Brisbane-based buyer’s agent Jack Freestone said buyers in southeast Queensland were trading backyard space for inner-city lifestyle and choosing apartments over houses.
The gap between the price of houses and units in Queensland is tightening in some suburbs and ballooning in others as buyers are priced out of houses and forced into the unit market.
It comes as apartments topple houses in price growth across multiple regions around the country according to data by Nuestar and Hotspotting.
Brisbane leads the charge, with 76.3 per cent of its apartment markets showing stronger growth than houses over the 12 months to May.
Apartments are becoming the preferred choice for both homeowners and investors.
29 Dukinfield Street, Bowen Hills is for sale via expressions of interest.
“With lifestyle benefits, lower costs, and outstanding locations, apartments are fast becoming the preferred choice for both homeowners and investors,” said Nuestar founder Michael Wilkins.
“Prices per square metre are continuing to rise, and developers are recognising that quality design, premium inclusions, and integrated amenity are increasingly the key to market appeal.”
Exclusive Ray White data revealed the top suburbs with the smallest gaps between houses and units, as well as the suburbs where house prices reigned supreme.
4/100 Champions Crescent, Brookwater is for sale at $1.1m.
402/47 Marine Parade, Redcliffe is on the market at $2,774,000.
In Brisbane, Augustine Heights – Brookwater had the smallest gap with a median house value of $1,022,944 compared to units at $1,009,969 — a $12,975 or 1.27 per cent difference.
Wolffdene (4.16%), Leichhardt (18.96%), Eagle Farm (14.37%) and Wacol (21.59%) rounded out the top 5 suburbs in the city with the smallest difference between house and unit prices.
On the Sunshine Coast, Caloundra West had the smallest gap of $174,407 while on the Gold Coast, Pimpama was the front runner with a gap of just $167,037.
Around the State, Miles in the Western Downs Region, recorded a $6,263 gap between the cost of houses and units.
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2502/5 Enderley Avenue, Surfers Paradise recently sold for $769,500.
On the other end of the scale, Newstead had the biggest price difference in Queensland with house medians sitting at $1.884m, and 71.31 per cent more than units.
New Farm, Ascot, Hamilton and St Lucia all recorded gaps of more than 60 per cent each, while on the Gold Coast, Surfers Paradise, Mermaid Beach and Bundall had huge price differences between houses and units.
On the Sunshine Coast, Buddina, Noosaville and Mooloolaba dominated.
Ray White Group chief economist, Nerida Conisbee. Picture: Supplied
Ray White economist Nerida Conisbee said it was getting harder to buy a house in the inner city with more buyers priced out than ever before.
“If you’ve got $750,000, you can probably buy a unit in most desirable suburbs in Australia, maybe not Sydney, but certainly in all other capital cities,” she said.
“Alternatively, you can also buy a house for that money on the urban fringe, which I think is a trade off that people make.
“So it’s a bit of a trade off. Do I want space? Do I want a big property? Or am I prepared to live in a much smaller home but have the amenities that are available to me in these suburbs that are generally in high demand?”
18 Charles Street, New Farm is on the market via expressions of interest.
Ms Conisbee said that as houses became more expensive, more buyers needed to embrace apartment living.
“It’s much cheaper, in terms of infrastructure, for us to get higher densities but it does require quite a shift in the way we look at housing and I think that’s the growing pains we’re going through at the moment,” she said.
Brisbane-based buyer’s agent Jack Freestone said buyers in southeast Queensland were trading backyard space for inner-city lifestyle, with many opting for townhouses and apartments over houses.
21206/37 Kyabra Street, Newstead is on the market with a price tag of offers over $715,000.
It follows Brisbane’s median house price hitting $998,000 while its median unit was now priced the same as its houses were just three years ago in April, 2022 ($690,000).
“More and more buyers in Brisbane and the Gold Coast are choosing to stay in well- connected inner suburbs, even if it means compromising on the type of property they can afford,” Mr Freestone said.
“Rising prices mean a lot of these people can no longer afford to buy a house close to the city, but instead of buying a cheaper house in the outer suburbs, they’re choosing to purchase townhouses or apartments in the inner ring.”
Mr Freestone said the trend was particularly popular among couples without children and young families who valued access to amenities, transport and schools.
REA Group economist Anne Flaherty
REA Group economist Anne Flaherty said buyers were having to compromise when entering or even upgrading in the property market.
“We’re seeing a lot of different buyers struggling with the massive price rises in Brisbane,” she said.
“Increasingly we are seeing families moving into apartments now where as 20 years ago it was standard to buy a house with a garden if you had a family.
“That mindset is starting to change and it comes back to affordability.”
Famlies are increasingly moving into apartments. This property at 2502/5 Enderley Avenue, Surfers Paradise recently sold for $769,500.
But she pointed out the rising costs of building apartment blocks was also contributing to higher unit median prices.
“We typically think of a house as being more expensive than a unit but what we are seeing is the cost per square metre of building an apartment at a much higher rate than it used to be and much higher than building a house,” she said.
“A lot of the new apartments are premium apartment stock targeting cashed up downsizers looking for a more luxurious apartment.
“It you have a suburb and units are being developed for $900,000 plus, that actually skews the median unit prices in that entire area upward.”
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