- Apartment market strong, as price growth outpaces houses for the first quarter of 2022
- However, house price growth has been stronger than units longer term
- Units can be a good option for better locations
While some believe the apartment market is strong, and indeed it seems that way, first home buyers don’t seem to be too restricted when it comes to choosing their first home.
Canstar’s top 10 lists mostly consist of houses, along with the odd unit option here and there. Depending on your salary, other research found that units are indeed the way to go.
Sydney units strong
That’s what CEO of developer ALAND, George Tadrosse, believes.
Mr Tadrosse said “Demand for units is high as rising interest rates encourage domestic buyers to shift their focus to the apartment market. But now that international borders have opened up, apartment purchasers will also have to face competition from foreign
residents who may be looking to rent or buy in Sydney.”
While little stock will be coming into the marketover the next 24 months, according to Mr Tadrosse, worries shouldn’t be mounting.
“The good news for owner-occupiers is that lending policies have accounted for an
inevitable rate rise to help future proof the serviceability of loans,” Mr Tadrosse added.
New data from CoreLogic supports the strength of the apartment market, indicating
rents are now outpacing those of houses.
In its latest Quarterly Rental Review, CoreLogic showed national unit rents have
bucked the trend seen since May 2019. They actually rose at a faster pace than
national house rents over the first three months of 2022, recording a quarterly
growth of 3% while houses only increased by 2.4%.
Similar to the national results, unit rents in the combined capitals also outperformed house rents over the first quarter, increasing 3.1% compared to 2.2%.
SQM Research also found units out-paced houses for rental growth in the most recent quarter, all units up 4.2% nationally, as compared to all houses, up only 3.8%.
Houses saw more growth than units when looking at a yearly change though, SQM Research found rents for houses grew by 14.4% for the year, units 12.2%.
Canstar report
If you’re looking for a spot close to Maroubra beach then a unit in Hillsdale is a great spot, according to Canstar’s The Australian First Home Buyer Report.
Units in Liverpool and Sutherland were also choice spots for a unit in Sydney.
| Suburb | Median price | 1-year growth | Median rent |
| Bradbury | $650,000 | 12% | $520 |
| Doonside | $740,000 | 15% | $400 |
| Hillsdale (U) | $680,000 | 14% | $400 |
| Kingswood | $770,000 | 20% | $400 |
| Leumeah | $685,000 | 11% | $395 |
| Liverpool (U) | $470,000 | 5% | $350 |
| Lurnea | $800,000 | 16% | $450 |
| Mt Druitt | $770,000 | 15% | $405 |
| St Marys | $760,000 | 16% | $400 |
| Sutherland (U) | $685,000 | 6% | $460 |
Source: Canstar.
Units were also recommended in the report for the Melburnian suburbs of Brunswick East, Cheltenham, and Preston.
| Suburb | Median price | 1-year growth | Median rent | Initial Outlay | Time to save (single income) | Time to save (dual income) | Monthly repayments | |
| Broadmeadows | $580,000 | 5% | $360 | $117,560 | 12 yrs | 5 yrs 7 mths | $1,986 | |
| Brunswick East (U) | $585,000 | 12% | $410 | $118,572 | 12 yrs 2 mths | 5 yrs 8 mths | $2,004 | |
| Caroline Springs | $680,000 | 5% | $420 | $156,924 | 16 yrs 2 mths | 7 yrs 6 mths | $2,329 | |
| Cheltenham (U) | $675,000 | 11% | $430 | $154,567 | 15 yrs 11 mths | 7 yrs 4 mths | $2,312 | |
| Cranbourne | $590,000 | 18% | $375 | $119,584 | 12 yrs 3 mths | 5 yrs 8 mths | $2,021 | |
| Dallas | $505,000 | 10% | $340 | $102,385 | 10 yrs 3 mths | 4 yrs 10 mths | $1,730 | |
| Epping | $630,000 | 6% | $400 | $134,250 | 13 yrs 10 mths | 6 yrs 5 mths | $2,158 | |
| Narre Warren | $670,000 | 13% | $405 | $152,230 | 15 yrs 8 mths | 7 yrs 3 mths | $2,295 | |
| Preston (U) | $630,000 | 26% | $390 | $134,250 | 13 yrs 10 mths | 6 yrs 5 mths | $2,158 | |
| St Albans | $660,000 | 10% | $360 | $147,615 | 15 yrs 3 mths | 7 yrs | $2,260 | |
Best Melbourne suburbs for first home buyers on a 20% deposit. Source: Canstar.
As for Brisbane, unit buyers can look to Annerley, Clayfield, and Redcliffe for their first units.
| Suburb | Median price | 1-year growth | Median rent | Initial outlay | Time to save (single income) | Time to save (dual income) | Monthly repayments |
| Annerley (U) | $420,000 | 5% | $360 | $85,282 | 8 yrs 8 mths | 4 yrs 1 mth | $1,438 |
| Bundamba | $335,000 | 26% | $325 | $67,986 | 6 yrs 9 mths | 3 yrs 3 mths | $1,147 |
| Caboolture | $435,000 | 28% | $360 | $88,356 | 9 yrs | 4 yrs 3 mths | $1,490 |
| Clayfield (U) | $400,000 | 10% | $365 | $81,208 | 8 yrs 2 mths | 3 yrs 11 mths | $1,370 |
| East Ipswich | $355,000 | 14% | $320 | $72,060 | 7 yrs 2 mths | 3 yrs 5 mths | $1,216 |
| Edens Landing | $445,000 | 21% | $385 | $90,393 | 9 yrs 3 mths | 4 yrs 4 mths | $1,524 |
| Goodna | $350,000 | 22% | $330 | $71,023 | 7 yrs 1 mth | 3 yrs 5 mths | $1,199 |
| Inala | $415,000 | 24% | $350 | $84,282 | 8 yrs 6 mths | 4 yrs 1 mth | $1,421 |
| Redcliffe (U) | $455,000 | 20% | $380 | $92,430 | 9 yrs 5 mths | 4 yrs 6 mths | $1,558 |
| Woodridge | $335,000 | 18% | $340 | $67,986 | 6 yrs 9 mths | 3 yrs 3 mths | $1,147 |
Best Brisbane suburbs for first home buyers on a 20% deposit. Source: Canstar.
HOOD.ai research found units the way to go
In other market research, HOOD.ai whittled down the top ten suburbs to buy in on an average salary, and the majority seemed to be units.
| Rank | State | Suburb | Postcode | Type | Median sale price | Distance to CBD* |
| 1 | VIC | Tyabb | 3913 | Unit | $460,000 | 50km |
| 2 | VIC | Manifold Heights | 3218 | Unit | $462,500 | 68km |
| 3 | VIC | Sydenham | 3037 | Unit | $470,000 | 18km |
| 4 | VIC | Truganina | 3029 | Unit | $471,000 | 37km |
| 5 | SA | Maslin Beach | 5170 | House | $475,000 | 22km |
| 6 | QLD | Pacific Pines | 4211 | Unit | $477,000 | 62km |
| 7 | VIC | Sunbury | 3429 | Unit | $480,000 | 33km |
| 8 | VIC | Cranbourne North | 3977 | Unit | $485,000 | 50km |
| 9 | VIC | Grovedale | 3216 | Unit | $495,000 | 68km |
| 10 | SA | Surrey Downs | 5126 | House | $500,000 | 17km |
Top 10 suburbs to buy in on an average salary. Source: HOOD.ai.
Have you chosen your cliché yet?
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Disclaimer: This article contains general information and should at no time be considered advice to the reader. The reader should always verify their situation with the relevant certified professionals before taking any further steps.
