Unit price growth is expected to outpace house price growth over the next two years, according to new analysis by KPMG.

With more suburbs reaching million-dollar median house prices and land supply tightening, buyers are shifting focus to the more affordable unit market.

KPMG chief economist and partner Brendan Rynne predicts this rising demand will drive further price increases in the unit sector.

He forecasts unit prices to rise by 4.6% in 2025, compared to a 3.3% increase for houses.

“The shift is largely driven by ongoing affordability challenges, particularly in capital cities, where soaring detached house prices have priced out many buyers,” Rynne says.

“Attached dwellings provide a lower entry point compared to houses, making them a more accessible option for a broader range of buyers.”

The analysis also suggests that by 2026, Melbourne and Sydney will see the strongest unit price growth.

According to PropTrack data (February 2025), Sydney’s median house price stands at $1.437 million, while its median unit price is $815,000—higher than the median house prices in both Hobart and Darwin. Melbourne’s median house price is $898,000, with a median unit price of $583,000.