For decades, the great Australian property dream was owning a detached house on its own block. But in recent years, particularly over the past 12 to 18 months, the dynamic of the housing market has shifted. Units have stepped into the spotlight, prompting many to ask: are units outperforming houses in Australia? No longer just the budget-friendly option, apartments and units in many cities and regional hubs are delivering strong capital growth and, in many cases, offering better rental yields than detached houses.
Why Are More Australians Choosing Units Over Houses in 2025?
Do units offer better capital growth than houses in 2025?
Whilst houses still dominate in long term land value, many suburbs units have recently matched and even surpassed houses in capital growth. This is particularly true in areas which are pushing buyers towards smaller, more central options.
How do unit prices compare to house prices in Australia right now?
The price gap between houses and units has hit record highs in some markets. For first time home buyers and investors this means you can often buy a unit in a blue chip location which is known for stability, consistent growth and low risk for the same price as a house much further from the CBD.
Are units delivering higher rental yields than houses?
Absolutely, especially in many inner and middle ring suburbs units are delivering higher rental yields. Strong tenant demand and low vacancy rates have seen well-positioned units outperform comparable houses on rental return. This is generating major attraction for investors who are looking for positive cash flow or reduced holding costs.
Is the current supply of units limited?
Yes. Rising construction costs and fewer new developments have constrained supply. This lack of new stock is putting upward pressure on the value of quality existing units, especially in lifestyle-rich suburbs.
For tailored advice on where and what to buy you can speak with our buyers agents, where they can guide you through every step of your property buying journey.
Are all units a good investment?
Definitely not. The best results usually come from buying the right unit, typically in smaller developments, well-connected to transport and close to local amenities. Quality of build, good design and a strong community feel can make all the difference to growth and rental demand.
Which Cities Are Leading the Unit Growth Trend?
- Sydney and Melbourne: Units in middle-ring, transport-connected suburbs are seeing strong demand as buyers are compromising on space for location.
- Perth: Inner-city and coastal units are gaining traction as affordability tightens in the house market.
- Brisbane: One of the clearest examples of units outpacing houses, with many suburbs recording stronger annual growth for units due to affordability pressures, high interstate migration and limited new apartment supply.
Omar’s Insight: Units Outperforming Houses in Brisbane
Our Brisbane-based Senior Buyers Agent, Omar, has been watching this market transformation closely.
Over the past 12–18 months, we’ve witnessed a notable shift in buyer behaviour across Brisbane. As affordability challenges continue to mount, particularly for detached houses and townhomes, more buyers are turning their attention to units — and the data reflects this change.
Driven by first-home buyers, downsizers, and savvy investors, demand for units has surged. This uptick in demand, coupled with limited inner-city supply, has resulted in units outperforming both houses and townhouses in terms of capital growth across many Brisbane suburbs.
Why?
It comes down to value. Units offer an affordable entry point into sought-after suburbs, often close to major employment hubs, transport, and lifestyle precincts. For many buyers, it’s a trade-off they’re willing to make — and increasingly, it’s proving to be a financially rewarding one.
But is this level of growth sustainable?
In the short to medium term, yes — particularly as interstate migration remains strong, rental yields are healthy, and the pipeline of new apartment construction remains constrained due to rising build costs. However, long-term sustainability will depend on supply catching up, the quality of stock being delivered, and broader economic conditions.
For now, units are having their moment — and buyers who adapt early to market shifts are reaping the rewards.
Is Now the Right Time to Buy a Unit Instead of a House?
If your goal is to:
- Enter a desirable suburb sooner
- Access better rental yields
- Minimise maintenance and running costs
- Benefit from strong tenant demand
then units could offer better value than houses, this is provided that you focus on well-located, quality properties with solid fundamentals.
How Can a Buyer’s Agent Help You Choose Between a Unit and a House?
A buyer’s agent can:
- Coordinate finance and legal steps through to settlement
- Analyse suburb-level growth and yield data for both units and houses
- Identify locations where units are outperforming houses
- Access off-market unit opportunities
- Negotiate to ensure you don’t overpay
Why Units Might Be the Better Way to Buy Property This Year
In today’s market, units are not just the cheaper option but in the right areas they are the better option too. As Omaer’s Brisbane experience shows, units can and often do outperform houses and buyers that adapt to this shift stand to benefit the most.
Ready to explore whether a unit or house is the right move for you? Speak to our buyers agents today and let us help you buy property better.
If you’d like to speak with Omar or anyone else in our team about buying an apartment, click here to find out more.
