The suburbs where apartments are outperforming houses
This time has come for apartments to reign over houses.
It feels like for the last decade, houses have been the ones growing exponentially (that's because they have) - while apartments, while still seeing solid growth, have been playing second fiddle.
The latest data however out of property data house CoreLogic shows apartment values rose faster than houses in more than half of a pool of suburbs across the country in the past three months, as stretched affordability and lower borrowing capacity forced buyers to opt for high-density homes.
Rising rents are also expected to lure more investors to the unit market and help fuel further price gains this year.
Of the 899 suburbs analysed, units outperformed houses across 489 markets in the last three months.
Compared to a 12 month analysis, only 180 of the same 899 suburbs saw apartments outperform houses.
"This suggests it is a more recent phenomenon where unit values would out-perform houses," CoreLogic advised.
"It is also in line with the nature of downturns historically, where houses tend to have more volatility, and deeper declines than what we may see in the unit segment."
Across the capital cities, growth rates have generally been stronger in unit markets further from the CBD.
Sydney's Newtown was one of 20 Greater Sydney suburbs which saw the unit market outstrip houses. Among others were Darlinghurst, Darlington and Zetland near the CBD, and Caringbah South and Woolooware in the Sutherland Shire area.
In Woolooware, unit values are two and a half times cheaper than houses. Units rose 4.9 per cent over the last three months to a median $1.036 million, while the 2.5 per cent house price declines took the median house price to $2.7 million.
Sydney-wide, the median house price is now 70 per cent more expensive than units.
Melbourne's Kensington saw the biggest difference in the house and unit market, with units rising 7.2 per cent and houses remaining flat.
Port Melbourne and Balaclava also saw big swings in favour of the unit market.
Melbourne's houses are 59 per cent more expensive than units - a drop from 61 per cent earlier this year, while the ACT showed a slight drop with house prices 73 per cent higher compared to units - down one per cent from last year.
Looking ahead, the increased overseas migration, and the relative affordability of units compared to houses, as well as the recent upswing in new investor financing seen in February and March, will likely help insulate the apartment sector.
The biggest differences in Sydney markets
The biggest differences in Melbourne markets
The biggest differences in Brisbane markets
