Sydney’s property market is always evolving, but in 2025 a clear shift is underway: more buyers are reconsidering apartments and townhouses as viable alternatives to standalone houses. With affordability constraints, lifestyle changes, and new housing supply entering the market, the traditional preference for houses is being rebalanced.
Why Buyers Are Considering Units Over Houses?
1. Affordability Pressures
- Median house prices remain out of reach for many, even after interest rate cuts.
- Units and townhouses offer a more accessible entry point for first-home buyers and investors.
2. Lifestyle Preferences
- Young professionals and downsizers are prioritising low-maintenance living.
- Proximity to the city, transport, and lifestyle hubs is often valued more than backyard space.
3. Government & Planning Reforms
- Policy focus on medium-density housing is delivering more supply in growth areas.
- Townhouses and units near transport corridors are being fast-tracked.
4. Rental Market Dynamics
- Strong tenant demand in inner- and middle-ring areas makes units attractive for investors.
- Higher rental yields compared to houses in many suburbs.
Suburbs Where Units Are in High Demand
- Parramatta & Olympic Park → Strong infrastructure links and growing job hubs.
- Inner West (e.g., Marrickville, Dulwich Hill, Campsie) → New apartments paired with lifestyle amenities.
- Eastern Suburbs (e.g., Randwick, Maroubra) → Units offer a more affordable entry point compared to houses.
- North Shore Fringe (e.g., Hornsby, Chatswood units) → Popular with families and downsizers seeking convenience.
Where Houses Still Dominate
- Outer West & South-West (e.g., Oran Park, Leppington, Penrith) → Family buyers still prefer detached homes with more space.
- Northern Beaches & Hills District → Houses remain the benchmark for lifestyle-driven buyers with higher budgets.
What This Means for Buyers & Investors
- Buyers → Consider units or townhouses if you want to stay closer to the CBD without overextending financially.
- Investors → Units in high-demand rental areas can deliver stronger yields and long-term tenant stability.
- Sellers → Position units with lifestyle benefits (proximity to cafes, transport, work hubs) to stand out in a competitive market.
Conclusion
Sydney’s great housing debate is shifting. While houses remain aspirational, units and townhouses are becoming the practical choice for many in 2025. With affordability pressures and lifestyle preferences driving demand, buyers and investors who adapt to this trend will be well-placed for the future.
Whether you’re considering a house, unit, or townhouse, our team can help you make the right move in Sydney’s changing property market.
