Unit prices falling behind: What investors need to know
In this episode of The Smart Property Investment Show, host Liam Garman speaks with Arjun Paliwal, CEO and head of research at InvestorKit, to examine the growing gap between unit and house prices across Australia.
Arjun explains that this divergence is uneven, with some markets seeing units keep pace with houses while others lag significantly.
His research highlights regions like Parramatta, Melbourne CBD, and South Canberra where units have underperformed, versus areas such as Adelaide’s Onkaparinga and Campbelltown where units have performed comparably.
Key factors driving these trends include supply and demand, investor confidence, and the quality of new builds, with oversupply and defects discouraging investment.
Arjun notes that while units may regain appeal in certain markets, houses typically offer stronger long-term value.
The discussion also touches on government initiatives like the First Home Guarantee, which can temporarily lift prices but require quick action to benefit.
He warns against common investor mistakes such as relying on informal advice, delaying entry, and ignoring professional guidance for portfolio diversification.
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