by Sanjeev Sah | Jan 23, 2024 | Market Updates

House prices outperformed unit prices in 2023 (see graph), according to PropTrack, which should come as no great surprise. 

Historically, house prices have grown faster than unit prices. That’s because land generally represents a higher share of a house’s total area than a unit’s – and it’s the land, rather than the home, that causes a property to grow in value. 

The reason some investors favour units is because they tend to be cheaper and have a higher yield. But houses tend to experience a greater overall return (yield plus capital growth) over the long-term. As a result, they tend to be a better option for most investors.