There’s a lot of misinformation floating around about house prices compared to unit prices. Some people believe house prices shoot up dramatically faster than units, but is that really true? Today, we’re breaking down the facts to help clear things up.

House Prices vs Unit Prices: The Short-Term View

According to data from PropTrack in August, house prices went up by 0.27%, while unit prices rose by 0.07%. Yes, houses outperformed units – but not by a huge margin. When you look at these numbers, it’s clear that while houses have the upper hand, the difference isn’t as dramatic as many might think.

Now, let’s take a step back and look at the last two years. Once again, according to PropTrack, house prices increased by 6.4%, and unit prices went up by 5.2%. Again, houses did better, but the gap isn’t as wide as the hype suggests.

Looking at the Long Term: 25 Years of Data

For a broader perspective, let’s turn to a study by CoreLogic and Aussie Home Loans, which looked at price growth over a 25-year period from 1997 to 2018. Over this long-term period, house prices across Australia increased by an average of 6.8%. And what about units? Units grew by 5.9% on average over the same period.

This long-term data shows that while house prices did outperform unit prices, the difference is less than 1%. The average growth difference over 25 years is only 0.9%. That’s much closer than many would have you believe.

What Does This Mean for Buyers?

The key takeaway here is that both houses and units perform well over time. If you’re in the market and trying to decide between a house or a unit, the difference in long-term price growth isn’t as significant as some make it out to be.

What really matters is finding a property that suits your budget and long-term goals. Whether it’s a house or a unit, the smart money is on buying, holding, and letting time do the heavy lifting.

Final Thoughts

Both houses and units have shown steady growth in Australia over the years. The idea that houses far outperform units is mostly noise. The difference is only 0.9% over the long term, which means both types of properties are solid investments if you’re in it for the long haul. So, if you’re trying to choose your next property, focus on what you can afford and hold onto it – that’s where the real value lies.

Remember: buy, hold, and let the market work for you. That’s the TMAP way.