RP Data says the number of units sold has been in decline since 2009, despite representing average discounts of $25,000 when compared to median house prices. RP Data says this will turn around though, due to demographic and development factors.
The proportion of unit sales has declined since 2009 despite, at a national level, representing a discount of $25,000 on median house prices, according to RP Data analysis.
Across individual capital city markets, the difference in selling price for houses and units ranges from $48,000 in Melbourne to $110,000 in Sydney and Canberra. However, 2011 Census data shows that 75.6 percent of occupied dwellings are houses.
RP Data also reported there has been a decline in the proportion of units sold, but research analyst Cameron Kusher says units are likely to grow in popularity over the coming years.
“Although unit sales pale in comparison to house sales across the country, as developable land becomes scarce and more expensive to develop, property developers are likely to focus on higher density housing,” Kusher says.
“Demographic factors are also likely to contribute to greater demand for units with baby boomers looking to downsize from their large family homes into something smaller and more easily maintainable. Also, the ongoing demographic shift to single person households and smaller families is likely to result in further growth in unit demand.”