While Australia's broader property market recorded its sharpest monthly decline since December 2022, apartment buyers in Brisbane and Perth are telling a different story.
Brisbane units rose 17.1% annually to a median of $875,135 - outpacing Brisbane houses at 14.3% - while Perth units climbed 21.8% annually to a median of $760,708.
Nationally, unit values fell 0.5% in July and 1.4% for the quarter to a median of $745,344, according to Cotality's July Home Value Index.
With unit gross yields sitting at 4.6% nationally - well above the 3.5% recorded for houses - apartments are proving more resilient than the headline numbers suggest.
One of the most significant findings from the July data is the yield gap between units and houses.
Nationally, unit gross yields sit at 4.6% compared with 3.5% for houses - a 110 basis point difference that is becoming increasingly relevant as investor activity adjusts to the new negative gearing framework introduced in the May budget.
Across the major capitals, Melbourne units yield 5.1% - the highest of any major city - while Sydney units yield 4.3%, Brisbane units 4.0% and Perth units 4.8%.
Cotality head of research Gerard Burg noted that while yields have moved higher since the start of the year, the increases have been more modest than the lift in the cost of borrowing.
"The changes to negative gearing in the May Federal Budget have shifted the calculus for potential investors, and modest increases in yields will not be enough to encourage purchases of existing properties under the new policy framework," Burg said.
The divergence between cities is stark. Sydney units fell 0.8% for the month and 2.5% for the quarter, with annual growth of just -0.6% and a median value of $889,617. Melbourne units declined 0.7% for the month and 2.0% for the quarter, down 1.5% annually to a median of $632,021.
Brisbane and Perth tell a different story entirely. Brisbane units fell just 0.4% for the month but remain up 17.1% annually - stronger than Brisbane houses at 14.3% - with a median of $875,135.
Perth units rose 0.3% for the month and are up 21.8% annually to a median of $760,708.
Adelaide units held flat for the month, up 11.5% annually to a median of $692,861.
Darwin recorded the strongest monthly unit growth of any capital at 1.0%, up 19.8% annually to a median of $475,907 - and the highest gross unit yield of any capital at 7.3%.
