Traditionally, houses have outperformed units in capital growth, but Melbourne’s market is seeing a shift.
Springvale recorded a 31% increase in median unit prices over the past year, rising from $452,250 to $600,000, making it the city’s best-performing unit market.
Preston and Box Hill North followed closely, with 25.2% and 20.2% growth, respectively. In contrast, some suburbs saw sharp declines—Chadstone’s unit prices dropped 33.3%, while Burwood and Sunshine also recorded significant losses.
Overall, Melbourne’s unit market outperformed houses in quarterly growth in December, with a 2.1% rise compared to 1.6% for houses.
Key drivers of unit price growth include affordability, demand from first-home buyers and downsizers, and limited supply.
In Springvale, three-bedroom, single-dwelling units with no strata fees are particularly sought after, often fetching prices exceeding those of houses.
In Preston, improved infrastructure and proximity to Northcote and Thornbury have drawn buyers seeking value for money, while Box Hill North’s limited unit supply has contributed to strong price growth.
With affordability pressures and changing buyer preferences, the unit market is becoming an increasingly attractive option.
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