Melbourne suburb where buyers save the most by buying a unit instead of a house

And units in prime locations like Hawthorn and Malvern can be purchased for a fraction of the cost of their larger counterparts.

CoreLogic’s median figures for house and unit values ​​reveal the Melbourne suburbs where buyers save the most when they buy a unit instead of a house.

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Carlton buyers save over $ 1.32 million, revealing a 338% home premium.

Purchases of Hawthorn units typically cost $ 2.07 million less, while units from Malvern cost $ 2.24 million less and units from St Kilda West about $ 1.9 million.

Carlton’s median unit value was $ 391,448 in June, Hawthorn’s was $ 629,751, Malvern’s was $ 727,890, and St Kilda West’s was $ 617,830, according to the data.

The high supply of units and the lack of out-migration were factors that kept unit values ​​low, the report noted.

But data from the Australian Bureau of Statistics cited in the CoreLogic Property Pulse report indicated that unit construction was showing signs of slowing down, while construction of new homes intensified.

Frustrated home hunters whose price is no longer on the market due to the dramatic rise in house prices may also be forced to look for units instead, creating increased demand in the area.

“Melbourne saw a record difference between the medians of homes and units at 52.4% in June,” the report notes.

“However, as progressively higher immunization levels pave the way for safer high-density living and affordability constraints are met in single-family dwellings, there may be more demand for the unit pool. in the coming years, which would narrow the gap between the two stocks types. “

CoreLogic’s head of research, Eliza Owen, said the premium for homes was at least three times higher for a number of postcodes in downtown Melbourne.

Single-family homes were in high demand across the country after Covid-19, and this was reflected in the big difference between house and unit values.

“These downtown suburbs also contain a great diversity of housing, including pockets of high density that would typically see lower unit values,” Ms. Owen said.

“Homes can be placed in more desirable areas of the city, and the convenience of a single-family home and land so close to the CBD attracts a premium as well. “

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Top 10 suburbs with the highest premium for houses

(Median values ​​in June 2021)

Suburb House Units Home price premium

Carlton $ 1.71 million 391,448,338%

Hawthorn $ 2.7 million $ 629,751 329%

Malvern $ 2.97 million $ 727,890 309%

West St Kilda $ 2.52 million $ 617,830 308%

Caulfield North $ 2.58 million 720 $ 328 259%

Hawthorn East $ 2.49 M $ 704,457 254%

Elsternwick $ 2.41 million $ 708,437 241%

Box Hill $ 1.76 million $ 525,404 236%

Malvern East $ 2.19 million $ 656,582 234%

Glen Iris $ 2.38 million $ 717,144 232%

Source: CoreLogic

rebecca.dinuzzo@news.com.au