Growing Difference Between Entry Level Dwelling and Unit Values

Property values do not always move uniformly across housing types, and recent data highlights a growing divergence between houses and units in Melbourne. Domain’s latest First Home Buyer Report shows the entry price for a unit has fallen 2.4% over the past five years, from $452,000 in 2020 to $441,250 in 2025.

The result is an unusual market dynamic where entry-level apartments are now slightly cheaper than they were five years ago. Over the same period, the entry price for a house in Melbourne rose 20% to $720,000.

Researchers attribute the softer unit market to a large pre-pandemic construction pipeline, pandemic-era population shifts and reduced investor demand. While this has improved affordability for first home buyers, it has also contributed to slower price growth across parts of the apartment sector.

This difference can influence how property values move within the same market. Detached homes and smaller dwellings are responding differently to supply conditions, meaning prices can evolve at different speeds within the same suburb or council area. This can be particularly relevant in established councils such as Boroondara, Darebin and Whitehorse, where a mix of housing types exists within the same local market.

Understanding these structural differences is important when assessing lending security, insurance exposure or recovery outcomes tied to residential property.

#propertyvaluations #Melbourneproperty #propertyprices

Clear, independent valuation advice is essential when different housing types move in opposite directions. To obtain evidence-based assessments across Boroondara, Whitehorse, Darebin and surrounding Melbourne councils, call Mason’s Valuation Office on 0417 741 481 or visit https://propertyvaluation.melbourne/about-us/#contact.