Apartment vs House in Australia: What’s Better for You?

Australia offers a wide mix of housing options. As the land in Australia’s capital cities, such as Sydney, Melbourne and Brisbane is limited with a high cost, apartments are a popular choice when buying a home. In suburbs and regional areas, houses tend to be preferred as they are affordable. This means that depending upon where you would like to live and how much you are willing to pay, in all likelihood your choice between a house or apartment will be determined by your answer to those questions.

1.         Cost Comparison: Apartment vs House

• Purchase Price

Apartments in most instances will be less in cost than purchasing a house, especially in the capital city area; therefore, as a first home buyer it is typically easier to purchase an apartment than a house because of the price difference between the two choices (when comparing the cost of the apartment against a house in the capital cities).

• Ongoing Costs

Apartments will incur strata corporate fees while living there; however, the body corporate pays for the maintenance of the building, building insurance, lifts, security, and any shared facilities. Owners of houses will have all of the above responsibilities (as they will not pay strata/ body corporate fees).

• Utilities and Bills

The average size of a unit will normally be less than that of an equivalent house in terms of average utility bills; therefore, bills for electricity and pilfered water from dirty clothes will also generally be less if you live in an apartment (this may be more pronounced for larger houses).

2.         Space and Living Comfort

• Apartments

An apartment is small and easy to look after. Apartments are suitable for individuals such as students, young couples or families of one or two. Apartments generally do not provide much room for storage and outside space is generally very small or shared with other units.

• Houses

Houses are larger than apartments and typically provide a great deal of privacy, independence and options for making repairs or changes to residences. By having your own garage, yard and additional rooms for storage within or outside your home, houses are suited to family and pet owners, as well as individuals who like spending time outdoors.

3.         Location and Lifestyle

• Apartment Living

Most apartments are within close proximity to the downtown business district, businesses, schools, public transportation and entertainment; these) and proximity reduce commuting distances for the apartment tenant. Living in an apartment can be ideal for those who prefer to be around coffee shops, shopping and entertainment.

• House Living

Most houses are in suburban or regional areas. As a result, home to work and home to play may require longer travel by car, but you will have a much quieter neighborhood and have more of a sense of community. For those who enjoy having their own space and have young children, the suburban lifestyle fits perfectly.

4. Maintenance and Responsibilities

• Apartments

Maintenance is simpler. External repairs, roofing and common areas are handled by the body corporate. You are mainly responsible for the inside of your unit.

• Houses

House owners handle everything. You will maintain full control over your house; therefore, you will also need to spend time and money fulfilling your property-preservation control duties.

5.         Security and Safety

Apartments generally offer greater security. Basic security features may include secure entry points, CCTV cameras, intercom systems and on-site managers of the building. For houses, personal security measures such as locks or alarms or fencing must be used. If safety is a major concern, apartments may provide extra peace of mind.

6.         Flexibility and Customization

Houses allow more freedom. You can renovate, extend, repaint or landscape as you like, subject to council approval. Apartments have strict rules. Major changes usually need body corporate approval and options are limited. If you enjoy personalising your home, a house gives more freedom.

7.         Investment Potential

• Apartments as Investments

Apartments often offer better rental yields in city areas due to strong demand. However, capital growth can be slower, especially in buildings with many similar units.

• Houses as Investments

Most people believe that houses have a better chance of long-term capital growth than apartments due to the increase in land value over time. They are very popular with families and long-term renters alike.

Your investment goal matters. For steady rental income, apartments can work well. For long-term growth, houses often perform better.

8.         Lifestyle for Different Life Stages

• Students and Young Professionals

Apartments are ideal. They are affordable, close to universities and workplaces and easy to maintain.

• Couples

Both options work. Apartments suit city-focused couples, while houses suit those planning for children.

• Families

Houses are often better. Children need space to play, and schools are usually closer in suburbs.

• Retirees

Many retirees prefer apartments for low maintenance and security. Others choose houses in regional areas for quiet living.

9.         Noise and Privacy

Apartments can be louder than houses due to shared walls. The level of soundproofing you enjoy in an apartment also depends upon how well the building has been built. Houses provide more privacy, particularly with respect to standalone homes. A home might provide a quiet lifestyle for you.

If you value quiet living, a house may suit you better.

10.       Community and Neighbours

Living in apartments encourages social interaction due to common areas. The communal possibility of apartments promotes community among individuals who live close together, and therefore frequent socialportunities are available. Conversely, while houses will also provide a fair amount of private space, individuals who choose to live in a house will have less opportunity for frequent social interaction with their neighbours.

11.       Environmental Impact

Apartments typically have a reduced environmental impact than houses because they require less land area and less energy. Houses consume more resources but allow you to do things like have solar panels or rainwater tanks.

12.       Resale Value and Demand

 Both apartments and houses are currently in high demand in Australia. Well-located apartments will sell quickly. Houses located in good school zones and near public transport are in consistently high demand.

13.       Legal and Ownership Differences

Apartment owners also own a share of the common property; therefore, all decisions must be made collectively by all shareholders.  House ownership is much simpler, with the owner having full control of their property.