Australia’s unit market is continuing to outperform the freestanding house segment, according to the latest data from PropTrack, with unit price growth exceeding that of houses nationally and across most capital cities over the 12 months to May 2025.

Brisbane, Adelaide, Perth, and Melbourne all saw stronger relative performance in their unit markets.

While Melbourne experienced value declines in both segments, units still fared better than houses.

This trend reflects ongoing affordability pressures, with buyers increasingly turning to units as a more accessible entry point—particularly in lifestyle-centric locations.

PropTrack economist Anne Flaherty noted that regional unit markets also performed well, with values rising 5.3% year-on-year, compared to 4.5% for houses.

She added that limited new unit supply—driven by elevated development costs and lower price points—is likely contributing to the upward pressure on values.

For mortgage providers, the sustained demand for units presents opportunities to tailor products that support borrowers seeking affordability and long-term capital growth.