- Kiwis moving to Australia may find affordable homes in Sydney's outer suburbs but face long commutes.

- Gunderman and Gosford offer median prices around A$300,000, but with a 1.5-hour rail commute.

- Perth and Adelaide are more affordable cities, with rising prices but better entry points than Sydney.

As Kiwis flee New Zealand’s sluggish economy to seek greener pastures in Australia, data shows if they’re moving from our regions, they may not be much better off unless they’re prepared to compromise.

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Ray White has crunched the numbers on the most affordable suburbs in greater Sydney and the data shows the odds are stacked against Kiwis looking for an affordable home within a short commute of Sydney’s central business district (CBD). But, if buyers are prepared to downsize and commute, or they can find work in the outer suburbs they might do well.

New Zealand buyers looking to spend less than A$1m had the best chance in Gunderman, Gosford, where the median sale price is just A$300,000.

While the price might be enticing it comes with a rail commute of around 1.5 hours to Sydney’s CBD and a substantial downsize. Other more affordable suburbs within greater Sydney include Tregear, Bidwill, and Blackett in Mount Druitt, with median prices around A$660,000.

Ray White senior data analyst Atom Go Tian says Sydney’s outer suburbs, while more affordable, can feel remote when considering traveling time to the Sydney’s CBD and often the more affordable homes in those areas were also smaller.

“Buyers seeking that affordability will need to weigh up the significant commute times and often smaller living spaces that come with lower-cost living,” says Atom.

He says Sydney’s outer suburbs are continually developing with new infrastructure projects and business hubs which meant some residents could live work and play in the suburbs, but for others the trade-off in lifestyle and commuting hours is substantial.

For those unwilling to endure such lengthy commutes, Blacktown was the best bet with a 53-minute train ride to Sydney’s CBD. 65% of its properties listed under A$1m and a median sale price of A$785,000.

The suburb with the highest share of affordable homes closest to Sydney’s CBD was Woodpark, in Merrylands, with 79% of homes below $1m and a median sale price of A$900,000. The suburb is a just 10-minute drive to a high-speed rail line into the central city.

Ray White’s analysis found 31 suburbs of Sydney where there was no house with a value of less than $1m. The suburb with the highest median sale price was Longueville, on the city's North Shore, where buyers would likely need A$6.38m in their back pocket.

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“Kiwis from New Zealand’s pricier markets like Auckland may find Sydney comparable or even slightly more affordable, but for Kiwis from regional areas looking to buy property, the advantages may not be as great.”

Cities like Perth and Adelaide provided a much more affordable entry point for buyers than many areas in Sydney, but there is a sense of urgency as prices in those cities are rising quickly, Atom says.

Perth saw a 23% house price growth last year, while Adelaide and Brisbane rose by 13% and 12%, respectively, outpacing Sydney’s 6%.

However, even in Australia’s most affordable cities or Sydney’s outer suburbs Kiwis might not be that much better off as New Zealand’s housing prices often hit a similar price bracket as Australia’s mid-range areas.

Bondi Beach, in Sydney. The suburb is a popular destination for visitors, but those wishing to relocate there should think about their budget. Photo / Getty Images

Gearing up for a house auction in Sydney's inner-city suburbs. Prices in the city have risen sharply in the last five years. Photo / Getty Images

Bondi Beach, in Sydney. The suburb is a popular destination for visitors, but those wishing to relocate there should think about their budget. Photo / Getty Images

Houses in Perth, in Western Australia, could be a more affordable option for Kiwis. Photo / Getty Images

“Auckland prices are around NZ$1.1 million, but Canterbury is around $700,000 so Kiwis from places like Auckland may find better value, but those from other regions may see less of a difference,” says Atom.

For renters, Australia was slightly more favourable with a rent-to-income ratio of 35% compared to New Zealand’s 40%, and with Australia’s current interest rates still lower than New Zealand’s, Kiwis may find the Australian market more manageable, says Atom.

If Kiwis are dreaming of places like Bondi Beach, however, they will need to come with big budgets. 99% of the homes in the famous beach suburb are worth more A$1m, with the median sale price A$1.53m. Neighbouring Bondi Junction, thought to be more affordable, is still expensive, with a median sale price of A$1.47m. Only 1% of homes there have a value of less than $1m.

So, is the grass greener in Australia for Kiwis? The answer depends on what you’re willing to compromise on.

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