The gap between house and unit prices has narrowed in most capital cities since the RBA started raising interest rates in May, as buyers turn to high density amid worsening affordability, data from CoreLogic shows.over units shrunk by 2.2 percentage points to 67 per cent in July, reflecting the faster and deeper deterioration in detached housing values.Between May and July, Sydney house prices dropped by 5.3 per cent, while units fell by 3.1 per cent.
The price difference between Brisbane houses and units dropped by 2.4 percentage points to 75.3 per cent, while Adelaide fell by 2.2 percentage points to 63 per cent.Canberra posted the sharpest drop in the house premium over units, falling by 5 percentage points to 67 per cent. Houses are worth $421,784 more than units, less than the $479,966 recorded in May.
“Units are relatively more affordable and attract strong investor activity, meaning value changes across the medium- to high-density sector are proving to be less volatile than the house segment. The outlook for the market remained pessimistic, Ms Ezzy said, “with interest rates expected to rise throughout the second half of the year and into 2023, and a surge in fresh listings likely to add further downward pressure on values as we approach the spring selling season”.
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