In last week’s Property Pulse it was investigated how close to the city you could find suburbs where the median house value was under $500,000, this week the report looks at the results for units. Note that distances quoted are measured in a straight line and the distances by road may be much different. The results highlight that housing options under $500,000 are available much closer to the CBD for units compared with houses. This likely also goes some way to explaining why in Sydney and Melbourne, where house values are falling, the more affordable unit market is holding up better.
Suburbs closest to a capital city GPO with a
median unit value of less than $500,000
Lakemba is the suburb closest to the city centre with a median unit value below $500,000. Located just over 12km from the city centre, the median value is $435,314. Compared to other capital cities, unit values below $500,000 are typically much further away from the city centre.
The Melbourne CBD has a median unit value below $500,000 and most of the suburbs surrounding the CBD also offer units which are typically valued below $500,000. Compare this to the detached housing market where the suburb closest to the city with a median below $500,000 was 16km away.
Most suburbs in Greater Brisbane have a median unit value below $500,000. Even within the CBD and surrounds median unit values generally sit below $500,000 offering a much more affordable alternative, particularly in the inner city to houses.
Units are much more affordable than houses throughout the city. In fact, throughout the whole city there are only five suburbs in which median unit values are in excess of $500,000.
While most of the suburbs surrounding Perth’s CBD have a median unit value below $500,000 there remains many suburbs with a median value of more than $500,000. These suburbs are typically along the coast or along the Swan River in some of the more exclusive enclaves.
With a citywide median unit value well below $500,000 most of the suburbs across Hobart have a median value below $500,000. In fact, across the whole city only 3 suburbs have a median unit value of more than $500,000.
Only one suburb in all of Greater Darwin has a median unit value of more than $500,000. As a result, the supply of relatively affordable unit stock is significant, particularly when compared to houses below $500,000.
While there was only 1 suburb with a median house value below $500,000 there are substantially more suburbs with a median unit value below $500,000. Many of these suburbs are also quite close to the city centre resulting in a cheaper and more viable housing alternative in these areas.