Apartments vs detached houses: which one should you buy? – John McGrath

Easter is now only a month away, and the real estate market is well into another strong stride for this year, with Cotality highlighting the last week of February was the nation’s busiest period of auctions since late March, 2025.

Some of these auction buyers are likely to be entry-level renters who I expect will enter the market this year as first home-buyers, and look for properties within their budget, in particular, apartments and townhouses, rather than detached homes.

But every buyer should think carefully before buying either type of property, as both come with benefits and advantages.

Starting with the basics, Cotality’s latest Home Value Index found that Sydney’s median apartment value is now $903,080 – an attractive figure when compared to the city’s median house value of $1,607,046. These numbers follow a respective annual lift of 2.7% and 5.5%. At the other end of the real estate market, Hobart features similarly divergent figures of $574, 204 and $779,059, after yearly increases of 5.5% and 8.1%.

But the initial purchase price is just one part of the story, when it comes to these two types of properties. Apartment’s smaller spaces can perfectly suit singles, couples, or small families. Another advantage is their central metropolitan locations, closer to employment opportunities, transport, and other amenities.

The possible disadvantage to them lies in their mid to long-term impact on finances and other important details. So, these should be considered before buying an attached home.

Firstly, while initially more budget-friendly, strata, or body corporate, fees can result in these owners’ costs being almost as steep as those of a comparable detached home buyer.

It’s true these fees include crucial building insurance, which any owner needs. But potentially high fees don’t necessarily equal abundant on-site amenities such as pools and gyms.

Another consideration with apartment living is that while costs for general maintenance and updates are shared between owners, the choice of which company to choose for this work, and when and how it is done, is also shared between owners.

This brings me to a similar point about body corporates. Owners may have to apply for, and receive, approval from other owners if they want to renovate their home, or modify the exterior of their property.

Meanwhile, detached houses’ have benefits and advantages too. Obviously, their initial price will be much higher than those of attached houses. Council rates will be higher, as well.

At the same time, their land size alone – even if it is small – means houses will generally appreciate better, and faster, than attached properties. And, while rarely available, or built, in central city areas, houses can be found almost anywhere else and still be close to amenities.

Most importantly, detached house owners won’t need to pay body corp fees, so in this way, they can enjoy extensive freedom – and space – when it comes to updates, renovations, and pets. This of course means you’re responsible for all maintenance issues but you can also choose who best will suit your budget, and similar, when it comes to tradespeople.

At the end of the day, there’s no right or wrong answer as to what property is best for which buyer. What is important is considering the short, mid and long-term impacts of where and what you choose to buy, especially when it comes to finances. Remember, too, that every home has its good and bad points. Take the time to enjoy your new home and enjoy it for what it really is: a place you can make your own, and a significant financial step ahead in wealth creation.