Villas, flats and townhouses shine in unit market

Villas, flats and townhouses are the top performers in the Perth unit market according to the latest data from REIWA.  

CEO Cath Hart said the overall median sale price for units was rising, but growth wasn’t uniform across the various segments of the unit market. 

“When we break down the figures we can see which segments have the most growth, which reflects buyer demand,” she said. 

“Villas were the top performers for price growth, closely followed by flats and then townhouses.

“This is understandable, buyers generally prefer houses – we all like our own patch of land - however competition for houses is high. 

“Villas and townhouses are fairly similar to houses. They may not be set on their own block, but they often come with some “land”, usually in the form of private courtyards, and the low-maintenance aspect also appeals to buyers. 

“There is often talk about density in Perth and these stats show buyers are quite willing to embrace medium-density living, we just need to build more of these types of homes and in locations where buyers want to live.” 

Ms Hart said the growth in the median sale price for flats reflected their affordability. 

“Flats are often a great way for first home buyers to enter the market,” she said. 

“They also offer good value for investors.” 

Median sale price 

Unit prices were fairly stable throughout most of 2023 but started to show growth towards the end of the year. 

The overall median unit price rose 3.8 per cent to $415,000 over the year to February 2024. This is 10.7 per cent above the low of $375,000 recorded in August 2020, but still 7.8 per cent lower than the previous high of $450,000 seen in February 2015. 

Within the unit market, villas showed the most growth. Their median sale price rose 10.7 per cent to $420,500 in the 12 months to February and, like median house prices, are currently at their peak. Their previous low was $320,000, which was recorded in August 2020. 

Flats were just behind villas in terms of growth rate, with their median rising 10.2 per cent to $270,000. This remains below their peak of $315,000 set in March 2015, but is 35 per cent higher than the low of $200,000 recorded in July 2020. 

The median sale price for townhouses has increased 5.8 per cent over the past year to $592,500. They too are at their peak. Their previous low was $500,000, which was recorded in October 2020. 

Home units rose 2.8 per cent to reach a median of $370,000 over the 12 months to February 2024. They are still below their peak of $410,000 set in February 2015, but 16.4 per cent above the low of $318,000 recorded in October 2019. 

Apartments saw no median sale price growth in the past year, with their median unchanged at $500,000. This is below their peak of $585,000 set in January 2015, but 3.1 per cent higher than the low of $485,000 recorded in February 2021. 

Median time on market 

Historically units take longer to sell than houses, but the gap has closed in recent months as the demand for housing soars. 

According to www.reiwa.com data, the median time on market for units was nine days in February 2024, compared with 22 days in February 2023. Houses sold in a median of eight days in February and 13 days a year ago. 

“We saw selling times for units accelerate strongly in the second half of 2023,” Ms Hart said. 

“This reflects the strong demand for established housing in general, which is underpinned by near-record population growth, and the low number of completions for new dwellings.” 

Each of the segments in the unit market have seen their days on market decline significantly over the past 12 months. 

Villas were already fairly popular, selling in a median of 15 days a year ago. They recorded a median time on market of seven days this February. This is a huge change from the 55 days recorded in 2019. 

Townhouses sold nearly as quickly as villas, changing hands in a median of eight days in February, 10 days faster than 12 months ago and a massive drop from the median of 53 days set in 2019. 

Home units sold in a median of nine days, down from 24 days last February and well below the median of 70 days on market recorded in 2019. 

Apartments and flats were marginally slower to sell, recording a median of 13 days in February. This was 16 days faster than the 29 days recorded 12 months ago. They took a median of 67 days to sell in 2017 and 2018. 

Ms Hart said under current market conditions, prices in the unit market are likely to continue to rise and the time on market will remain low.