Australian unit market update — July 2022


National unit values fell for the second consecutive month in June, as rising interest rates put further downward pressure on the country’s two biggest cities, Sydney and Melbourne.

CoreLogic’s Home Value Index recorded a -0.4% decline in national units in June, taking values -0.2% lower over the quarter.

Australia’s medium and high-density markets have been slightly more resilient compared to detached houses, which saw values fall -by 0.7% over the month.

Nationally house values are still outpacing units both quarterly and annually, however, the 12-month performance gap between houses (12.5%) and units (6.8%) has almost halved, reducing to 5.7 percentage points from a 10.9 percentage point gap in September 2021.


Affordability continues to be a driving force for declines in unit values.

While capital city unit values fell -0.5% in June and -0.7% over the past three months, this was predominantly caused by declines across the capitals’ most expensive markets, with upper quartile unit values decreasing by -2.2% over the quarter.

The quarterly fall in capital city unit values is being led by declines in the most expensive markets.

Over the June quarter, values for units in the broad middle market remained flat while the lower quartile, the most affordable 25% of the market, increased in value by 2.0%.

This illustrates the diverse growth conditions across the unit sector, even as the pace of growth eases across these value segments.


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Sydney’s median unit value ($821,150) has recorded the strongest decline, falling -1.0% in June and -2.1% over the past three months.

After five consecutive months of falling values, Sydney units are now just 3.5% higher than they were this time last year, and -2.9% below the peak value recorded in November 2021.

Across Melbourne, unit values fell -0.6% in June and -0.5% over the quarter, while Hobart, which has the smallest relative gap between house and unit values, saw values declined -by 0.3% over the month.

The number of listings in Sydney and Melbourne also normalised throughout 2022, helping to dampen demand.

At the end of June, total advertised unit listings were 15.4% above the previous five-year average in Sydney, and 20.3% higher than Melbourne’s five-year average.

More choice has helped rebalance buyers’ power at the negotiating table and has taken some of the urgency out of the market that was seen at the beginning of 2021.

Adelaide’s unit market is the only capital city or rest of the state house or unit market yet to show signs of a slowdown in growth, recording a new peak monthly rate of 1.7%.

The quarterly rate of growth also hit a new peak of 4.9% in June.

Adelaide is the outlier in terms of unit performance at present, partially due to an extraordinary shortage in stock.

With approximately 1,100 units advertised for sale at the end of June, Adelaide’s total listing levels are -35.0% below the level seen this time last year and -45.9% below the previous five-year average.

While value changes remain positive across the remaining capital cities, the difference is the pace of growth has come down significantly between the first two quarters of 2022.

Brisbane’s quarterly growth has eased from 4.6% over the three months to April, to 3.5% over the June quarter and similar easing has been seen across Canberra, Perth, and Darwin, recording quarterly increases of 2.6%, 1.1%, and 1.0% respectively.

Recent CoreLogic analysis found 68.2% and 59.4% of Sydney and Melbourne house and unit markets recorded a quarterly fall in unit values, while only 5.6% and 5.0% of suburbs in Brisbane and Adelaide saw unit values fall over the quarter.



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