Units Compete with Houses

Over the past 12 months, in some parts of Australia, units have outstripped houses. According to data recently released by rpdata.com, in Sydney, Brisbane, Perth and Darwin, the growth in value of units has outperformed houses.

Overall on a national basis, rpdata.com says that this performance is matched if you look at the past five years, with the recorded annual value growth for units sitting at 7.4 per cent, compared to 7.1 for houses.

However, you must take into account that if we look at this over a longer period, say 10 years, houses are still a better bet. Data reveals that the recorded annual value growth for the past decade for houses is 9.9 per cent and only 8 per cent for units.

Most commentators believe that this new phenomenon is due to housing affordability and people now having to consider units over houses to secure a home.

Also, another possible attraction to units is that many new developments are strategically located and offer great facilities close to amenities.

It has also been revealed that of all the capital city markets, Hobart offers the most affordable units (median price $254,250) and Sydney the most expensive, with a median of $450,000.