Can you still buy a house for less than half a million?

“Because it’s a small development, it’s an attractive price. For most families, this was the driving force behind most inquiries. All homeowners,” Teal said.

More than 40 groups, almost all locals, inspected the property which was due to go under the hammer on Saturday.

In Brisbane, many first-time home buyers, as well as some investors, have been drawn to a flood-hit three-bedroom house at 58 Goburra Street, Rocklea despite the damage.

Located about 11 kilometers southwest of Brisbane, the house was hit by flooding in February this year and the owners want to move on.

While price guides are banned in Queensland, sales agent Kenneth Mow of Jensen Property said the asking price was under $500,000.

“It’s good value for money. Ideal for first-time home buyers trying to enter the market, as well as investors looking to earn a good rental yield,” Mow said.

He said that although there is no structural damage, new gypsum walls are needed and most buyers are willing to do this and build higher rather than knock down.

Mow said that despite the damage, buyers were interested because it was “very rare” and “almost impossible” to find a house on 594 square meters at such a low price.

In Canberra, there are almost no houses available below $500,000. Instead, one of the cheapest homes on the market is a two-bedroom townhouse at 8 Gubbo Street, Bonner.

The home, which spans 194 square meters, is accepting bids over $595,000, attracting a lot of interest from first-time home buyers and some investors.

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Sales agent Jonathan Irwin, of Irwin Property, said 15 groups of buyers inspected the property on the first day, triggering five offers for the open house.

“It attracted a lot of people who don’t want strata [fees]who want their own yard and have missed out on properties that have bought more,” Irwin said.

“My finding is that first-time buyers are the least discouraged by rising interest rates because, what is the alternative, continue to rent?”