Shifting real estate trends favour apartments over houses

The idea that houses always outperform apartments is no longer a given.

In this episode of The Property Playbook, Terry Ryder spoke with Michael Wilkins, founder of Nuestar, about a notable shift in the property market.

According to the report “The Rise and Rise of Apartments,” unit values in Brisbane, Perth, and Adelaide grew faster than house prices in 2025. Several factors are driving this trend. Affordability is increasingly important, as higher median house prices push buyers toward more accessible apartments. Supply constraints, including rising construction costs and project delays, are also shaping the market.

Limited supply

Location and lifestyle appeal remain critical. Apartments are often closer to transport, childcare, and other amenities, making them attractive to a wide range of buyers. Low-maintenance living is particularly appealing to older purchasers, while new developments with gyms, pools, and other features are boosting rental potential. Across most regions, apartment rents are growing faster than house rents, and limited supply is expected to continue putting upward pressure on rental income.

Wilkins emphasizes the importance of strategic investment, advising buyers to focus on properties near transit and to carefully assess developers’ track records. Brisbane is a standout market, with demand for apartments rising ahead of major infrastructure projects and the 2032 Olympics, creating opportunities for investors looking to get in early.

The rise of apartments signals a broader shift in real estate, challenging old assumptions and highlighting the potential for growth and income in properties beyond the traditional house.