Unit prices have soared as much as 30% in some suburbs over the past year as buyers seek out more affordable options in the capital cities.
According to PropTrack's January Home Price Index, unit prices rose 4.3% over the past 12 months, with the more stable interest rate environment driving prices higher in most capital cities.
Capital cities have seen slightly more growth than regional areas. Prices of units are 4.5% and 4% higher respectively compared to January 2023.
This growth can be mainly attributed to the period from mid to late 2023, during which the decline brought about by ten consecutive rate hikes was recovered and prices hit new peaks.
In certain areas, annual price increases were even greater than what was seen at a national and combined capital city level.
| Suburb | Capital city | Median sale price | 12 month growth |
| Telopea | Sydney | $819,000 | 27.5% |
| Annadale | Sydney | $1,228,000 | 24.1% |
| Earlwood | Sydney | $975,000 | 22.8% |
| Sunshine | Melbourne | $505,000 | 28.0% |
| Kew East | Melbourne | $1,070,000 | 20.4% |
| Bentley | Melbourne | $763,000 | 19.2% |
| Raceview | Brisbane | $470,000 | 31.6% |
| Mount Warren Park | Brisbane | $333,000 | 30.5% |
| Brassall | Brisbane | $400,000 | 27.0% |
| Christies Beach | Adelaide | $522,000 | 31.3% |
| Modbury | Adelaide | $480,000 | 29.7% |
| Payneham | Adelaide | $465,000 | 23.2% |
| Ellenbrook | Perth | $405,000 | 31.3% |
| Erskine | Perth | $422,000 | 27.9% |
| Maddington | Perth | $357,000 | 23.5% |
In Sydney, units in Telopea, Annandale and Earlwood saw their median prices rise most. Compared to January 2023, they were 27.5%, 24.1% and 22.8% higher respectively.
Sunshine, Kew East and Bentley units had the largest growth in median prices among all Melbourne suburbs.
Brisbane suburbs Raceview and Mount Warren Park experienced the biggest increase in unit prices in their city. Prices are almost a third more compared to a year prior.
Christies Beach took the top spot in Adelaide with unit medians up more than 31% annually, while in Perth, median unit prices in Ellenbrook, Erskine and Maddington rose most.
The level of price growth in these suburbs reflects their popularity among buyers.
A key driver of their appeal is that a large proportion of them have median prices below the national of $600,000.
With the worst housing affordability in three decades, buyers are hunting for homes in more affordable suburbs.
While prices saw some reasonably strong growth during the latter half of 2023, they have started to slow, in the new year.
Prices are expected to continue rising due to more stable interest rates, strong population growth and the ongoing new home shortfalls, albeit at a slower pace than last year.
