Curated for the Inquisitive Mind

Real Estate

a shift in market dynamics this 2024

Over the last four years, the gap between house and unit prices in Australia has widened to record levels.

Historically, houses have commanded higher prices than units.

However, since the pandemic began, this disparity has grown significantly, with house prices surging by 44.2% compared to pre-pandemic levels, while units have seen a more modest increase of 21.7%.

By March 2024, four years after the pandemic’s onset, the median house price premium ballooned from 8.4% to an astonishing 32%, according to PropTrack.

In Sydney, this gap is even more pronounced, with houses costing nearly twice as much as units—a stark $710,000 difference.

Why this growing disparity?

According to PropTrack’s Senior Economist, Eleanor Creagh, the pandemic reshaped housing preferences.

“More Australians now prioritize larger living spaces and home offices over proximity to central business districts. This shift, coupled with historically low interest rates, has allowed people to take on larger mortgages, further driving up house prices”, she said.

Despite houses consistently outperforming units in 83 of 88 SA4 regions nationally, the unprecedented house price premium has boosted unit market attractiveness in 2024.

Ms Creagh said they’ve observed units showing stronger price growth early this year, up 2.00% compared to houses at 1.48%.

Cities like Melbourne and Brisbane are noteworthy, where unit price growth has outpaced that of houses over the past year.

This trend suggests a shift towards more budget-friendly housing options due to worsening affordability.

Capital city insights

In every capital city, except Canberra and Darwin, unit prices are growing faster than house prices.


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