House purchases are trending downwards in New South Wales as buyers increasingly turn to strata properties, according to a new report.
The Property Market Update Q3 2024 report from InfoTrack shows house purchases have dropped from 60.83 per cent of all New South Wales property sales in Q1 to 58.56 per cent in Q3.
Meanwhile, strata dwellings have steadily increased, now accounting for more than a third of sales at 33.01 per cent in Q3.
InfoTrack’s Head of Property, Australia, Lee Bailie, said this trend points to buyers opting for more affordable housing solutions given current economic conditions.
“The reality is that there is greater affordability with units and apartments compared with houses, and as property prices rise, this is a trend we expect will continue,” Mr Bailie said.
The shift aligns with an increase in medium to high-density housing developments, particularly along Sydney’s metro lines, leading to a decrease in single-dwelling house purchases.
First home buyers are also showing a preference for units and apartments.
House transactions among this demographic have fallen by almost 5 per cent this year, from 47.14 per cent in Q1 to 42.91 per cent in Q3.
In contrast, units saw a small uplift among first home buyers, from 54 per cent last quarter to 54.39 per cent this quarter.
Greater Western Sydney continues to dominate first home buyer purchases, but the Central Coast is gaining ground.
The postcode 2259, covering 42 suburbs including Tuggerah and Wyong, made the top 10 list of suburbs for sales.
Liverpool, Fairfield, Casula, and surrounding suburbs, rose from second place last quarter to first this quarter.
Campbelltown, Appin, and surrounds and Parramatta, Westmead, and surrounds rounded out the top three.
Meanwhile, Brisbane’s Indooroopilly and the Gold Coast’s Coolangatta have appeared in the Top 10 list for unit sales across Queensland for the first time.
Indooroopilly, just eight kilometres from Brisbane’s CBD debuted at number eight for unit sales.
Mr Bailie said this was because of the area’s jump in medium-density apartments and its convenient location.
Coolangatta made its first appearance at number nine, while Broadbeach returned to the list at number ten after a year’s absence.
Surfers Paradise maintained its top position for unit sales, a rank it has held for over two years.
In house sales, the Gold Coast suburb of Pimpama topped the list for the first time, moving up from fourth place last quarter.
Mr Bailie said its appeal as a commuter suburb, and distance from the Gold Coast and Brisbane CBD made it appealing.
Other popular areas for house sales included Buderim on the Sunshine Coast, Redbank Plains in Ipswich, Caboolture in Moreton Bay, and Kirwan in Townsville.
The report revealed that houses remain the most popular property type in Queensland, accounting for just over 60 per cent of sales.
Strata units held a 27.43 per cent share of the market.
On the central coast, the move towards strata properties was also apparent.
The report found that more than 54 per cent of first home buyers purchased units over houses in the last quarter.
“House transactions have had an almost 5 per cent drop among this buying cohort this year, decreasing from 47.14 per cent in Q1 to 43.1 per cent in Q2, now only maintaining 42.91 per cent share in Q3,” Mr Bailie said.
