houses-dry-up-feature
Housing options dry up? That may be the case with so many factors at play. Image: Canva.
  • 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. 

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