Growing preference for units over houses
Medium and high density housing accounts for 35 per cent of all home sales, and that number is increasing, a new report has claimed.
In 1995, medium density housing accounted for just 25 per cent of all home sales.
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According to the latest RP Data Property Pulse, more home buyers are choosing to live in the high density inner city housing lifestyle, particularly in the capital cities.
Since the tail-end of the 2005 property boom, the proportion of unit and apartment sales had been increasing however there was a disruption to this in 2009.
RP Data’s Cameron Kusher attributes this to the first home owner's grant boost and the sharp drop in interest rates which saw first home buyers flow back into the market.
As a result the property market witnessed a rebound in demand for detached houses.
“With the highest level of housing affordability since 2002, it was no real surprise to see first time buyers targeting detached homes,” Mr Kusher said.
However, with the boost now gone, it seems home buyers are once again returning to medium density housing and units.
During the last decade, Melbourne has recorded the greatest increase in the proportion of unit sales, up by 6.1 per cent.
“With the introduction of significant amounts of new unit development in areas such as Docklands and Southbank it is probably no surprise to see that units have increased in prominence over the period,” Mr Kusher said.
