As home values continue their upward trend, units, whose values have been rising more slowly, may be the optimum choice for investors and first-time buyers. Low interest rates may be distracting buyers, who are focusing on detached houses and perhaps overlooking the unit market.
Those considering investing in property in Adelaide may want to consider an apartment or flat. Though unit values are currently lower than housing values, they have outpaced housing values in growth over the last five years.
As Australia’s swiftly growing population fuels the prevalent issue of high demand and short supply in the housing market, many developers are choosing to build units to accommodate the influx of active buyers and investors.
According to RP Data, dwelling approvals data serves as evidence of the rising popularity of units, as 66,185 units were approved for construction across the country over the year ending in July 2013. Of all dwelling approvals over the course of the year, unit approvals accounted for an astounding 41.5 per cent.
All signs point to units being the more intelligent and economical choice, especially for those looking for a more affordable price point to enter the market for real estate in Adelaide. Investing in a unit also allows residents to be more centrally located, and offers a better rental return.