As prices continue to edge higher and housing demand remains resilient across both capital cities and regional areas, apartment owners looking to make the leap to a house may find their best opportunities in suburbs where the price gap between units and houses is surprisingly narrow.
The latest PropTrack data revealed that while the national median house price sits at $872,000 and units at $656,000—a gap of $216,000—some suburbs show a much narrower divide.
In Australia’s capital cities, that gap rises to $307,000, but in regional areas it drops to $112,000.
In Sydney, the country’s most expensive housing market, buyers typically pay a staggering $620,000 more for a house than a unit. But in a few standout suburbs across the country, that premium is far lower—sometimes as little as $20,000, PropTrack reported.
In Melbourne, where the typical house costs $312,000 more than a unit, several outer suburbs buck the trend.
In these areas, the smaller gap is attributed to units that often resemble houses—mostly villas and townhouses with substantial proportions and newer construction.
In Mandurah, south of Perth, houses cost $90,250 more than units. The proximity of many units to the waterfront elevates their value, while houses are more spread out. Nearby Greenfields has a slightly wider gap of $96,000.
In Brisbane, the most affordable upsizing suburbs include:
Over in Adelaide, top suburbs for minimal price differences are Morphett Vale ($125,000), Mount Barker ($150,000), and Modbury ($165,250).
According to Anne Flaherty (pictured), REA Group senior economist, many of the suburbs with narrow gaps have seen significant development of villas, townhouses, and apartments near older detached homes.
“It might be an older house competing against a newer unit,” Flaherty said.
“Even though the apartment or townhouse might have less square metres overall, if it’s a fresh, new property that’s very modern inside, a buyer might be willing to pay a relatively close price compared to a house.”
Although most Greater Sydney suburbs see a $1 million+ difference between unit and house prices, a few offer more affordable pathways to upsizing:
“There’s a really high demand for villas and townhouses from families, young professionals, couples, and single parents,” said Trent Mullens, real estate agent at Gittoes East Gosford.
“We get a lot of downsizers [who] are selling the family home for a good price and then downsizing into a townhouse or a villa which they're spending good money on.”
Only nine Sydney suburbs have price gaps below $300,000, primarily located in the western suburbs or Central Coast. Suburbs like The Entrance ($277,500), Umina Beach ($260,000), and Ettalong Beach ($300,000) are among them.
“We know a water view adds to the value of a property so you're much more likely to see units in those waterfront areas where land costs are very high,” Flaherty said.
In regional Australia, some towns present the most affordable opportunities for upgrading:
These areas benefit from either geographically dispersed housing or units located near sought-after waterfronts, which narrows the value gap.
The biggest gaps between unit and house prices are concentrated in Australia’s most affluent suburbs:
Even Toorak, Melbourne’s most prestigious suburb, has a median unit price of $835,000—but buyers must pay nearly $3.9m more to secure a house.
Outside capitals, wide gaps are found in lifestyle regions such as:
Flaherty explained the price disparity.
“In a much more affordable area where land values are cheaper, a higher proportion of the overall property price would be the actual dwelling itself,” she said.
“Land values were much higher in Australia’s priciest suburbs, meaning a house would command a huge premium.”
