Sydney’s status as the priciest capital city is in jeopardy, with values in another capital creeping higher.
Although Sydney has the priciest property market in Australia for houses, it ranks third for unit values when including Australia’s largest regional cities in the equation.
Two regional cities already have higher median unit prices than Sydney, and one booming capital is set to leapfrog the harbour city if prices keep growing at the current rate, PropTrack data shows.
The Sunshine Coast is Australia's priciest city for buying an apartment, with the median unit price approaching $1 million. Picture: Getty
Australia’s most expensive city for units is the Sunshine Coast, with a $983,000 median unit price, according to data comparing median unit prices in capital and regional cities.
That’s just ahead of the Gold Coast where a typical unit costs $966,000, and more than $100,000 higher than Sydney’s $881,000 median unit price.
But one city has risen through the ranks after a price surge in the past year to rival Sydney for unit values.
Top 20 capital and regional cities by unit prices
| City | State | Median unit price | 12 month price growth | |
| 1 | Sunshine Coast | QLD | $983,000 | 9.9% |
| 2 | Gold Coast | QLD | $966,000 | 8.8% |
| 3 | Sydney | NSW | $881,000 | 2.8% |
| 4 | Brisbane | QLD | $864,000 | 18.0% |
| 5 | Newcastle and Lake Macquarie | NSW | $801,000 | 7.1% |
| 6 | Illawarra | NSW | $800,000 | 4.7% |
| 7 | Adelaide | SA | $704,000 | 13.9% |
| 8 | Perth | WA | $695,000 | 16.6% |
| 9 | Toowoomba | QLD | $645,000 | 24.0% |
| 10 | Bunbury | WA | $636,000 | 4.6% |
| 11 | Melbourne | VIC | $623,000 | 1.5% |
| 12 | Hobart | TAS | $609,000 | 6.2% |
| 13 | Canberra | ACT | $606,000 | 0.7% |
| 14 | Geelong | VIC | $575,000 | 0.6% |
| 15 | Townsville | QLD | $527,000 | 25.0% |
| 16 | Launceston and North East | TAS | $527,000 | 14.2% |
| 17 | Darwin | NT | $484,000 | 16.9% |
| 18 | Bendigo | VIC | $477,000 | 6.4% |
| 19 | Cairns | QLD | $459,000 | 17.7% |
| 20 | Ballarat | VIC | $437,000 | 14.2% |
Brisbane now has a median unit price of $864,000, which is just $17,000 below Sydney’s.
This comes after unit values in Brisbane grew by 18% in the past 12 months, while Sydney’s median unit price increased by just 2.8%.
Newcastle and Wollongong are the next priciest cities for units, with median prices around the $800,000 mark.
Coastal NSW cities such as Wollongong (pictured) and Newcastle are among the priciest in Australia. Picture: Getty
Adelaide ($704,000), Perth ($695,000), Toowoomba ($645,000) and Bunbury ($636,000) round out the top 10.
Melbourne sits in 11th place with a $623,000 median unit price, just ahead of Hobart ($609,000) and Canberra ($606,000).
The data captures median unit values across Greater Capital City Statistical Areas (GCCSA) for the capitals and SA4 regions for major regional cities.
It reveals the huge contrast between slow and steady unit price growth in Australia’s largest cities with the rapid pace of growth recorded in most other capital and regional cities in the past year.
It's cheaper to buy a unit in Melbourne than in Toowoomba. Picture: realestate.com.au/buy
Sydney and Melbourne were outpaced for unit price growth by all the other capitals except Canberra, where prices rose just 0.6% in the past year.
Unit prices in Perth and Darwin have gone up almost 17% in the past year, while Adelaide apartment values are almost 14% higher than a year ago.
But even that rapid price growth was unmatched by smaller cities such as Townsville (up 25%) and Toowoomba (up 24%), where unit price growth exploded following a surge in buyer demand in affordable regional centres.
Units outpace houses across Australia
Unit prices have grown faster than houses across Australia over the past year, with units lifting 6.7% compared with 5.6% growth for houses.
This is a reversal of the usual state of play, with PropTrack data showing that price growth for houses outpaces units most of the time.
REA Group senior economist Anne Flaherty said the relative affordability of units compared with houses was the key driver of this recent outperformance.
“Despite recent declines, home prices remain close to record highs and houses have become out of reach for a growing share of buyers, driving more to the unit market,” she said.
“Given the higher average mortgage size for houses, this property type is also typically more sensitive to interest rate rises.”
Sunshine Coast units approach million-dollar milestone
The median unit price on the Sunshine Coast climbed almost 10% higher in the past year, and sits just shy of $1 million, which is about the same price as a typical Melbourne house.
Demand from investors had helped fuel much of that price growth, according to Sunshine Coast real estate agent Yianni Mooney, but downsizing owner occupiers were the main buyer type at the moment, particularly for pricier properties.
Get your realEstimate™
Track your property's value and unlock insights and data tailored for property owners.
Strong growth in house prices meant many downsizers were equipped with significant equity gains and were willing to pay up for the right property, Mr Mooney said.
“They’ve probably sold their family home for more money than what they expected and they’ve got a pretty healthy budget,” he said.
“For a lot of people this might be their last purchase before aged living and they want to get it right so they’re happy to pay a bit more for the right location, a view or a northern aspect.”
High-end developments drive price growth
Ms Flaherty said part of the reason units in Queensland have grown so much in value recently was the fact that a large proportion of apartments constructed in Queensland were at the upper end of the market.
“The kinds of apartments being built in Queensland are having a really big impact,” she said.
“Nationally, 55% of new apartment developments are priced at $1.5 million or above. In Queensland it’s 73% of apartment developments.”
A greater proportion of apartment stock developed in Queensland in recent years is targeted towards the upper end of the market. Picture: realestate.com.au/buy
Ms Flaherty said soaring building costs had prompted more developers to construct higher value apartments to ensure developments remained profitable.
“Because it’s so expensive to build, they need to focus on the high end,” she said.
Brisbane real estate agent and Ray White West End principal Luke O’Kelly said the target buyer of new apartments in Brisbane had shifted, which influenced the type of apartments being built.
“If you go back 10 years ago a lot of apartments were built targeting investors and the rental market.
“That has changed significantly to be almost exclusively targeted at owner occupiers. As such the finishes are nicer and the apartments are larger.”
Buyers prioritise value and lifestyle
Brisbane was where units outperformed houses the most, even though house values have also grown at a fast pace.
Median unit prices in Brisbane values rose 18%, compared with 12% for houses.
Mr O’Kelly said the value proposition of one-bedroom and two-bedroom apartments appealed to first-home buyers prioritising lifestyle.
Low-maintenance units loaded with amenities have been a hit with both first-home buyers and downsizers in Brisbane seeking homes closer to the city. Picture: realestate.com.au/sold
“As Brisbane housing prices have gone up dramatically, units have become a lot more of an attractive purchase,” he said.
“Instead of buying a million-dollar house further out, they’re buying an inner city apartment.”
“You can buy something with less maintenance and all the facilities rather than having to buy further out for the same budget.”
English (US) · 