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Posted: 2021-07-29 06:19:14

The national capital now holds another title: the city with the largest price gap between units and houses in Australia.

According to the latest research released by property analyst group CoreLogic, the price gap between an apartment and a house in Canberra is 74.8 per cent, the largest of all capital cities.

Last month, Canberra's median house price was nearly $880,000, while the median value for a Canberra unit was just over $500,000.

Townhouses are also included as "units" in the research released by CoreLogic.

In the 10 years leading up to March 2021, for every house constructed in Canberra, there were 5.5 units built, which experts say has helped drive up the price of standalone houses.

In fact, since the onset of the COVID-19 pandemic, house prices have increased more than 20 per cent — the price of units has risen by about eight per cent.

Hillside with new houses under construction at Denman Prospect in Canberra.
Canberra's median house price well exceeds the median unit price.(

ABC Radio Canberra: Clarissa Thorpe

)

According to the CoreLogic report, subdued property investment levels, HomeBuilder initiatives and lower-density housing becoming more attractive as a result of the pandemic, have also made standalone houses more desirable for prospective buyers.

A spokesperson for the ACT government said an estimated 100,000 new homes needed to be built in the next 25 years to accommodate for population growth

But they said the government was prioritising sustainability and environmental protection, so higher density homes were being built on existing residential sites, and along major public transport routes to reduce urban sprawl.

The statement also added that the government acknowledged the need for greater housing choices to accommodate Canberra's changing demographics.

"This means releasing more greenfield development for freestanding dwellings, along with establishing more locations for townhouses, units and dual occupancies," the statement said.

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