House prices across Australia boomed in 2020 and 2021, pushing the gap between house and apartment prices to an all-time high. However, the most recent figures for the June quarter are showing that house prices are coming off the boil on the back of three consecutive interest rate rises.
Apartment prices are likely to hold up better in any market downturn, because they didn’t rise as sharply during the boom. Let’s dive into the figures.
The gap between house and apartment prices
Nationally, the gap between average house and apartment prices is just over 28%. Average house prices have risen by nearly 25% over the past year, while units have risen by just under 15%. The slower growth rate for apartment prices has contributed to the record gap.
As more Australians find house prices beyond them, the cheaper apartment market becomes more attractive. This should help apartments to maintain the demand for apartments in the short to medium term.
What’s happening in Newcastle, Lake Macquarie and Maitland?
According to the most recent figures, the gap between house and apartment prices is even higher. The median price for a house in Newcastle is $1.4 million and the median price for an apartment is $825,000 (a 41% difference).
You can keep up to date with the latest Newcastle market prices here.
In Lake Macquarie, the median house price is $820,000 and the median apartment price is $575,000 (a gap of nearly 30%).
You can keep up to date with the latest Lake Macquarie market prices here.
In Maitland, the median house price is $616,000 and the median apartment price is $432,500 (a gap of nearly 30%).
You can keep up to date with the latest Maitland market prices here.
The pros and cons of buying an apartment
There are pros and cons of buying an apartment. Let’s look at the pros first.
- They are usually cheaper.
- You don’t have to maintain a yard.
- Not having a yard means apartments aren’t as suitable for kids and dogs as houses with decent-sized yards.
- You have to pay regular strata/body corporate fees for building repairs and maintenance.
- You are living in a building with others and must abide by all strata/body corporate regulations.
How we can help
If you’re looking to join the growing number of Australians buying a residential or investment property in Newcastle, Lake Macquarie or Maitland, talk to us. Our licensed and experienced brokers at Wisebuy Investment Group can help you to find the right loan. We can also help you if you’re looking to refinance your existing property loan.
We’ll take the time to find out your individual needs before matching you with a suitable lender. We work with more than 60 lenders in the Australian market, and we can help you with your loan application. Importantly, we work for property buyers, not lenders.
Contact us today for an obligation-free chat to find out more. We’d be happy to answer any questions you have and to explore your finance options with you.