New analysis from KPMG predicts that unit price growth will outpace house prices over the next two years as affordability challenges push buyers towards more accessible options.
With land shortages and more suburbs reaching million-dollar house price medians, demand for units is rising. KPMG’s chief economist Brendan Rynne forecasts unit prices to grow by 4.6% in 2025, compared to 3.3% for houses.
This trend is expected to be most pronounced in Sydney and Melbourne, where unit prices provide a more affordable entry point for buyers. As of February 2025, Sydney’s median unit price of $815,000 is already higher than the median house prices in Hobart and Darwin, while Melbourne’s median unit price sits at $583,000.
