The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
25 DAYS UNTIL OUR UNMISSABLE FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
25 DAYS UNTIL OUR FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
SECURE YOUR SPOTDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
7
print
Print
ResidentialRenee McKeownThu 02 Dec 21

House and Unit Price Gap Reaches Record Levels

3e662f32-81ae-4372-87ce-1b63c0025141

The difference between house and apartment prices is the widest on record as the argument for increased density grows stronger.

Capital city houses were 37.9 per cent, or $240,500, more expensive than units, according to Corelogic.

Sydney’s gap was the nation’s widest with houses $523,000 more expensive than apartments.

House values continued to outpace that of units in November with houses up 1.2 per cent and apartments at 0.7 per cent.

Although this continued October’s trend of a slimmer gap, the threat of Covid-varient Omicron stalling the resumption of international migration could stifle apartment price growth in Sydney and Melbourne.

But border closures aside, apartment prices have picked up markedly in the past few months as affordability constrains low-density housing.

Capital city apartment prices have increased 12.6 per cent in the past year, the strongest annual growth in 11 years, while houses have increased at the fastest pace in more than three decades, up 24.3 per cent.

Apartment and house prices in Australia

LocationHouse PricesMonthly ChangeUnit Prices Monthly Change
Sydney$1,360,5431.0%$837,1690.7%
Melbourne$986,9920.6%$626,4490.5%
Brisbane$757,1943.2%$443,9811.1%
Adelaide$608,6242.6%$380,0581.4%
Perth$552,1580.2%$400,8310.1%
Hobart$726,7791.2%$558,4550.6%
Darwin$562,900-0.5%$368,635-0.2%
Canberra$999,7550.8%$568,3082.1%
National$750,0961.4%$599,0690.9%
Capitals$875,1951.2%$634,8460.7%

^Source: Corelogic, hedonic home index November 2021

Corelogic research director Tim Lawless said rent was also on the rise for units, further boosting the sector.

“With such a large value gap between the broad housing types, it’s no wonder we are seeing demand gradually transition towards higher density housing options simply because they are substantially more affordable than buying a house,” Lawless said.

Australian Bureau of Statistics data showed apartment approvals picked up at the start of the year before slowing down again as the entire market passed its peak.

However, long project lead times and a lack of international migration will hold the complete apartment market rebound off for now.

This year 9732 fewer apartments were expected to be completed than in 2020 and 19,698 fewer than when the market peaked in 2018, according to Urbis.

At this stage the supply for the next three years is forecast to be lower than this year’s.

The exception to this, in the national apartment market report, was in Brisbane and on the Gold Coast, which are being spurred on by domestic migration and the 2032 Olympics.

ResidentialAustraliaBrisbaneMelbournePerthAdelaideCanberrado not useDarwinReal EstateSector
AUTHOR
Renee McKeown
More articles by this author
ADVERTISEMENT
TOP STORIES
Exclusive

Carparking Correlation: How Parking Fees Provide Office Sector Health Check

Taryn Paris
6 Min
Molti chief Ben Teague out front of 32 Mercer Road Aramadale (rendering)
Exclusive

Buy to the Sound of Cannons: Molti’s Counter-Cyclical Move to Melbourne

Leon Della Bosca
5 Min
Exclusive

Tapping the Bunnings ‘Halo Effect’

Taryn Paris
5 Min
Exclusive

‘Construction Not a Scale Game’: Hutchinson

Phil Bartsch
9 Min
Nation's build-to-rent project Charlie Parker in Sydney's Parramatta where more projects are being located and built outside the CBD.
Exclusive

Foreign Capital Still Dominates BtR but Things are Changing

Marisa Wikramanayake
7 Min
View All >
the four concept towers approved for sydney metro's parramatta precinct
Development

Rush of Approvals Sends Parramatta Skywards

Renee McKeown
The construction site which will one day become Newcastle Tallest Tower by Urban Property Group
Residential

Urban Property Group Reveals Newcastle Tallest Tower Plan

Renee McKeown
Exclusive

Carparking Correlation: How Parking Fees Provide Office Sector Health Check

Taryn Paris
The city with Australia’s highest parking rates, and cheapest public transport fares, is also proving our best performin…
LATEST
the four concept towers approved for sydney metro's parramatta precinct
Development

Rush of Approvals Sends Parramatta Skywards

Renee McKeown
2 Min
The construction site which will one day become Newcastle Tallest Tower by Urban Property Group
Residential

Urban Property Group Reveals Newcastle Tallest Tower Plan

Renee McKeown
3 Min
Exclusive

Carparking Correlation: How Parking Fees Provide Office Sector Health Check

Taryn Paris
6 Min
Bunnings Clyde North
Markets

Bunnings Sold On as Charter Hall Doubles Down on Retail

Leon Della Bosca
2 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/house-apartment-price-gap-widens