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The great property flip: Units to win the growth race
Unit values have continued to surge nationwide, outperforming houses in most markets, with new high-rise apartments gaining growth momentum.
According to the McGrath Residential Price Index, which analysed 30 East Coast markets, dwelling prices grew by an average of 5.7 per cent annually in Q2 2026, led by Brisbane apartments.
Across the country, units have continued to outperform houses in most markets, with Brisbane recording value up to 21.6 per cent, the highest growth on the East Coast, compared with 18.5 per cent for houses.
Similarly, regional Queensland apartments recorded 15.6 per cent growth in the 12 months to Q2 2026, marginally higher than regional houses at 15.1 per cent.
In the other Eastern capitals, Sydney units increased 3.3 per cent, slightly ahead of Sydney houses at 3.0 per cent.
In Melbourne, apartments rose 3.2 per cent over the year, while house values fell 0.5 per cent.
On the other end, Hobart and Canberra bucked the trend, with houses outperforming apartments by 1.4 per cent and 5.2 per cent points respectively.
According to McGrath national head of research Michelle Ciesielski, the data points to stronger demand for established apartments as affordability increasingly shaped where buyers could compete.
“Apartments provide a lower price point into many established markets, and the Index shows apartment values outperforming houses in Brisbane, Sydney and Melbourne over the past 12 months,” Ciesielski said.
“For buyers who want to remain close to employment, infrastructure and established amenity, apartments can provide an alternative when detached housing becomes increasingly difficult to afford.”
New apartment build growth
While established apartments have been on investors' radar for price growth, McGrath Residential Price Index showed that high-rise new apartments have gained momentum.
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Data found that new high-rise apartments also recorded strong annual price growth in South-East Queensland, increasing by 14.0 per cent in Brisbane and 13.9 per cent on the Gold Coast.
Similarly, new high-rise apartments in Melbourne recorded 7.2 per cent annual growth.
Conversely, prestige apartment values recorded mixed results across the major cities.
Brisbane led growth at 4.9 per cent annually, followed by Melbourne at 3.4 per cent and the Gold Coast at 2.8 per cent.
Sydney was the exception, with values declining 1.6 per cent.
Ciesielski said the stronger new high-rise apartment performance was positive, but developers continue to face challenges getting new housing projects off the ground.
“Developers are being called on to build more homes, but ultimately projects still need to be financially viable.
“New apartment prices are an important part of that equation, and where achievable selling prices do not support the cost and risk associated with development, getting projects out of the ground remains difficult.”
She said Sydney highlighted the challenge, with new high-rise apartment values rising just 1.3 per cent over the past year and falling 0.6 per cent in the latest three months, limiting developers' incentive to bring new projects to market.
“There is an important distinction between planning for more housing and actually delivering more homes. Developers need confidence that a project will be feasible before construction can proceed.”
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