House and Unit Gap Widens
The price gap between houses and units has widened even further with analysis by CoreLogic showing the difference is 45% higher than it was at the start of the pandemic.
Research director Tim Lawless says rising land values and a scarcity of houses listed for sale, means prices are being driven up by demand in the house market.
As a result, he predicts demand for units will continue to rise in the coming years.
“The house premium rose sharply through the pandemic upswing as more people sought out space and were more willing and able to live further afield in our cities,” he says.
“While we saw the premium contract through the early part of the rate hiking cycle as house values fell more than unit values, across the combined capitals the gap between house and unit values has since rebounded to a new record high as house values once again rise at a faster pace than units.”
The biggest gap was in Sydney (68.4%), Canberra (65%), Adelaide (58.1%), Brisbane (56.3%), Darwin (55.4%), Melbourne (55%), Perth, (49.1%) and Hobart (29.3%).
