Unit price growth is predicted to continue to outperform house price growth in the next two years. New analysis by KPMG says with more suburbs achieving million-dollar house price medians and land in short supply, buyers are turning their attention to the more affordable unit market.

KPMG chief economist and partner Brendan Rynne, says this increasing demand is likely to lead to further price growth in the unit market. He tips unit prices to grow by 4.6% in 2025 compared with 3.3% for houses. “The shift is largely driven by ongoing affordability constraints, particularly in capital cities where the escalating prices of detached houses have left a large portion of the population priced out of that sub-market,” Rynne says. “Attached dwellings offer relatively lower entry points compared to houses, making them more viable options for a larger pool of buyers.”

The analysis predicts that in 2026, Melbourne and Sydney will have the most substantial unit price growth. According to PropTrack data, as of February 2025, Sydney had a median house price of $1.437 million and a median unit price of $815,000 (which is higher than both Hobart and Darwin’s median house prices), while Melbourne has a median house price of $898,000 and median unit price of $583,000.