Brighter Buying

Market update: Cheap new build houses outpacing units

by Tiana Toledo, Sales Associate 28 November 2023

Many have dubbed 2023 the year of the apartment as value hunters seek out more affordable property types in response to interest rate rises and cost of living pressures.

But it seems somebody forgot to tell the new build market that units are typically cheaper than houses.

New data shows that 2- and 3- bedroom apartments with a price tag of $1 million to $2 million are making up the majority of the new build unit market in Australia.

While 4-bedroom houses with a price tag of between $500,000 and $750,000 make up more than a third of the new housing market in Australia.

The data comes from the November PropTrack New Homes Report and it tells a tough story for first home buyers wanting an affordable new build unit. Developers are catering to a different crowd.

“There is an increasing market for high-end apartments, as cashed-up couples with no children and downsizers want to live a low-hassle lifestyle without foregoing luxury,” reports realestate.com.au.

“To cater to these cohorts, developers are creating developments with hotel-style concierge services to manage dry cleaning and dog walking and adding amenities such as home cinemas, wine cellars and restaurants.”

This has resulted in a somewhat counterintuitive situation where new build homes can be more affordable than new build units.

“New-build houses are more reasonably priced; however, most new houses are built in greenfield areas further out of the city, where median prices are lower than in the inner ring, and they still cost more than an established property in the same suburb,” it says.

In Brisbane, value hunters may do well to consider established houses and units, while the middle ring still has some variety in new build price options if outer suburban life is a stretch too far.

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