PHOTO: The dream of upgrading from an apartment to a house has been getting more out of reach over the years. (Source: Getty)
The reality of just how out of reach the ‘Australian dream’ is has been laid bare in a new report that reveals the stark divide between apartment and house values.
In some of Australia’s ritziest suburbs, unit prices are little over a fifth of house prices in the same neighbourhood, according to a new report by CoreLogic.
Perth’s Mosman Park takes the crown for having the greatest difference between unit and house prices: apartments in this area cost around $384,632, which is just 21.4 per cent of the median price of houses nearby at $1,797,852.
In second place is Sydney’s suburb of Strathfield, where the median unit price ($662,094) is just 23 per cent of the cost of houses at $2,876,380.
In Melbourne’s Stonnington, unit prices ($652,686) are a quarter (25.9 per cent) of house values in the same area, at $2,518,739.
Meanwhile, property buyers in Adelaide’s Walkerville will be forking out less than a third (30.6 per cent) for a unit compared to what they would pay for a house.
CoreLogic’s latest research comes as Australia’s property market breaks new records, with its total value now at $9.1 trillion (greater than GDP, the ASX and superannuation combined) – despite not being near ‘bubble’ territory.
According to CoreLogic head of research Eliza Owen, housing affordability has worsened over the years, with unit values now making up a lower proportion of house values in nearly every Australian capital city compared to 2016.
“The analysis … could see the biggest challenge for apartment owners looking to upgrade to houses in the same area,” Owen said.
Other factors at play include the premium value of standalone houses in covetable locations, particularly suburbs near the CBD, she added.
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