Investors continue to boost their presence in the property market after years of waiting in the sidelines, with some unit markets gaining huge traction from this buyer segment.

PropTrack senior economist Eleanor Creagh said the gap in unit and house prices has led to the heightened interest for attached dwellings.

“In fact, enquiry volumes on unit listings from investors have surged in every state. Australia-wide, the volume of unit enquiry from investors has rocketed 57% higher year-on-year,” she said.

Here are some of the suburbs that witnessed substantial spikes in enquiries for units over the past year:

Suburb

Growth in enquiries for units (%)

Caringbah (NSW)

220

Rouse Hill (NSW)

209

Pakenham (Vic)

205

Woolloongabba (Qld)

248

Wynnum (Qld)

215

Chermside (Qld)

214

Cannonvale (Qld)

202

South Brisbane (Qld)

202

Calamvale (Qld)

200

Hamilton Island (Qld)

200

Other suburbs in smaller states and territories, including Plympton (SA), Phillip (ACT), Mount Lawley (WA), Howrah (Tas), and Parap (NT), also registered high level of enquiry for unit investors.

The booming demand for units was also apparent in their faster selling times relative to houses in most capital cities in April.

For instance, the time it takes to sell a unit in Adelaide and Canberra has shortened by 15 and 11 days, respectively compared to last year.

Selling days for houses in these two cities only decreased by six days during the same period.

Brisbane also posted a glaring difference between the two segments — selling days declined by eight days for units and only three days for houses.

“Now that COVID-normal is underway and people are returning to major cities, we’re seeing signs that demand for units is starting to bounce back,” Ms Creagh said.

“This is a likely by-product of fresh focus from investors on the apartment market, along with mounting affordability constraints for buyers after last year's record surge in house prices.”

Ms Creagh believes the demand for units are likely to strengthen, especially on the back of rising mortgage rates which could price out many buyers from the house markets.

“Reinvigorated inner-cities may also be a driving force behind growing interest in units, which suffered through the pandemic,” she said.

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