The gap between the values of houses and apartments in Australia is growing as the pandemic continues to influence our real estate market.
Having pushed the nation's average price growth above 20% in 2021, pandemic-era buyers continue to show a preference for houses over apartments.
Industry researcher CoreLogic reports the price disparity between residential property and units was at an all-time high of 28.3% earlier this year.
Supply is playing a role in this, according to CoreLogic. You'll find many more units than houses advertised on the major real estate websites.
Investors who hold units and recognise the importance of capital growth to their portfolio are still receiving great returns and the strength of the market continues to make both houses and units a great investment. Here's why:
With three capital cities now recording $1 million-plus median house prices, affordability issues will become more acute. This makes buying an apartment a great option as while more affordable, we are still seeing resale prices and capital growth that are buoyant.
The recent re-opening of Australia's borders is another reason investors can be optimistic about the future value of their portfolios because international students and workers are starting to return.
If you're interested in buying a unit as a first investment property, or you wish to expand your portfolio, please do not hesitate to contact our agency. There are some great opportunities in our area, and we have an experienced property management team to meet your every need as a landlord.