The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
In Melbourne, the dream of owning a standalone house is slipping away for many potential buyers.
The disparity between house and unit values has become increasingly pronounced, making detached homes a distant goal for many.
According to data from CoreLogic, as of December 2024, typical Melbourne houses cost buyers 51.1%-or $310,202-more than units.
This gap has widened significantly over the years. Back in December 2014, the price difference was $121,322, a figure more than doubled today. Looking even further back to December 2004, the disparity was only $47,976, illustrating how housing affordability has shifted over time.
A similar trend is observed across various capital cities in Australia. Using PropTrack data, it's clear that since 2010, house prices in these cities have surged by around 123%, whereas units have only risen by 64%.
Tim Lawless, CoreLogic's head of research, explained that this growing gap implies that purchasing a unit no longer automatically leads to an eventual upgrade to a detached home. He stated, “Buying a unit probably used to be a bit of a stepping stone. You buy into the apartment sector and then hope to eventually upgrade into a larger, detached home, but with such a big price difference, and the fact that it’s probably been a lot harder for unit owners to accrue equity, that upgrading step is a lot more challenging now.”
Brendan Coates from the Grattan Institute observes this from a land value perspective: “Land is scarce, and therefore it’s valuable, so if you want to have that backyard, you are going to pay a premium for it. Not everyone can have a freestanding house, and that means there’s more competition for the limited number of freestanding homes that exist.”
The outlook is that the chasm between unit and house prices will continue to grow as cities expand and population numbers soar. The Urban Taskforce has projected dramatic changes, specifically noting that the share of detached houses in Sydney may decline to only 25% by 2057.
This transformation will echo across Australia’s capital cities as challenges associated with housing density and population growth come to the fore. Increased migration rates continue to exert upward pressure on property prices and rental costs, pushing affordable housing further out of reach for many urban dwellers.
The availability of detached houses is dwindling, resulting in soaring prices and fewer households having the luxury of a backyard, altering the property landscape of Australian cities.
Such developments suggest that future homeowners and city planners alike must adapt to changing trends in housing affordability and preferences, considering alternative living arrangements or innovative urban planning solutions.
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
In the first quarter of 2026, Australians borrowed a record $5.1 billion in new personal loans, according to the Australian Bureau of Statistics. This significant increase reflects the mounting financial pressures many individuals are experiencing due to rising living costs. - read more
In its June 2026 meeting, the Reserve Bank of Australia (RBA) unanimously decided to keep the cash rate steady at 4.35%. This decision reflects the central bank's cautious approach amid ongoing economic uncertainties. - read more
Fintech lender MONEYME has successfully executed a $365.4 million personal loan asset-backed securities (ABS) transaction through the MME PL ABS 2026-1 Trust. This marks the company's largest ABS transaction to date and its third public capital markets transaction for the financial year, bringing total ABS issuance to over $1 billion. - read more
Before considering a loan application, it's crucial to have a clear understanding of your current financial position. Start by noting down all sources of income, including salary, any additional earnings, or government benefits. This will give you a comprehensive view of your financial inflows. - read more
Pre-approval loans are a preliminary step in the loan approval process. They provide borrowers with a conditional commitment from a lender, indicating the maximum amount they are willing to lend, based on the borrower’s financial situation. - read more
Maintaining a good credit score is crucial for financial health. In Australia, a solid credit score can unlock better interest rates, higher credit limits, and improve your chances of loan approval. - read more
Need Help Finding a Loan?
Find out now if you qualify and compare
rates, offers and options from multiple lenders - without a credit check!
All finance quotes are provided free (via our secure server) and without obligation. We respect
your
privacy.
Knowledgebase
Closing Costs: The expenses over and above the price of the property incurred by buyers and sellers when transferring ownership of a property.
No comments yet. Be the first to share your thoughts.