Which has grown more, houses or units in capital cities?
“Hello and welcome back to daily buying tips, I’m Dean Berman from Berman Buys.
Today were going to talk about which has grown more houses or units in capital cities?
There is often a debate about which one to buy.
Some say houses due to land content and more versatility i.e. the ability to do more with it.
Some like units because of the prime locations and easy rentability.
For investors the answer is simple in my opinion, which I will get to shortly.
Since 1975 Sydney’s housing market has outperformed the unit market by 4 times.
In Melbourne it’s 10 times.
In Brisbane since 1980 its 14 times.
To give some closer perspective.
Sydney and Brisbane houses have outperformed units by 1x.
Melbourne by 1.5x.
I would argue houses increase faster because of land content.
As land becomes scarcer demand increases.
Causing increased competition.
And in turn increased prices due to this increased competition.
A quote by Mark Twain best emphasises this point.
“Buy land, there not making any more of it”.”