Across the country there is generally a wide gap between the price of house and a unit, a factor that is likely to become increasingly attractive to first home buyers and other budget conscious property buyers.
Housing affordability remains a topical issue across most housing markets around Australia and many prospective home buyers are looking to minimise their debt by either purchasing a house in the outer fringes of the city or choosing an apartment located closer to the city. Both options have their pros and cons, however units are becoming an increasingly popular option, particularly amongst younger market segments like Gen Y’s and DINKS who like to live close to where they work and play.
Across the other large capital cities (Melbourne, Brisbane, Perth and Adelaide) the price gap between the median house and unit price is much less at around 18%. In dollar value terms that still represents a sizeable price gap; generally around a $70,000 difference and slightly more than $60,000 in Adelaide.
Going forward we are likely to see apartments continue to garner a larger share of the market.
Twenty years ago apartments comprised only about 25% of all sales. More recently the proportion of apartment sales peaked at 36% in mid 2009. The fall away since that time is most likely attributable to both a slow down in investor and first home buyer purchases as well as ‘off the plan’ sales yet to settle which do not appear in the figures.
Extract From RP Data Premium Property Pulse
Currently in Brisbane, apartment sales are 27% of all sales.