The difference between the price of houses and units is beginning to narrow despite solid house price growth in the past 18 months.

Demand for larger properties during Covid helped to generate significant house price rises, creating a bigger difference in values of the different types of properties.

With house prices now beginning to soften in many locations, that price differential has eased, particularly as unit prices appear to be holding firm.

PropTrack’s Home Price Index shows the national average house price has fallen by 3.6% since March, while during the same period unit prices on average have fallen only 2.6%.

Its analysis of 88 statistical regions in Australia show house values fell in 71 regions while only 43 regions experienced falls in unit values.

Sydney’s Northern Beaches region tops the list for the largest price fall across both houses and units, with house prices down 10.6% and unit prices down 9.8% from their peaks in October last year.