Unit demand is heating up across Sydney, and with limited supply, prices could be set to soar. For many buyers, units are now the go-to choice to stay close to their dream neighbourhoods without breaking the bank.
In the last five years, unit searches jumped by 94.3%, yet new listings only saw a modest 7.5% boost.
Why the shift? House prices have rocketed by 53.6% while units increased by just 15.1%—a huge gap that’s reshaping buyer priorities. Downsizers are also fueling demand for apartments, especially as Sydney’s 65+ age group is expected to double in the next 40 years.
And with fewer apartment projects in the pipeline due to high costs, developers like Luke Berry predict sharp price hikes as soon as interest rates ease. According to Rich Harvey of Propertybuyer, higher rates will likely keep buyers focused on affordable options like units and townhouses for years to come.
Nicola Powell, Domain’s chief of research, adds, “Townhouses serve as a middle ground between houses and units, making them an appealing option to a broad buyer pool,” she said. “While Australians generally prefer houses, townhouses present a unique opportunity by appealing to buyers across various locations without the usual geographic bias, making them a strong alternative.”
Townhouses are the sweet spot—offering a bit more room without the high house prices—making them popular in both city and suburban areas.
