Syd/Mel suburbs with largest house/unit price gaps

Came across these articles:
Sydney suburbs with the largest gap between house and unit median prices

The Melbourne suburbs with the largest price gap between houses and units

Potential opportunities for those interested in units? Several of those suburbs in Sydney have apartments that are $1.2m+ though....

 

Yes I like the idea of this. @John_BridgeToBricks talks about it in this vid:



Sounds like a smart strat.

 

Yep, the house to unit spread is the biggest it has ever been I have heard.

 

They thing about the Unit vs House debates is that once those Units goes over $1M+, people would think I can use that money to buy a house further away.

I was investigating to buy a unit in Sydney but end up looking to buy a house at outer Sydney or interstate cities instead.

 

True, but by that time the houses further away will be more expensive too. Ratios are important because it speaks to relative affordability rather than absolute affordability.

 

Yes I think it's still a relatively short term problem. Units will always be attractive in Sydney for various reasons and now is quite possibly the best time to buy them based on a medium-long term hold. Once immigration starts again and the universities open back up to international students it'll put the pressure back on. There are some good deals out there in the unit market.

- Andrew

 

Yes the gap is horrendous, hence why NSW planning has relaxed the restrictions on low to medium density housing to bridge that gap.

 

IMO investors should snap a bargain in boutique units closer to city with good land value say 10-20 units (no high rise please) in fantastic locations as the spread is too high.

 

Yep, I am thinking of similar strategy. However on some days my dislike of strata outweighs my dislike of land tax.....

 

Do you have more info on that please?

 

https://www.planning.nsw.gov.au/Pol...sity-Code/The-Low-Rise-Housing-Diversity-Code

 

Is anyone seeing movement yet on townhouses and 3 bedroom villas/courtyard units (families who are priced out may move onto these)?

 

Apparently a 3br townhouse sold in Marsfield for 1.3xmill on the weekend and that sales price was unexpected. So I’d say they are moving up.

 

Thank you Gockie, this looks like one. Bought in 2008 for $565K.

 

Buying property is about trade offs, and when option A becomes expensive, option B becomes more attractive.

We think of the obvious trade offs: units vs houses.

But there are infinitely more choices than this.

Three bedroom units compete with townhouses
Townhouses compete with houses
1 bedroom units compete with studios
1 bedroom units compete with 2 bedroom units
2 bedroom units compete with 3 bedroom untits.
Split level apartments compete with houses.
And so on.

The point is, that once an option becomes expensive, demand for the alternative kicks in.

Right now, three bedroom units are actually out of favour. But they will come back once townhouses become too expensive.

This post kinda states the obvious now that I re-read it. But useful to think in terms of tradeoffs rather than absolutes, and relative value, rather than absolute cost.

 

Boutique inner city apartments will always fetch a premium, they won't come at a bargain now just because apartments are supposedly going cheap.

Apartment price stats are down because they have been dragged down by the ultra modern high rises that have lost their international market.

 

Are we underestimating the impacts of Wfh?