The Perth housing market has been gradually trending higher over the past 18 months and it now appears the unit market is also gaining momentum.
According to the latest data from the Real Estate Institute of Western Australia (REIWA), there are 19 suburbs across Perth where unit prices have outperformed freestanding houses.
Some of the locations have seen unit growth three or four times that of houses.
The strongest suburb in Perth for unit price growth in comparison to houses has been Joondalup in the city’s north.
Unit prices in that suburb have grown 31.8 per cent in the past 12 months, which is four times higher than houses.
Maylands and Rockingham have also seen year-on-year growth of 32 per cent and 34.5 per cent respectively, which is three times higher than houses.
The blue-chip suburb of Mosman Park has seen the highest annual growth in unit prices, with a 39.3 per cent increase in the median sales price, however, house prices have also steadily increased by 16.1 per cent.
REIWA President Damian Collins said he was please units were showing strong buyer demand again.
“Unit prices were especially impacted during the market downturn, falling 17 per cent since their peak compared to house prices, which fell 13 per cent, he said.
“Typically, it takes a longer time for the unit market to catch up to houses when prices rebound, however, these 19 suburbs are bucking the trend and seeing unit prices grow at a stronger rate than houses.
“Competitive market conditions have been a driving factor of the strong unit price growth in these suburbs, with many buyers broadening their search to include units.”
Despite their rising price tags Mr Collins said buyers were attracted to units as they provided a cheaper option in highly-sought areas.
“In addition, many people are opting for units as a more affordable lock and leave option, getting them into affluent suburbs like Mosman Park where the median house price is nearly four times more than the median unit price,” he said.
Mr Collins believes that the entire Perth housing market is currently strong and expects that trend to continue into 2022.
“It’s pleasing to see such steady growth across the Perth unit market, and we don’t see this slowing down any time soon,” he said.
“With continued buyer demand and low available stock, more buyers may turn to units as an alternative entry into the WA property market.
“As unit prices continue to recover, we should see the gap created by the previous downturn narrow, with growth likely to continue into 2022.”