A question sometimes asked in property investing is:
Have houses outperformed units over the long term?
To answer that question, we analysed 25 years of median house and unit price growth across Australia's 8 capital cities.
The results were clear.
Across almost every capital city, houses delivered stronger long-term capital growth than units.
Key Findings
• Sydney houses significantly outperformed Sydney units over the 25-year period.
• Melbourne followed a similar trend, with houses maintaining a clear growth premium.
• Brisbane, Adelaide and Perth were among the strongest performers for house price growth, benefiting from affordability, population growth and land scarcity.
• Hobart delivered one of Australia's most remarkable growth stories, with both houses and units experiencing substantial appreciation.
• Canberra produced consistent growth across both asset classes, while Darwin remained the most cyclical market.
The broader trend was simple:
* Houses generally delivered higher capital growth.
* Units generally provided a lower entry price point and, in many cases, stronger rental yields.
This reinforces an important property investment principle:
The best asset is not always the one that grows the fastest.
The best asset is the one that aligns with your investment objectives, borrowing capacity, cash flow requirements and long-term strategy.
