House vs unit: Adelaide prices force change in buyer choices – realestate.com.au

Potential buyers who once never had to consider buying units or apartments because Adelaide homes were so affordable now have no other choice.

But many units and apartments are much more spacious and modern than before, making them attractive, especially for those looking for a low-maintenance lifestyle.

The latest PropTrack data shows Adelaide’s average unit price was $327,500 a decade ago – much cheaper than the $600,000 it is today.

Compared to home prices, which have risen from an average of $422,500 a decade ago to $864,250 today, they are much more affordable.

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Ray White Adelaide City director Andrew Downing.

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Ray White Adelaide City director Andrew Downing said houses had long been the most sought-after property type in Adelaide, but that was starting to change.

“Ten years ago, most people looked at them for renting for kids, for students — a lot of the apartment market was student-driven,” he said.

“But many first-home buyers are now buying apartments.

“First home buyers can only now really buy apartments because they have been priced out of the market.

“Many downsizers now also buy apartments, but ten years ago I would sell very few to them.”

Mr Downing said newer developments with high-end finishes and luxury features had changed the landscape of unit and apartment living.

The Covid pandemic was a catalyst for that change, he said, and more people were slowly coming to terms with it.

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First-home buyers are among those embracing the change. Photo: Brenton Edwards

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Emma Slape, CEO of Turner Real Estate. Photo: Brad Griffin

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“Some people need a lot more time to understand an apartment or high-density home,” Downing said.

Of those who had moved into a flat or apartment after putting it off for a while, Mr Downing said many wished they had done it sooner.

Emma Slape, CEO of Turner Real Estate, said in September that her agency had noticed a change in preferences for units over houses as it was a more affordable entry point.

She said first home buyers and even small families were opting for units because they were more affordable and offered other lifestyle benefits.

“Years ago we wouldn’t have seen so many first-home buyers, or even people undergoing life changes,” she said at the time.

“Now they want to be close to the city to access better schools and save on transportation costs.”

Ms Slape said newer apartment complexes that focused more on the community and offered more flexibility, including allowing pets, also made the apartments more attractive than ever before.