Powered by MOMENTUM MEDIA
subscribe to our newsletter

Three cities set real estate records

The gap in prices between houses and units has never been greater in three of Australia's capital cities, while that gap is almost non-existent in a fourth capital.

According to a report by CoreLogic RP Data, Canberra had the largest gap between median unit and median house prices in December 2014, at 70.1 per cent.

The median unit price for Sydney was 71.7 per cent of its house price, while Melbourne was 74.2 per cent and Hobart was 77.1 per cent.

Brisbane’s median unit price was 79.3 per cent of its house price. While Adelaide and Perth were 79.6 per cent and 80.0 per cent respectively.

The median price of units and houses in Darwin was almost identical, at 94 per cent.

Advertisement
Advertisement

CoreLogic RP Data research director Tim Lawless said the percentage difference between house and unit prices has never been greater in Canberra, Sydney and Melbourne, while the differences in Brisbane and Perth were at near record highs.

“This certainly goes some way in explaining why we are seeing record-high dwelling commencements for units,” he said.

“Growing demand for unit stock, both from investors and owner-occupiers, and the sheer affordability difference between house and unit prices, at least partly explain this growing level of demand.”

Mr Lawless said the challenge will be to ensure that over-development doesn’t occur.

“Demand has increased for higher-density housing stock, but the level of apartment development currently taking place is unprecedented,” he said.

PROMOTED CONTENT


“It’s important to remember that units have typically been the domain of investors rather than owner-occupiers,” he added.

Three cities set real estate records
mortgagebusiness

Latest News

Home loan commitments have soared across Australia and were above year-ago levels in all states and territories despite COVID-19, a new repo...

CBA’s investment fintech, x15ventures, has hired its first non-executive, independent chairman and a new portfolio adviser. ...

The major bank has announced that its group general manager internal audit, Shane Buggle, will take on the role of acting chief financial of...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: Turnaround time blowouts

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.