Units vs Houses – The Canberra Showdown Nobody Asked For (But Everyone Needs)
Spoiler Alert: The Answer Isn't What Your Parents Think
Let's settle this once and for all. The great Canberra property debate: should you stretch yourself to buy a house in Tuggeranong, or grab a unit in Belconnen and actually have money left for furniture?
Your parents think units are "just throwing money away." Your financial advisor is screaming about rental yields. Your friends in Sydney think you're lucky to afford anything. Everyone's got an opinion, but here's what the actual numbers say.
The Cold, Hard Facts
Houses in 2025:
Median price: $927,000
Expected growth: 3-6% (depending on which crystal ball you believe)
Rental yield: 3.6% (about as exciting as watching parliamentary question time)
The reality: You'll need $185,000 for a standard deposit
Units in 2025:
Median price: $562,000
Expected growth: -2% to "maybe flat if we're lucky"
Rental yield: 5.2% (now we're talking)
The reality: $112,000 deposit, or $28,000 with the 5% scheme
The Oversupply Elephant in the Room
Let's address it: Canberra has more apartments than a dystopian novel. Developments like WOVA in Woden dumped 800+ units on the market. Denman Prospect went from hot to not faster than you can say "negative equity."
But here's the plot twist – this oversupply has created opportunities. Units that would've been $700,000 two years ago are now $550,000. If you're buying to live in (radical concept), who cares about short-term growth?
The Real Questions You Should Ask
"But what about capital growth?" Houses win long-term, usually. But if you can't afford the entry price, theoretical growth is as useful as a chocolate teapot. A unit that grows 2% beats a house you can't buy growing at 10%.
"Won't I regret not having a backyard?" Maybe. But you might also regret spending weekends mowing, weeding, and pretending to enjoy gardening. Lake Burley Griffin is everyone's backyard. Use it.
"What about strata fees?" Yes, they exist. Yes, they're annoying. But they also cover insurance, maintenance, and stop you from having to organise a plumber at 2am. Factor in $3,000-5,000 annually for a decent complex.
The Lifestyle Mathematics
Choose a house if:
You have kids/dogs/both/a collection of vintage cars
WFH permanently and need a dedicated office
The thought of sharing walls makes you twitchy
You genuinely enjoy maintenance (seek help)
Choose a unit if:
You value location over size
Travel more than you garden
Want to walk/cycle to work
Prefer spending weekends living, not maintaining
The Investment Angle
If you're buying as an investment (or telling yourself it's an investment to justify the purchase), units are crushing it on yields. That 5.2% return means your tenant's basically paying your mortgage while you wait for the market to recover.
But remember: the best investment is the one you can actually afford to hold. A negatively geared house that sends you broke isn't an investment; it's a very expensive mistake.
The Suburbs Where Each Option Shines
Best unit buys:
Phillip (yields + Woden development)
Turner (location, location, location)
Kingston (if you can stretch – the foreshore isn't going anywhere)
Best house value:
Banks (actual land for under $800k)
Macgregor (family-friendly without the price tag)
Kambah (established, held tightly for good reason)
The Answer Nobody Wants to Hear
There's no universal right answer. Shocking, we know. But here's a framework:
Can you afford a house without eating 2-minute noodles for five years? Consider it.
Will a unit in a better location improve your actual daily life? Probably worth it.
Are you buying based on what you need or what Instagram tells you to want? Be honest.
The addy take: Buy what you can afford in the best location possible. If that's a unit, own it (literally). If it's a house in the 'burbs, embrace it. Just stop waiting for the "perfect" option – it's like waiting for Canberra drivers to use indicators properly. Not happening.