Apartment price growth outpacing house markets across Australia

Village News

New Farm

A fresh analysis of Australia’s capital city property markets is challenging the long-standing belief that houses always outperform apartments. Research by Nuestar and Hotspotting, covering the 12 months to May 2025, found that 62.9% of apartment markets recorded equal or stronger median price growth than houses. According to Nuestar Founder Michael Wilkins, buyers are increasingly drawn to apartments for their lifestyle appeal, affordability, and premium locations. “The idea that land always holds the value is being redefined,” he said. “Apartments with great design and integrated amenities are now in high demand.”

Brisbane leads the trend, with 76.3% of apartment markets outpacing houses, followed by Perth (75%) and Sydney (71.4%). Rising house prices and changing buyer preferences are driving demand for more affordable and well-located apartments. Wilkins noted strong performance in projects near employment hubs, infrastructure, and regeneration areas. Developers are responding by focusing on quality and amenity to meet growing expectations.

Hotspotting Director Terry Ryder confirmed the shift is happening nationwide, with 154,928 apartment sales recorded over the past year. He expects continued momentum through 2025, especially in areas like Brisbane’s inner city, which is benefiting from major projects ahead of the 2032 Olympics. “The old rule that houses always deliver better capital growth no longer applies,” Ryder said. “Apartments are setting the pace.”