Units could soon become more attractive to investors as the discrepancy between median unit and house prices across Australia continues to rise.
Data released by CoreLogic RP Data shows that over recent times, the growth for houses has been outpacing units and the differential, especially in some the country’s most expensive suburbs can be significant.
The biggest difference can be seen in the Sydney suburb of Centennial Park where the median house value ($5,105,639) is 752% higher than the median unit price ($599,168).
Five other Sydney suburbs, Lavender Bay, Vaucluse, Bellevue Hill, Cremorne Point and Dover Heights, have median house prices that are at least 300% higher than the median unit price.
’s Peppermint Grove
has the second highest difference in the country after Centennial Park, with median house prices ($3,191,278) coming in 448% higher than median unit prices ($581,986).
Victoria has two suburbs, Toorak and Deepdene, with a difference of 300% or more, while South Australia has on in Unley Park.
The ACT’s biggest discrepancies are seen in the suburbs of Forrest (237%) and Campbell (226%) while Ascot
(216%) and Surfers Paradise
(205%) are home to the biggest differences in Queensland.
Tasmania and the Northern Territory are the only two locations where differentials don’t reach 200%.
In the NT differentials are biggest in the Darwin
suburbs of Larrakeya (162%) and Brinkin (122%), while Hobart’s Mount Nelson (104%) is the only Tasmanian location where differentials reach 100%.
CoreLogic RP Data senior researcher Cameron Kusher said that the research showed that the majority of units are owned by investors.
“Sure, units don’t always come with the same appeal as a house for many households but more and more buyers are realising they are a viable alternative,” Kusher said.
“Although Australians still tend to prefer detached houses, units allow people to live in the areas that they want, however, the cost of ownership is typically significantly lower for a unit."
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