The Property Council of Australia is warning of a chronic looming shortage in Australia’s unit market. The latest Australian Bureau of Statistics building approvals data shows in July, 4490 units were approved for construction. This is 20% less than in the previous month and about 40% below the decade average. In the past decade, units accounted for about 41.7% of completions although this dropped to 37.1% in the March quarter.
Nationally the capital city's median unit price is about 30% cheaper than that of houses, making them a more affordable option for buyers, although supply remains tight. While many unit developments are proposed, high construction and labour costs mean many are being delayed. According to the latest CoreLogic Hedonic Index, Sydney has the highest median unit value of $828,900. Next is Melbourne, $612,590, followed by Canberra, $591,950 and Brisbane, $529,160. Adelaide has a median unit value of $464,400, Perth $437,880, Hobart, $520,460 and Darwin, $382,100.