Login
iscover
While the apartment market has garnered attention for price rises that have, in some instances, outpaced standalone houses this year, the price differential is still substantial in many major markets.
According to research from Nuestar and Hotspotting, the median price of an apartment is less than half of the median house price in some capital markets, with all major cities posting a price difference of at least 20 per cent.
In Sydney, the gap is widest, with the median apartment price sitting $632,000 below the median house price of $1.45 million – a difference of 56 per cent. The ACT has the next largest gap, with a 45 per cent price differential. Perth comes in at 40 per cent, and Darwin at 45 per cent.
In Melbourne the differential sits at 39 per cent, with Brisbane and Adelaide posting similar figures at 36 per cent and 31 per cent respectively. Hobart has the smallest gap between median prices, at 23 per cent.
Hotspotting director Terry Ryder said that with affordability pressures defining 2024, many buyers have reset their expectations to focus on the apartment market, particularly in inner-city locations and popular coastal and lifestyle destinations.
“Even in the most expensive markets, the price difference between a house and an apartment can be substantial,” Ryder said.
Though he noted that increased attention on this segment is already causing price acceleration that will see the affordability gap eroded if the current popularity continues.
“It’s not just that apartments are a more affordable option, which makes the apartment market more enticing for investors as well. There are also a growing number of locations where apartments are outperforming the same suburb’s house market in terms of median price growth, long-term average growth, and average rental yields,” he said.
Michael Wilkins, founder and director of property at Nuestar, noted that while affordability was a major driver of the increased interest, higher amenities and greater variety in the market were also proving popular to cohorts, such as downsizers, who were not basing their next property move on interest rate factors.
“In terms of a secure, lockup-and-leave lifestyle, it is hard to beat apartment living.
“The emergence of larger, more luxurious apartments over the past decade also means they are now a viable alternative for downsizers who want to leave behind the maintenance of a house in the suburbs for something that still comfortably accommodates them and their possessions,” Wilkins said.
You are not authorised to post comments.
Comments will undergo moderation before they get published.