House or apartment: What’s right for you?


Purchasing a three-bedroom house on a quarter-acre block was once regarded as the “Australian dream.” However, with a growing population, increased urbanisation in major centres such as Sydney, Wollongong, Newcastle and the Central Coast, and changing budgets and lifestyles, many people are now opting for apartment living.

Please note that this article focuses primarily on residential purchases, rather than investments.

Sydney property considerations

Sydney remains Australia’s most dynamic and expensive real estate market. By mid 2025 median house prices in Sydney surpassed $1.7 million, while median apartment and unit prices hovered just above $830,000.

The price gap between houses and apartments is particularly pronounced in Sydney. For example, the median price for a Melbourne house is 53% more than an apartment, while in Sydney it’s over 100% more. This reflects the seemingly unstoppable demand for freestanding homes in the harbour city and, notably, limited supply.

Apartment living in Sydney appeals to those seeking proximity to the CBD, coastal amenities, and vibrant cultural precincts. Plus, of course, many buyers are drawn to the lower entry costs and reduced maintenance associated with units across greater Sydney.

Whether you’re a first homebuyer, expanding your family, or seeking a simpler lifestyle, there are distinct advantages and disadvantages to both houses and apartments. From initial expenses to long-term resale potential, there are many factors to consider when choosing a place to call home.

Advantages of houses

Owning a house offers notable benefits. Here are a few.

  • Capital appreciation: Land generally appreciates in value, whereas buildings may actually depreciate over time
  • Flexibility to make changes: Homeowners can determine paint colours, landscaping, and structural changes like extensions and even subdivision
  • Privacy and space: Enjoyment of private gardens, parking and additional storage capacity, plus reduced neighbour noise
  • No owners’ corporations: No annoying by-laws, meetings or related fees.

Advantages of apartments

The convenience of apartment living is characterised by the following benefits.

  • Affordability: Apartments are typically less expensive than comparable houses
  • On-site facilities: Some apartments have shared amenities, such as gyms, pools and communal gardens
  • Less maintenance: Absence of large lawns, gardens, roofs or external structures requiring upkeep
  • Added security: Greater physical separation from public thoroughfares
  • Convenience and location: Proximity to essential services and public transport
  • Off-street parking: Some houses have private parking, but it’s more likely in apartment complexes.

Your personal circumstances

Financial aspects are crucial. Houses often entail higher ongoing expenses, such as maintenance and council rates. Conversely, apartment owners are subject to owners’ corporation or strata fees that cover repairs and maintenance of common areas, building insurance, and services.

Typically, the upfront and recurring costs of owning a house surpass those of an apartment; however, houses tend to achieve greater long-term value appreciation. This is important if you consider the place you live to be an investment in the future as well as a place to call home.

Choosing between a house or unit is not only a financial decision; it’s a personal one as well.

  • Are you planning to start a family?
  • Will your kids move out in the near future?
  • Is proximity to work opportunities important?

Your like stage and lifestyle are important factors.

Contact Mortgage Broker Sydney

As with any real estate transaction, thorough research will help you make the best choice. Understanding your budget as well as your present and future financial situation is essential.

At Mortgage Broker Sydney, we provide access to industry-leading tools, calculators, and up-to-date property market insights to support your decision making.

We can help you understand the real estate market in different parts of Sydney. There’s a big difference between the median Point Piper apartment price of $4.6 million and the sub-$400,000 prices available in Carramar and Bradbury.

Once you decide on a location or property, we help you secure the most suitable loan for your circumstances. Importantly, our service comes at no cost for clients. We receive a commission from your chosen lender and disclose this arrangement fully.

Please note that lender and government fees or charges may apply.

Contact Mortgage Broker Sydney.