- Median sale price of units/apartments in Perth at June 2018 was $410,000, which is 82% of the median price of houses and townhouses.
- Over the last 15 years this ratio has been consistent and the median price for both units/apartments and houses/townhouses grew by the same rate.
- Proportion of unit/apartment sales over the last 15 years also remained consistent, at around a quarter of total dwelling sales in Perth.
- Achieving Perth’s 47% infill housing development target requires lift in unit and apartment purchases and/or greater reliance on the medium-density options of townhouses and backyard subdivisions.
Recent Bureau of Statistics data answers two key questions about high density housing in Perth today. What is the unit and apartment share of total dwelling sales and how does the median sale price for units and apartments compare with the broader market?
The ABS1 median sale price of existing and new units/apartments in Perth at June 2018 was $410,000, which is equivalent to 82% of the median price of houses and townhouses ($500,000). Over the last 15 years this ratio has been consistent and the median sale price for both units/apartments and houses/townhouses grew by the same rate.
The proportion of unit/apartment sales over the last 15 years has also remained consistent, at around 25% of total dwelling sales in Perth.
So, what should we make of these findings?
Firstly, they are very general, covering sales and median property values for all the metropolitan area. Variations will occur in local areas and between new and existing property sales.
At a city-wide level the results however show that median unit and apartment values in Perth have historically moved in line with the rest of the market over the longer term.
There are insights for Perth’s infill housing development too.
The market for units and apartments in Perth is steady at around a quarter of total dwelling sales. This equates to around 8000 existing and new units and apartments purchased on an annual basis in today’s market.
Most unit and apartment transactions support Perth’s growing infill housing development sector along with semi-detached dwellings like townhouses and single residential backyard subdivisions.
Achieving Perth’s target of 47% infill development will require a further lift in unit and apartment purchases and/or a greater reliance on the medium-density options of townhouses and backyard subdivisions.
If you are interested in interstate comparisons, the market share of unit and apartment sales in Sydney is 45% of total sales.
(1) Australian Bureau of Statistics Property Price Index (Cat. 6416.0)
Disclaimer: The views expressed in this article are exclusively those of the author. The article is for general information only and should not be taken as professional advice for personal use. You should consider professional advice from a financial adviser for specific personal needs.