【Australian property prices】

Domain predicts strata unit price growth will outpace house growth by 2025

【Australian property prices】 Domain predicts strata unit price growth will outpace house growth by 2025

Strata units are expected to outpace detached houses in Australia’s major cities by 2025, according to new data from Domain. Domain head of economics and research Nicola Powell said the trend would bring new dynamics to the property market, especially for new buyers who are looking to buy a home, as apartments and gardens are becoming more popular. Townhouse prices are still relatively attractive to buyers.

Powell said: “Historically, houses have generally outperformed strata units in terms of capital growth. However, nothing is certain and by 2025, we expect strata unit prices in Brisbane, Australia, to exceed According to Domain’s year-end report, Brisbane house prices are expected to rise by 5% to 7%, while strata unit prices are expected to rise by 7% to 9%. This makes Brisbane one of the only major cities where strata unit values will grow faster than houses, while the values of strata units and houses in other cities will grow at similar rates.

Powell analysis points out that this trend will make strata units more attractive for shopping, especially for younger buyers to enter the market more conveniently. For first home buyers this will provide the opportunity for capital growth and help start their investment journey in the property market. In contrast, as the price of detached houses continues to rise, the pressure on first-time homebuyers to purchase detached houses is gradually increasing. Therefore, the rising trend in the value of strata units is expected to encourage more people to consider strata units as a first choice for entering the property market.

In the past, the Australian property market favoured freestanding residential properties, reflecting a desire for the traditional house and land package. However, with economic pressure and changes in demographic structure, stratified units are gradually becoming the mainstream choice. In addition, some buyers have begun to choose townhouses instead of detached houses and land. If you want to know more about the real estate market in Brisbane, Australia, please contact Betty from Changmei Australia Property to get the latest market information!

Powell said: “Historically, houses have generally outperformed strata units in terms of capital growth. However, nothing is certain and by 2025, we expect strata unit prices in Brisbane, Australia, to exceed According to Domain’s year-end report, Brisbane house prices are expected to rise by 5% to 7%, while strata unit prices are expected to rise by 7% to 9%. This makes Brisbane one of the only major cities where strata unit values will grow faster than houses, while the values of strata units and houses in other cities will grow at similar rates.

Powell analysis points out that this trend will make strata units more attractive for shopping, especially for younger buyers to enter the market more conveniently. For first home buyers this will provide the opportunity for capital growth and help start their investment journey in the property market. In contrast, as the price of detached houses continues to rise, the pressure on first-time homebuyers to purchase detached houses is gradually increasing. Therefore, the rising trend in the value of strata units is expected to encourage more people to consider strata units as a first choice for entering the property market.

In the past, the Australian property market favoured freestanding residential properties, reflecting a desire for the traditional house and land package. However, with economic pressure and changes in demographic structure, stratified units are gradually becoming the mainstream choice. In addition, some buyers have begun to choose townhouses instead of detached houses and land. If you want to know more about the real estate market in Brisbane, Australia, please contact Betty from Changmei Australia Property to get the latest market information!