UNITS are outpacing houses in sale price growth across numerous Perth suburbs, as a competitive market leaves buyers more open affordable dwelling types.
According to REIWA, units are overshadowing house price growth across 19 suburbs in Western Australia’s capital, with this most clearly observed in Joondalup, Maylands and Rockingham.
“Unit prices were especially impacted during the market downturn, falling 17 per cent since their peak compared to house prices which fell 13 per cent,” said Damian Collins, president at REIWA.
“Typically, it takes a longer time for the unit market to catch up to houses when prices rebound, however, these 19 suburbs are bucking the trend and seeing unit prices grow at a stronger rate than houses.”
In Joondalup the annual increase in median house sale price was 7.6% to $529,000, while unit price growth over the same period was x4.16 greater at a 31.8% increase to $402,500.
Likewise, Maylands saw an increase in median house sale price of 9.1% to $720,000, while unit price growth was x3.52 greater at a 32.0% increase to $382,700.
In Rockingham there was an increase in median house sale price of 10.9% to $421,250, while unit price growth was x3.18 greater at a 34.5% increase to $282,500.
“Competitive market conditions have been a driving factor of the strong unit price growth in these suburbs, with many buyers broadening their search to include units,” said Collins.
Meanwhile Mosman Park recorded the most significant increase to its median unit sale price, with a 39.3% increase over the year to $430,000, x2.44 more than the 16.1% increase to $1.625 million for house prices.
“In addition, many people are opting for units as a more affordable lock and leave option, getting them into affluent suburbs like Mosman Park where the median house price is nearly four times more than the median unit price,” added Collins.
Overall Perth’s median unit sale increased by 5.2% over the last six months, reaching $405,000.
“It’s pleasing to see such steady growth across the Perth unit market, and we don’t see this slowing down any time soon. With continued buyer demand and low available stock, more buyers may turn to units as an alternative entry into the WA property market,” concluded Collins.