Units are once again becoming an appealing investment option according to the President of the Real Estate Buyers Association Australia.

Cate Bakos, says the rising cost of credit and the fact that affordable housing is now well outside of CBDs, meant that units are in the sights of investors again.

She says the reduction in spending capacity is having a direct impact on consumer choices, as interest rates soar and limit the budgets of property buyers and investors, forcing them to look toward the unit market.

“Units are becoming more attractive as buyers make compromises over space for location,” she says.

Bakos says household sizes have reduced in recent years as well, leading to more demand for smaller units.

She says while Covid created a spike in demand for houses, more generally shrinking average household sizes are more conducive to apartment living than in previous decades.

Also, according to Bakos the ratio between house and unit prices has widened, making apartments a more affordable option.