The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
In Melbourne, the dream of owning a standalone house is slipping away for many potential buyers.
The disparity between house and unit values has become increasingly pronounced, making detached homes a distant goal for many.
According to data from CoreLogic, as of December 2024, typical Melbourne houses cost buyers 51.1%-or $310,202-more than units.
This gap has widened significantly over the years. Back in December 2014, the price difference was $121,322, a figure more than doubled today. Looking even further back to December 2004, the disparity was only $47,976, illustrating how housing affordability has shifted over time.
A similar trend is observed across various capital cities in Australia. Using PropTrack data, it's clear that since 2010, house prices in these cities have surged by around 123%, whereas units have only risen by 64%.
Tim Lawless, CoreLogic's head of research, explained that this growing gap implies that purchasing a unit no longer automatically leads to an eventual upgrade to a detached home. He stated, “Buying a unit probably used to be a bit of a stepping stone. You buy into the apartment sector and then hope to eventually upgrade into a larger, detached home, but with such a big price difference, and the fact that it’s probably been a lot harder for unit owners to accrue equity, that upgrading step is a lot more challenging now.”
Brendan Coates from the Grattan Institute observes this from a land value perspective: “Land is scarce, and therefore it’s valuable, so if you want to have that backyard, you are going to pay a premium for it. Not everyone can have a freestanding house, and that means there’s more competition for the limited number of freestanding homes that exist.”
The outlook is that the chasm between unit and house prices will continue to grow as cities expand and population numbers soar. The Urban Taskforce has projected dramatic changes, specifically noting that the share of detached houses in Sydney may decline to only 25% by 2057.
This transformation will echo across Australia’s capital cities as challenges associated with housing density and population growth come to the fore. Increased migration rates continue to exert upward pressure on property prices and rental costs, pushing affordable housing further out of reach for many urban dwellers.
The availability of detached houses is dwindling, resulting in soaring prices and fewer households having the luxury of a backyard, altering the property landscape of Australian cities.
Such developments suggest that future homeowners and city planners alike must adapt to changing trends in housing affordability and preferences, considering alternative living arrangements or innovative urban planning solutions.
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
In a landmark decision, the Federal Court has imposed a total of $7 million in fines on Cigno Australia and BSF Solutions, along with their respective directors, for operating an illegal payday lending scheme that contravened Australian credit laws. This ruling underscores the Australian Securities and Investments Commission's (ASIC) commitment to safeguarding consumers from predatory financial practices. - read more
Data from digital non-bank lender OnDeck reveals a significant uptick in loan applications from Australian small and medium-sized enterprises (SMEs) during the December quarter of 2025. Notably, 34% of these applications were aimed at funding business expansion, indicating a shift from survival-focused borrowing to growth-oriented investments. - read more
AMP Bank has re-entered the self-managed super fund (SMSF) lending market with the launch of SuperEdge, a residential property lending solution tailored for SMSF trustees. This move addresses the growing demand among Australians seeking greater control and flexibility in their retirement planning. - read more
The Reserve Bank of Australia (RBA) has highlighted significant risks to the nation's economic stability, citing the prolonged conflict in the Middle East and potential downgrades in artificial intelligence (AI) profitability as primary concerns. These factors contribute to an environment where economic risks are both high and escalating. - read more
Grow Inc, the administration provider for HESTA, one of Australia's largest superannuation funds, is experiencing significant financial difficulties. Recent financial reports reveal that Grow Inc's liabilities nearly double its assets, raising questions about its long-term viability and the potential impact on HESTA's member services. - read more
Debt management involves strategies and practices designed to help individuals control their debt and maintain a healthy financial standing. It includes everything from budgeting and tracking expenses to negotiating better terms with creditors and consolidating debts for easier repayment. - read more
Understanding your borrowing power is an essential step for anyone looking to take out a loan. This concept represents the amount of money you're eligible to borrow from a lender, whether it’s for purchasing a home, a car, or investing in your future. Knowing your borrowing power not only sets realistic expectations but also guides you in financial planning and budgeting for your loan repayments. - read more
Securing a loan can be pivotal for turning your aspirations into reality, whether it's buying your first home or funding a new business venture. Understanding loan eligibility is crucial in this process, as it determines the feasibility of receiving the necessary funds. It's not just about meeting the lender's criteria but also about ensuring that you are genuinely prepared to manage the financial commitment. - read more
Credit scores play a crucial role in the financial journey of any individual, especially in Australia where they serve as a snapshot of your financial reliability. This numerical expression based on a level analysis of a person's credit files has a far-reaching impact on various aspects of financial borrowings. - read more
Smart borrowing is crucial for individuals and businesses in Australia to manage their financial goals effectively. With a well thought-out borrowing strategy, you can optimize your finances, minimize costs, and achieve your financial objectives. - read more
Need Help Finding a Loan?
Find out now if you qualify and
compare rates, offers and options from multiple lenders - without a credit check!
All finance quotes are provided free (via our secure server) and without
obligation. We respect your
privacy.
Knowledgebase
Index Fund: A type of mutual fund designed to replicate the performance of a specific market index, such as the S&P 500.
