House And Unit Value Disparity At All Time High
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House And Unit Value Disparity At All Time High

Unit values have continued to underperform.

By Terry Christodoulou
Mon, Feb 21, 2022 10:49amGrey Clock 2 min

Market desire for space has seen the price gap between houses and units accelerate to a new record high.

According to CoreLogic’s new monthly Unit Market Update, the disparity between Australia’s house and unit values has reached 28.3% in January the highest ever level.

House prices across the country have seen the highest growth rates since 1989 — up 24.8%  —however units have increased only 14.3% in the 12 months to January.

Report author and CoreLogic research Analyst Kaytlin Ezzy said houses do typically outpace units, albeit not at the market current place.  

“The annual performance gap between houses began to narrow in the final three months of last year — in part due to the lifting of lockdowns and border restrictions, as well as increasing affordability constraints diverting demand towards the medium to high-density sector,” Ms Ezzy explained.

“However, in January we saw that annual performance gap start to widen again, which could, in part, be explained by the disparity between advertised house and unit supply.”

Unit values have continued to underperform, however, there are shifting tides in some capital cities. Canberra (5.6%), Darwin (2.6%), regional Victoria (5.7%), and regional Tasmania (9.2%) all recorded stronger unit growth over the last quarter compared to houses.

Hobart’s unit market has in the past 12 months been the nation’s strongest performer with median prices up 32.8% over the year compared to 26.3% capital gain for houses.

Sydney’s unit values have also sharply ascended 15.4% with the median price to $837,640 which is the highest in Australia.

 Over the same period, capital city house listings were down 12.5% compared to this time last year and 32.7% below the five-year average.

Yet, despite the threat of interest rates rising, Ms Ezzy said unit markets could see increased demand this year.

“It is likely affordability constraints will gradually pull some demand away from houses towards more affordable units and with international borders opening this month, Australia may gradually see a return to pre-COVID levels of migration.”



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After more than a year, prices have finally levelled out in prime central London, while outer London saw a small uptick in high-end prices from the previous quarter

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The first quarter of the year brought some long-awaited signs of recovery in London’s luxury housing market, offering the first positive quarterly price growth since September 2022, according to a report from Savills on Wednesday.

After six consecutive quarterly price falls, luxury home prices in central London levelled out in the first three months of the year, with a 0.1% quarterly uptick in prices. The £3 million to £5 million (US$3.79 million to US$6.32 million) market saw a slightly larger increase of 0.3%.

Outer London’s luxury market saw greater quarterly price growth, with home prices up 0.8%, as some stability returned to mortgage costs and lured more buyers back to the market, according to the report.

All of this is evidence that the market is “in early stages of recovery,” according to Lucian Cook, head of residential research at Savills.

“The outlook for the housing market has certainly improved, partly because the mortgage market has recovered more quickly than expected,” Cook said in the report. “With the first rate cut rapidly coming into view and recessionary risks easing, greater stability has returned to the cost of mortgage debt, which has positively impacted domestic prime markets, where many buyers rely on borrowing, most notably in leafy outer prime South and West London, as well as the commuter belt.”

Outside of London, prices across the U.K. saw no quarterly growth heading into the beginning of the spring market, which is expected to bring higher levels of buyer activity in many regions.

Suburban regions saw prices dip just 0.1%, while urban areas—like Edinburgh and Glasgow in Scotland, and Bath and Oxford in England—saw prices increase by 0.6%.

Cook said regional buyers are more likely to be concerned about market uncertainty than London buyers in the lead up to the general election.

“As a result, buyers are still expected to be less committed until the dust has settled,” he said.

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35 North Street Windsor

Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.

11 ACRES ROAD, KELLYVILLE, NSW

This stylish family home combines a classic palette and finishes with a flexible floorplan

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