The Melbourne suburbs with Unit prices are increasing higher than the House prices
Melbourne’s suburbs have seen high unit price growth since past years, as the affordability for first home buyer comes into play.
Top nine suburbs with highest unit price increases also experienced units to outperform houses for growth in the year to March as per Domain Group Data.
Macleod topped the list with just over 58 per cent growth to a median unit price of $640,000, whereas house prices in the suburb grew by a much lower 9.5 per cent to $912,500.
Kew East, Strathmore, Moorabbin and Heidelberg Heights each saw unit prices increase by more than 35 per cent for the year, outpacing house price growth in these suburbs, which sat between 0.06 and 18 per cent.
Most of the top performers were middle-ring suburbs, which could also explain the appetite for units over houses in the areas.
“First-home buyers and people with about $600,000 to spend who want a house would go out to the outer ring, but a lot of people don’t want a house – they want to be closer to the city.”
Stamp duty cuts for first-home buyers and investor lending crack downs were driving prices in the affordable unit markets in the west.
Spotswood and Williamstown North made the top 10 for unit price growth, each with roughly a 28 per cent increase to medians of $601,000 and $546,000 respectively.
Newly-built and established townhouses – which are classed as units from a data perspective – were attracting not only first-home buyers, but young families to both suburbs.
