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Units more popular than houses

By Staff Reporter
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Units are a more popular choice for investment than houses, according to research by RP Data.

The data shows that nationally, 58 per cent of units are investor owned, compared to only 21 per cent of houses.

This difference is even higher in capital cities, with over 70 per cent of apartments owned by investors in both Darwin and Brisbane.

RP Data’s research blog says that “similar to owner occupiers, it partly comes back to price points. The unit market generally offers a lower buy in price than detached or semi-detached homes.”

According to RP Data, these figures can also be attributed to higher rental yields for units than detached houses in almost every capital city.

Rich Harvey, CEO and founder at Propertybuyer, said that he is not surprised by the data.

“Apartments are certainly more affordable than houses in most locations, so there’s a price point preference,” he said.

“Second thing is, apartments are generally cheaper to maintain and don’t require as much ongoing maintenance and expense. The body corporate expense too is like forced savings program, to be put into a kitty and spent as the property depreciates over time.

“The next thing is location. Apartments are often located in higher density areas, located closer to cafes, shops, amenities, restaurants, entertainment precincts and work places, so there’s very strong demand for tenants.  

“Investors will prefer apartments in city areas as they can get a better cash flow return,” Mr Harvey said.

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