in April. Picture: Realestate.com.au

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Mr Ryan said the reasons investors, and to a lesser extent first homebuyers, liked to purchase units was because they were low maintenance. However, the cheaper asking prices meant buyers were trading off location for size.

For first homebuyers in such a position, Mr Ryan said it was important to recognise that location, size and price were likely going to have to be compromised.

“The first step of the housing ladder is not the last step on the housing ladder,” he said.