- With the unit to house price ratio higher than ever, now may be the time to buy a unit
- Pete Wargent from BuyersBuyers believes the ratio tends to revert over time
- He selects top 10 suburbs which could be right for unit purchasing
With Australia’s house to unit price ratio at a record high, some experts are now saying the time is right to buy a unit in selected Sydney suburbs.
Pete Wargent is the co-founder of the national property buyer’s agency network
BuyersBuyers. He believes there is a clear distinction between high and low supply areas.
Purchasing a unit may seem counterproductive with the post-pandemic shift away from density into more spacious regional areas. This trend has pushed the price of detached houses significantly higher than units in many areas, tipping the balance back towards the latter.
“The city has become a mature global capital city, where apartment dwelling has become normal for professionals wanting to live near the city and the water,” said Mr Wargent.
The ratio of houses to units can be used as an indicator of future dwelling price movements. This particularly applies in popular more established areas.
Mr Wargent explains that this is because “…as the ratio tends to revert over time as affordability constraints bite for the most family-appropriate housing.”
Top 10 Suburbs to purchase units in Sydney:
1. Queenscliff
The unit to house price ratio is 39%.
Median Unit Price: $1,195,93. Median House Price: $3,056,731
2. Collaroy
The unit to house price ratio is 38%.
Median Unit Price:$1,027,415. Median House Price: $2,699,295.
3. Freshwater
The unit to house price ratio is 37%.
Median Unit Price:$1,055,112. Median House Price: $2,887,016.
4. Narrabeen
The unit to house price ratio is 36%.
Median Unit Price:$1,089,439. Median House Price: $3,040,190.
5. Manly Vale
The unit to house price ratio is 36%.
Median Unit Price:$917,830. Median House Price: $2,580,403.
6. Gordon
The unit to house price ratio is 30%.
Median Unit Price:$923,180. Median House Price: $3,055,622.
7. Roseville
The unit to house price ratio is 30%.
Median Unit Price:$923,805. Median House Price: $3,068,079.
8. Cremorne
The unit to house price ratio is 30%.
Median Unit Price: $1,152,206. Median House Price: $3,862,186.
9. Greenwich
The unit to house price ratio is 28%.
Median Unit Price: $927,300. Median House Price: $3,295,56.
10. Mosman
The unit to house price ratio is 23%.
Median Unit Price: $1,175,420. Median House Price: $5,091,737.
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