hotspotting.com.au and propertyU
Units and townhouses – not houses – are in the capital-gains spotlight. The apartment vs house trend shows attached housing outperforming in price growth across Sydney, Melbourne, and Brisbane.
Why is this happening? The short answer is that affordability constraints make units very appealing for those seeking excellent value and high potential returns.
You only have to study Cotality’s latest Home Value Index to see the remarkable difference in performance between houses and units. Busy Brisbane is an excellent example. The city’s median house value of $1,062,109 – the second highest in the country, after Sydney – follows an annual increase of 8.1%, which is definitely more than respectable.
Until, that is, you look at Brisbane’s unit market, which has seen a whopping 12.4% annual value gain, the best Australia-wide.
Mind you, the property pendulum is always swinging back and forth, so houses will very likely come back into favour at some stage. I certainly believe that in the much longer term, houses are likely to outperform units in terms of capital growth. Such is the cyclical nature of demand for different housing types. But, working against houses right now is their higher cost, relative to units, in any given area.
If you’re keen to buy a unit there are plenty on offer, but hot markets should also indicate buyer caution. You must be careful not to get caught up in the frenzy and overpay for a property now that will stagnate in the future.
Let’s look at some of the factors driving their current high favour.
Affordability is the key reason apartments and townhouses are now so popular. After all, even a basic grocery shop can leave buyers with an outsized bill, so any way to save money these days is highly appealing.
And, despite generally being smaller than houses, modern attached housing can feel spacious. Most apartments usually offer at least one balcony and clever, efficient design. Pick a townhouse, and you can add a nice green courtyard or garden to the mix.
Regardless of the size of their dwelling, today’s apartment or townhouse owners are also enjoying very sizeable value increases.
For downsizers, especially seniors, apartments and townhouses are ideal properties. For these buyers, units are the perfect mix of low-maintenance, easy-care real estate and plenty of bang for the buck. These properties are also great set-and-forget homes for keen senior travellers. Of course, the ones that appeal most are single-level apartments with lifts providing level access to your vehicle and/or street front.
Depending on how much you want to spend and where you want to buy, modern apartments and townhouses can include almost more space than a house, to say nothing of first-class modern appliances. And that’s just inside. I’ve seen apartments and townhouses with balconies, patios, and gardens on several sides of the property, with at least a few of these alfresco areas offering barbecue space and fantastic scenery.
The truth is that these spaces can be packed with beautiful and functional fittings and fixtures too.
This is where units can often dominate over houses.
Attached housing is often positioned in our established suburbs close to town, where it’s easy to access great restaurants, cafes and nightlife.
But more and more savvy developers are building apartments and townhouses in fast-growing new locations, too, with an abundance of new lifestyle amenities being established. As a result, supermarkets, schools, cafes, restaurants, shopping centres, parks, and much more are only a walk away from your unit or townhouse. And, don’t forget public transport, as well as major highways and freeways, are often within a short distance as well.
There are plenty of reasons why attached housing is having its time in the sun right now. The key to long-term success with these properties, however, is choosing the right asset. To ensure you purchase the right kind of unit or apartment for long-term financial security, turn to an expert in the field. As experienced property people, we can lead you through the ups and downs of acquiring and living in a unit or townhouse. We’ll guide you through the ins and outs of body corporate fees and by-laws, and we have ample resources and networks at our fingertips to conduct comprehensive due diligence. All this effort is to ensure maximum benefit from your unit buying decision.
To have one of the friendly Propertybuyer Buyers' Agents to contact you:
call us on 1300 655 615 today.