Despite rising property prices and a trend towards smaller lots, the Australian dream of an affordable freestanding house on a quarter-acre block is not dead – but you might have to look further afield to find it.

The latest data from PropTrack shows that buyers seeking an affordable property with a land size of about a quarter of an acre in one of the capitals will have the most luck looking at the urban fringe.

An analysis of sales data shows that there are plenty of suburbs where a quarter-acre is the typical block size, but the cheapest of these suburbs — most with median house prices under $1 million — are on the outskirts of the capitals.

That’s partly because a quarter-acre block, which equates to just over 1000 square metres, is huge by today’s standards, meaning city buyers are unlikely to find one for cheap anywhere near the CBD.

A quarter-acre is more than double the 432sqm average block size for new homes – a figure that has shrunk over the past decade, according to the ABS, despite Australians building ever larger homes.

Block sizes are getting smaller while new homes are getting larger, but the Australian dream of a freestanding house on a quarter-acre block isn't dead yet. Picture: Getty

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With the nation facing a housing shortage, high demand for homes means large lots closer to city centres can sell for millions, given the potential for well-located land to be subdivided and developed.

As big properties are carved up to create smaller lots, the quarter-acre block has become ever more scarce, meaning buyers chasing the suburban dream will likely need to look well beyond suburbia itself.

PropTrack senior economist Eleanor Creagh said high property prices and the scarcity of large blocks close to the capitals meant buyers would need to focus on the outer suburbs to find an affordable quarter-acre block.

“Larger lots in desirable inner city locales are scarce and tend to be tightly held, resulting in high competition and significantly higher values,” she said.

“Cheaper houses with larger lots tend to be in the outer suburbs of our capital cities further away from the city centres.”

Top 5 cheapest suburbs for quarter-acre blocks in each capital

Sydney buyers will be most likely to find a 1000sqm property for less than $1 million in the Blue Mountains – a region more than 50km west of the CBD but still part of Greater Sydney.

Suburbs like Faulconbridge, Woodford and Bullaburra have quarter-acre properties on offer for about $800,000 to $900,000, sales data shows.

The Blue Mountains is one of few areas in the greater Sydney region where a quarter-acre block can be purchased for less than $1 million. Picture: realestate.com.au/sold

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Local real estate agent Helen Harris of Chapman Real Estate said the connection to nature was what attracted most buyers towards large properties in the area.

“There’s always been a big demand for a nice-sized block, and typically the biggest drawcard that brings people up to the mountains is having the bush outlook or backing onto bush,” she said.

Many buyers seeking properties in the Blue Mountains sought out bush outlooks, according to local real estate agent Helen Harrris. Picture: realestate.com.au/sold

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Most buyers in the area were families, she said, but affordable prices as well as hybrid working, transport improvements and a village vibe had coaxed more young couples to move from the inner city.

“First-home buyers are coming out in droves because they want the lifestyle,” she said.

This Faulconbridge house on more than a quarter-acre of land sold late last year for a little over $1.1 million. Picture: realestate.com.au/sold

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Melbourne buyers seeking an affordable quarter-acre block could search in Yarra Junction and Warburton in the Yarra Valley, where median prices range from about $600,000 to $700,000.

In Perth, the most affordable 1000sqm-plus properties are found in outer west suburbs like Mount Richon, Walliston and Chidlow, or in the Mandurah region in Furnissdale or North Yunderup.

Brisbane buyers would need to look between an hour and 90 minutes from the CBD to find the cheapest quarter-acre blocks, which sales results show are found on the very edge of the Greater Brisbane region in Forest Hill, Esk and Toogoolawah. 

But with median prices around the $500,000 mark, these areas are also among the most affordable places to buy a quarter-acre block in any greater capital city area.

It may be more than an hour from the Brisbane CBD, but this Forest Hill house that sold for $445,500 was one of the cheapest quarter-acre blocks within cooee of a capital to sell in the past year. Picture: realestate.com.au/sold

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There’s one capital where buyers won’t have to venture too far out from the city centre to find a quarter-acre block.

Canberra’s smaller geographical area and typically larger lot sizes mean there are more options for quarter-acre blocks that aren’t on the city’s outskirts.

Fraser in the city’s northwest has a typical block size above 1000sqm, but median prices below $1 million. A typical quarter-acre property in Torrens in the south costs $1.05 million, while Chapman’s median price is $1.31 million. 

In Turner, a typical quarter-acre block is worth just under $1.7 million, as a result of its position less than 2km from Canberra’s CBD.

The dream of owning a quarter-acre block is a reality in many suburbs of Canberra, where it's common to find 1000sqm-plus blocks like this Torrens that's home going to auction. Picture: realestate.com.au/buy

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Canberra real estate agent Jonny Warren said the city had some of the largest blocks of all the capitals.

"But in the newer suburbs, that’s changing, so there's a lot of demand in older suburbs for larger blocks," he said.

"Growing families want big blocks to have space for the kids to kick a soccer ball, have people over for get-togethers, or potentially, buy that smaller home on a bigger block to knock down and rebuild."

Despite larger properties having the potential for subdivision, Mr Warren said quarter-acre blocks would remain sought-after among families as more older homeowners downsized.

"I think there is going to be a lot more hitting the market, and greater demand from growing families looking for more space."