In Over Half of all Suburbs Apartment Values are Rising Faster than Houses

According to CoreLogic data, the rate of appreciation in unit values has surpassed that of houses in more than half of all suburbs nationwide. This trend reflects a growing preference among buyers for the relatively more affordable options offered by the apartment sector, following years of sluggish growth.

the worsening affordability for houses, tight supply in the high density housing sector and increased demand from first-home buyers and investors could fuel sustained upturn in the sector over the near- to medium-term. House values are reaching an affordability ceiling, which will limit their future rate of growth, while units still have plenty of room for capital gains.

Units outperformed houses in 633 out of 1168 suburbs nationwide, with prices in some apartment markets jumping more than nine times faster than houses in the past three months. Sydney unit values jumped higher than houses in 54 per cent of all suburbs analysed.

Unit values in Clovelly, jumped by 7.9 per cent, more than six times higher than house prices in the suburb, which increased by just 1.4 per cent in the past three months. The median house price sat at $4.4 million compared to units’ $1.8 million, with the $2.6 million gap among the largest in the country.