They’re a similar size inside – but less than half the price.

Record gaps between unit and house prices have created Sydney pockets where home seekers can get apartments that closely match local houses in floor area but are as much as 68 per cent cheaper.

Exclusive research by SuburbData revealed the best value unit markets across the city, measured by the average difference in prices between houses and apartments with similar rooms and floor space.

It showed a high concentration of “good value” apartments were on the north shore and in the outer suburbs of the inner west and St George region.

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Sogand Fathy bought a unit in Carrington Place in Castle Hill that was the same size as local houses but about $450,000 cheaper. Picture: Jonathan Ng

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The revelations come as additional ANZ data showed apartment and house values have been on a markedly different trajectory since the Covid pandemic began in 2020.

National house values grew by an average of about 44.5 per cent between March 2020 and October 2024, more than twice the rate of increase in unit prices (20.7 per cent).

The ANZ report showed demand for units was rising as house affordability waned, with apartment price growth now tracking in line with houses.

ANZ economist Madeline Dunk said home buyers and investors were pivoting towards units as an entry point into the property market.

“We have seen demand for houses soften in recent months, with high interest rates, cost of living pressures and elevated home values deterring buyer competition.

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These two properties in Fairlight both had about 110sqm of floor space but the unit sold for $2.7m cheaper.

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“Growth in units is now tracking broadly in line with houses, as less available affordable housing has shifted more demand towards units.”

SuburbData analyst Jeremy Sheppard said home seekers had a window of opportunity to capitalise on the unusually large unit-house price imbalances.

“There’s the potential for buyers to get good value in a location where they want to live but can’t afford a house,” Mr Sheppard said.

He noted that the gaps between unit and house prices were at record highs in some areas, suggesting apartment buyers could get more value than normal.

A common theme among the markets where units were selling for hundreds of thousands of dollars less than similarly-sized houses in the area was a long history of house subdivisions nearby.

Among the biggest savings were on offer for unit buyers in the lower north shore suburb of Crows Nest, SuburbData indicated.

Units were an average of $1.7m cheaper than houses in Crows Nest, or about 33 per cent of the price, and usually came with 100sqm of floorspace and two bedrooms.

A unit in this Crows Nest building recently sold for about $1m less than a house in the area with the same floor space.

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Houses in the area typically had three bedrooms and were on 200sqm blocks. This meant that, after factoring in backyards and driveways, the dwellings themselves were only marginally bigger.

Suburbs where there was a similar equation for unit buyers included Newington, on the fringes of the inner west, and coastal suburbs Neutral Bay, Fairlight and Monterey.

Franky Tjhin, general manager of real estate group Plus Notable, said there was a growing acceptance of apartment living.

“Surging land values have driven the price gap between houses and apartments to a new record,” he said.

“When buyers see this price gap, they think, ‘Why should I buy a house when I can get a same-sized unit for half as much?’

Plus Notable principal Franky Tjhin and sales manager Reza Sedighi with Castle Hill buyers Sogand Fathy and Babak Sarrafpour. Picture: Jonathan Ng

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“The only obstacle used to be that too few of these large, house-like apartments were being built. But, now, that is changing.

“Another factor encouraging people to buy apartments is the state government’s crackdown on construction quality. The iCIRT rating is giving people much more confidence.

“The construction quality of new houses hasn’t gotten the same regulator attention.”

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Sogand Fathy recently bought a unit in Castle Hill development Carrington Place after originally seeking a house and said an apartment purchase made more sense to her in the current climate.

She bought her three bedroom unit for about $450,000 cheaper than similar-sized houses in the area.

“Costs of buying and maintaining a house are too high,” she said.

“The space I have in this new unit is exactly the same as the houses I was looking at. It also has convenient access to the train station just across the road and a shopping centre.

“There are green areas near my unit that I can enjoy … this unit also has a function room. I can have all my parties and gatherings there.

“We can’t afford to buy a new house as large as this apartment. It would have to be an old house that would need lots of renovation. I don’t have the money or time to go through all of that.”

SUBURBS WHERE UNITS OFFER MOST VALUE VS. HOUSES

Source: SuburbData