Houses And Units Engage In A Keen Tussle

There is something really nice going for the unit apartments but for the moment they will have to contend with the fact that detached houses have outperformed them. Data furnished by the Property Pulse (RP Data) exhibits that detached houses have grown in value by 8.2% in comparison to units’ value growth of 5.9% (over 12 months to October 2013). An article on the website Real Estate Business observes the occurrences.

Detached houses have a big asset on their side- the value of underlying land, something which is clearly not the case with units. This being said, five-year figures in recent past have shown a keen tussle between the two types of dwellings.

In fact, the statistics pertaining to growth in values for November 2008-November 2013 suggests that units (4.0% p.a) had outstripped detached houses (3.7% p.a) by 0.3%. Having said this, it merits a mention that detached houses had outperformed units in both the previous five year phases; 1998-2003 and 2003-2008.

In coming times, units may become more prominent, especially as affordability becomes a big question mark for detached houses and CBD-centric urban living becomes more desirable.

You can read the original article here.

Do you think changes to the strata by laws may affect older units?