Six Locations for New In-Fill Houses Under $850,000 Revealed

With quality established housing stock dwindling across the country, homebuyers and investors are turning to vacant in-fill land to construct new properties to take advantage of the many benefits that come with building from scratch.

National buyers’ agency Adviseable has revealed six locations where new homes can still be built for under $850,000, offering buyers an alternative to the often-competitive market for established properties.

Adviseable Property Buyer Kate Hill says this strategy is gaining traction as buyers recognise that waiting for a suitable existing home can often take as long as building a new one.

“With the shortage of quality listings in many areas, constructing a property is becoming a viable option for buyers who don’t want to wait indefinitely for the right house to hit the market,” Ms Hill said.

Beyond availability, there are significant financial and practical benefits to new builds, particularly for investors, she said.

“New properties offer better tax deductions, lower maintenance costs, greater appeal to tenants and buyers, and the advantage of builders’ warranties for peace of mind,” she said.

“Plus, tax depreciation benefits on brand-new homes are substantially higher than on older properties.”

First-home buyers also stand to benefit, with potential stamp duty savings and government incentives such as the First Home Owner Grant (FHOG), helping to ease the financial burden of saving for a deposit, she said.

Ms Hill said another myth about this strategy is prohibitive holding costs during construction given there is no rental income.

“Stamp duty savings negate the loss of rental income during construction,” she said.

“Say, we build a new property in Queensland for $1.1 million with an interest bill on the land and construction loans equating to about $27,00 over the 30-week purchase/construction timeframe.

“The savings in stamp duty for building new versus buying an equally priced established property equals about $25,000, so, there is not much difference between the two scenarios at this point, with the stamp duty savings mostly cancelling out the loss of rental income during the period.”

Another common misconception is that new builds are prohibitively expensive – but Ms Hill said many property buyers and investors are often surprised to find they can secure vacant land and build a brand-new home for a similar price to the median house price in their chosen suburb.

Building in well-established suburbs also eliminates uncertainty over hidden defects, she said.

“Existing properties come with a patchwork of materials, fixtures, and appliances, all at different stages of their lifespan. Over the years, I’ve seen plenty of building and pest inspection reports reveal shocking surprises lurking beneath the surface of older homes,” Ms Hill said.

“Building from the ground up provides control. Everything is brand new, covered by warranties, and built to last.

“With market conditions increasingly favouring new construction over waiting for that elusive existing hidden housing gem, the ability to construct a tailored, modern home at a competitive price is becoming more of an enticing prospect for homebuyers and investors alike.”

Six locations for new in-fill houses under $850,000

Ballarat, Victoria

Ms Hill said Ballarat presents a compelling case for both homebuyers and investors, thanks to its strong economy, significant infrastructure projects, and affordability.

“It offers a cost-effective alternative to Melbourne while still benefiting from its proximity, thanks to the upgraded fast train service,” she said.

“The city boasts a diverse economy beyond its historic mining roots, including manufacturing, agriculture, and technology hubs.

“Population growth is steady, rental vacancies are low, and land values have surged.”

Major projects like education and healthcare expansions, and wind farms further enhance its investment appeal, ensuring long-term capital growth potential, she said.

Geelong, Victoria

Ms Hill said Geelong has emerged as a top-performing regional property market, attracting buyers and investors with its booming economy, major infrastructure projects, and affordable housing.

“The city’s population is forecast to reach 500,000 by 2047, supported by diverse employment opportunities across multiple industries,” she said.

“Geelong also provides a more accessible entry point compared to Melbourne. Ultra- low vacancy rates ensure strong rental demand, while its proximity to Melbourne enhances long-term appeal.”

Large-scale urban expansion plans, including new residential precincts and employment hubs, reinforce Geelong’s status as a high-growth investment location, she said.

Moreton Bay, Queensland

Ms Hill said Moreton Bay, a designated growth area in Greater Brisbane, presents strong opportunities for homebuyers and investors.

“Affordability remains a key draw. Major infrastructure projects – such as the new university in Petrie, Caboolture Hospital redevelopment, and Caboolture West growth precinct – enhance long-term investment potential,” she said.

“The region is set to accommodate rapid population growth, reaching 500,000 in two decades, supported by planned transport networks, business hubs, and new schools.

“Its diverse housing options, extensive green spaces, and strong government- backed development ensure sustained demand, making Moreton Bay a promising investment location for homebuyers and investors.”

Northern Adelaide, South Australia

Ms Hill said Northern Adelaide stands out as a thriving property hotspot, driven by robust infrastructure projects and economic growth.

“For example, the City of Salisbury benefits from major industrial developments, including the $1.9 billion Edinburgh Parks Precinct, alongside strong employment opportunities in defence, logistics, and food manufacturing,” she said.

“Meanwhile, Playford is South Australia’s fastest-growing LGA, offering affordable housing, exceptional rental yields, and large-scale urban regeneration.

“Government-backed projects, such as the $250 million Playford Alive Town Centre redevelopment and multiple transport upgrades, enhance long-term investment appeal.”

With low vacancy rates and rising home values, Northern Adelaide presents a compelling opportunity for both homebuyers and investors, she said.

Northern Perth, Western Australia

Ms Hill said the northern reaches of Perth offer a strong investment opportunity with affordable property prices, major infrastructure developments, and a growing population.

“Homebuyers can access coastal living alongside excellent amenities, including schools, medical facilities, and transport links,” she said.

“Investors benefit from low rental vacancy rates, steady population growth, and significant government-backed projects, such as the Metronet rail extension and large-scale residential developments.

“Key suburbs like Alkimos, Yanchep, and Two Rocks are fast-growing, ensuring continued demand. This region is poised for long-term capital appreciation and solid rental yields.”

Toowoomba, Queensland

Ms Hill said Toowoomba’s property market is thriving, offering homebuyers and investors a stable and affordable alternative to Brisbane.

“Key infrastructure projects – such as the Toowoomba Wellcamp Airport and Toowoomba Bypass – enhance connectivity and attract new residents,” she said.

“The city boasts a diverse economy, low unemployment, and strong demand from first-home buyers, retirees, and tree-changers.

“With a history of steady capital growth and resilient market conditions, Toowoomba continues to stand out as a promising location for long-term investment and solid rental returns.”