Unit values are increasing at a substantial rate, with value growth now surpassing that of houses, new data has found.
The RP Data Property Pulse report has found over the past five years, unit values for combined capital cities have climbed 6.0 per cent, up 1.2 per cent on housing values during the same period.
The recent strong performance of units is reflective of changing lifestyle patterns, particularly among first home buyers and young professionals, RP Data senior research analyst Cameron Kusher said.
“In markets such as Sydney and Melbourne, a lot of people will rent in the inner city...and they don’t necessarily want to give up that lifestyle,” Mr Kusher said.
“So trying to sell the dream of a quarter acre block 20 to 30km outside of city, which is realistically how far they will have to go to afford [a house], really isn’t appealing.”
RP Data's statistics shows Darwin led the pack between July 2006 and July 2011, with the average unit price increasing 12.3 per cent over the five year period.
Melbourne and Adelaide rounded out the top three, with average unit price growth of 8.4 per cent and 7.3 per cent, respectively.
Over the same period, unit values in Hobart increased 6.5 per cent; Canberra by 5.7 per cent; Brisbane by 5.4 per cent; and in Sydney by 5.3 per cent.