Apartment price growth outpaces houses across Australia

Apartment markets have outperformed houses in price growth across multiple Australian regions, with 62.9 per cent of apartment markets recording higher or equal median price growth compared to houses in the 12 months to May 2025.

The analysis of Australia’s capital city local government areas by Nuestar and Hotspotting reveals a significant shift in the real estate market.

Brisbane leads the charge with 76.3 per cent of its apartment markets showing stronger growth than houses over the year.

Perth follows closely with 75 per cent of its apartment markets outperforming houses, driven by affordability and rising demand.

Sydney’s apartment market is also thriving, with 71.4 per cent of its apartment markets surpassing house price growth.

Nuestar Founder and Director of Property Michael Wilkins said the changing landscape of property markets is increasingly challenging old paradigms of real estate.

“The common view is that the real money is in land, not apartments. However, that’s not our experience,” Mr Wilkins said.

“With lifestyle benefits, lower costs, and outstanding locations, apartments are fast becoming the preferred choice for both homeowners and investors.”

“Prices per square metre are continuing to rise, and developers are recognising that quality design, premium inclusions, and integrated amenity are increasingly the key to market appeal.”

Mr Wilkins said Perth’s rising house prices mean more buyers are turning to its more affordable apartment market.

“While the Perth apartment market is smaller, rising house prices mean even more buyers are turning to its more affordable apartment market, with 75 per cent recording higher apartment price growth than house price growth in the past 12 months,” he said.

“We continue to deliver strong results in apartment projects in locations grounded in solid fundamentals: population growth, employment hubs, infrastructure, and transport.”

“We’ve also seen excellent performance in areas undergoing demographic change and regeneration.”

Hotspotting Director Terry Ryder said the trend extends beyond individual cities, with national apartment sales reaching 154,928 in the past year.

“The demand for apartments is expected to continue rising, driven by affordability, lifestyle preferences, and investment opportunities,” Mr Ryder said.

“Brisbane’s inner-city market, in particular, is benefiting from major infrastructure projects and the upcoming 2032 Olympics, which is further fuelling growth.”

Mr Wilkins highlighted Perth suburbs as examples of strong apartment performance, citing a Como project with river frontage, views, public transport and easy CBD access.

“The median apartment price in Como increased 27 per cent in the past 12 months, compared to 21 per cent for houses, and the yields are significantly higher,” he said.

“In another inner Perth suburb, Maylands, houses have increased 16 per cent but units are up 21 per cent with 6.5 per cent yields, compared to 3.9 per cent for houses.”

Mr Ryder said apartment price growth will continue to outpace houses in key locations throughout 2025, with vacancy rates at historic lows and rental demand surging.

“The once dominant paradigm of real estate – that houses on land showed superior capital growth to apartments – is simply no longer the case,” he said.