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Over 60 per cent of apartment markets nationwide have seen median price growth outpacing or matching that of houses over the last 12 months, with units in Brisbane leading the charge.
New research by Nuestar and Hotspotting showed that in the 12 months to May 2025, 62.9 per cent of apartment markets across the country recorded an equal or higher median price growth than houses.
Nuestar founder and director of property, Michael Wilkins, said the data showed a shift in the Australian property market, challenging the longstanding real estate belief that houses are better value than units.
“The common view is that the real money is in land, not apartments. However, that’s not our experience,” Wilkins said.
“With lifestyle benefits, lower costs, and outstanding locations, apartments are fast becoming the preferred choice for both home owners and investors.
“Prices per square metre are continuing to rise, and developers are recognising that quality design, premium inclusions, and integrated amenity are increasingly the key to market appeal.”
Across the country, the Brisbane apartment market led the charge with 76.3 per cent of its units recording a higher growth than houses over the year.
Perth followed suit with 75 per cent of its unit market outpacing or matching house price growth, primarily driven by affordability.
“While the Perth apartment market is smaller, rising house prices mean even more buyers are turning to its more affordable apartment market, with 75 per cent recording higher apartment price growth than house price growth in the past 12 months,” Wilkins said.
Similarly, the data showed that 71.4 per cent of the Sydney’s apartment market surpassed house growth over the last 12 months.
“We continue to deliver strong results in apartment projects in locations grounded in solid fundamentals: population growth, employment hubs, infrastructure, and transport.”
He said that the unit market continues to grow nationwide and offers good investment opportunities.
“We’ve also seen excellent performance in areas undergoing demographic change and regeneration,” Wilkins said.
He said that Como in Perth was a good example of units doing well, with the median apartment price rising 27 per cent in the past year versus 21 per cent for houses.
“A Perth project in Como is typical of what works in today’s market. Its key fundamentals are river frontage, views, public transport and easy access to the CBD, surrounded by older homes with new architectural rebuilds happening,” Wilkins said.
Hotspotting director, Terry Ryder, said the demand for units had been increasing all around the country with sales reaching 154,928 in the past year, driven by lifestyle preferences, affordability challenges, and investment opportunities.
“Brisbane’s inner-city market, in particular, is benefiting from major infrastructure projects and the upcoming 2032 Olympics, which is further fuelling growth,” Ryder said.
He said unit prices will continue to grow exponentially and outpace houses in key locations as the country’s vacancy rates remain tight while rental demand surges.
“The once dominant paradigm of real estate – that houses on land showed superior capital growth to apartments – is simply no longer the case,” Ryder concluded.
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