First-home buyers urged to seize the moment as units forecast stronger capital growth in this major city
Apartment price growth in one major city is forecast to exceed that of houses in 2025, creating a unique opportunity for first-home buyers, according to new data from property platform Domain.
Nicola Powell (pictured above), chief of economics and research at Domain, said the anticipated trend could allow entry-level buyers to build equity and strengthen their foothold in the property market, particularly as unit prices remain significantly more affordable than houses.
“Historically, houses have outperformed units in terms of capital growth,” Powell said. “But in 2025, we are expecting Brisbane units to outpace houses, which is quite unusual.”
According to Domain’s End of Year Wrap report, house prices in Brisbane are expected to increase by 5% to 7%, while apartment prices are forecast to rise by 7% to 9%. This makes Brisbane the only major city where unit price growth is predicted to outperform houses.
In other cities, apartments and houses are forecast to grow in value at similar rates. Perth is expected to see 8% to 10% price growth for both property types, while Adelaide is forecast to experience a 7% to 9% increase across the board.
“This trend is unique to 2025,” Powell said. “In Brisbane, we expect units to outperform houses, while in other markets, the growth rates for both property types will be similar. This is a shift from the typical pattern where houses have stronger capital growth.”
The forecast offers hope to budget-conscious first-home buyers looking to enter the market. Powell noted that units provide a more affordable entry point, particularly for buyers seeking proximity to city centres.
“Units allow buyers to access the market sooner because they are priced lower than houses,” Powell said. “For first-home buyers, this presents an opportunity to benefit from capital growth and start building equity, which can later be leveraged into purchasing a house.”
With rising property prices continuing to challenge first-time buyers, the forecasted growth in unit values could encourage more to consider apartments as a viable first step on the property ladder.
Australia’s housing market has historically prioritised standalone homes, reflecting the cultural aspiration of owning a house on a traditional quarter-acre block. However, affordability pressures and demographic shifts have increasingly steered some buyers toward apartments, particularly in urban centres.
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