House or unit? Here’s where you’re better off buying one over the other

A new report has revealed the suburbs where you can live the lifestyle for less and save big by buying a unit over a house, and those where the price gap is so close you could be better off saving for the house and land.

New Ray White data shows Toorak Gardens has the greatest difference between median house and unit prices.

The median house price is $1.879m, whereas the median unit house is $717,855 – a difference of 61.8 per cent or a whopping $1.1615m.

Walkerville wasn’t far behind, dollar-wise, though was ahead on percentage.

Toorak Gardens from the air. Supplied

The price difference between its median house price – $1.59m – and its median unit price – $604,745 – is $985,876, or 61.98 per cent.

Belle Property Unley real estate agent Thomas Krajnc, who has sold 11 apartments in Walkerville’s The Watson complex over the past 12 months, and has another three under contract in there and another for sale – apartment 325 – said it offered a fantastic lifestyle for far less than the cost of a house.

“If you look at median value of a unit, you’re saving yourself about a million dollars, but you still get to live along Walkerville Tce ten minutes from the city, you’ve got buses, parks and good schooling – so in terms of lifestyle versus cost ratio, you’re saving a lifetime of fortune,” he said.

Belle Property Unley real estate agent Thomas Krajnc in The Watson at Walkerville. Picture: Brett Hartwig.

“When you look at The Watson, you’ve got a pool, a gym, a cafe, there are outdoor areas, a reception desk and unit offerings for every type of buyer – you’re buying into a resort.

“Some of the residents here are buying and then upsizing within the same complex, waiting up to a year for a suitable property to come up.”

At the other end of the spectrum, the report also shone a light on the suburbs where buyers could buy a house for not much more than the price of a unit.

And in SA, that’s Port Augusta, where the median house price of $278,084 is just 12.47 per cent or $34,682 more than the median unit price of $243,402.

Port Augusta’s foreshore. Pic: Supplied

Seaford Rise – Moana offers the smallest gap between houses and units, with a difference of 18.97 per cent, or $156,470.

The median house price in this area is $824,760 and the unit price is $668,290.

Ray White chief economist Nerida Conisbee said units offered an affordable alternative to houses.

“Obviously it’s getting harder and harder to buy a house in highly desirable inner suburbs and, for sure, people have been priced out and probably have been priced out for a long time,” she said.

Ray White chief economist Nerida Conisbee

“If you’ve got $750,000, you can probably buy a unit in most desirable suburbs in Australia, maybe not Sydney, but certainly in all other capital cities.

“Alternatively, you can also buy a house for that money on the urban fringe, which I think is a trade off that people make.”

Ms Conisbee adds that as houses became more expensive, more buyers needed to embrace apartment living.

“Australia is slowly becoming more like the rest of the world,” she said.

“If you look at most major cities around the world, people don’t really own houses or are less likely to own a house. In fact, they are less likely to live in a house compared to an apartment.”

– with Lydia Kellner

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