A new analysis by CoreLogic RP Data has found a bigger price gap between houses and units in the country’s capital cities in December 2014 – the largest gap ever recorded by the research group.
The capital city median house price was almost higher by 20% when compared to the city median unit price – making median house values $100,000 more expensive than unit prices.
The widest gap was found in Sydney where houses were selling for more than $243,000, on average, than units. Canberra follows with a recorded average price difference of $172,000.
Melbourne, with an average price difference of $170,000, was third on the list. Darwin recorded the smallest price gap with houses only selling for $32,000 more, on average, than units.
“In particular, there is a large volume of new unit stock being constructed in Sydney, Melbourne and Brisbane. Growing demand for unit stock, both from investors and owner occupiers and the sheer affordability difference between house and unit prices at least partly explains this growing level of demand,” research director Tim Lawless said.
“… demand has increased for higher density housing stock but the level of apartment development currently taking place is unprecedented. It’s important to remember that units have typically been the domain of investors rather than owner occupiers.”
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