Units are proving a better property investment than houses, with unit prices growing 1.1% more than house prices annually for the past five years.
Property researcher RP Data shows that while capital city unit prices grew by an annual average return of 2.9 per cent over the five years to December 31 last year, house prices grew by only 1.8 per cent.
Cameron Kusher, RP Data senior research analyst, said over the very long term house prices had actually outperformed units, but the reversal in the trend over the past five years is explained by a number of factors.
‘‘Affordability is a key factor, particularly in a market like Sydney where the median house price is about $165,000 more expensive than the median unit price,’’ Mr Kusher said. ‘‘Many people still aspire to live in a detached home but the reality for many is that units are a better option.’’