Sydney, Melbourne house prices: Suburbs where unit values are rising 11 times faster than houses

Already a subscriber?Unit values in six out of 10 suburbs across the capital cities rose faster than houses over the past three months – as much as 11 times faster – driven by strong demand from investors seeking higher rental yields and home buyers looking for affordable options, data from CoreLogic shows.and accelerating unit values have narrowed houses’ premium over units to 45.4 per cent, down from 45.6 per cent in the previous three months. During the same period, house prices rose by 1.

“Investors are snapping up apartments because they are more affordable and the yields are becoming quite attractive at around 5 per cent, so it makes sense from a cash flow perspective,” Mr Kuru said.“I think apartment values will increase substantially in the next two to three years because there’s barely any new apartments being built, and we’re still going to get relatively strong immigration.”, a bigger rise in unit values at 5 per cent compared with the 2.

In Sydney, unit values jumped more than seven times higher in Picton, located 90 kilometres south-west of the city, and by the same amount in Willoughby in the Lower North Shore. High demand for units lifted values more than five times higher than houses across Telopea in the Parramatta area, and in Brighton-Le-Sands and Strathfield South in the inner west.

But although units are likely to outpace house price growth over the next few years, the tide could quickly turn once more supply is added to the market, according to Mr Lawless.

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