House, apartment or townhouse? The pros and cons of each

There’s much more to property in Australia than just houses or units. And if you’re in the market for a home or investment property, it helps to know your townhouses from terrace homes so that you can choose a place that’s suited to your goals and needs.

Australians are blessed with choice when it comes to buying a family home.

Nationally, Australia has 10.9 million private dwellings.

The sheer scale of properties points to a wide variety of housing types to suit different budgets and lifestyles.

So, it can pay to cast your net wide.

With this in mind, let’s take a look at the main types of housing you can choose from.

Houses – freestanding, semi or terrace?

Houses dominate the property scene in Australia, accounting for a whopping 70% of the nation’s private residences.

But not all houses are the same.

‘Detached’ houses are freestanding, or standalone, residences.

That’s quite different from semi-detached houses, which share a common wall with a neighbouring home – something often seen in rows of terrace houses, typically dating from the 19th and 20th century.

The pros of houses: houses have historically shown a higher rate of capital growth than other types of residential property.

The cons of houses: houses often come with a price premium over apartments.

As a guide, the median price for a house nationally is $879,680, compared to $669,700 for apartments.

Apartments

Apartment living has gained a big following in recent years, with one in six (16%) Australians calling an apartment ‘home’.

And they continue to grow in popularity.

Realestate.com.au says searches for apartments have been trending upwards since mid-2020, accounting for almost 40% of all ‘buy’ searches in late 2024.

The pros of apartments: part of the appeal of apartments is affordability. However, they can also offer the advantage of low-maintenance living (think no lawns to mow each weekend).

The cons of apartments: one thing to watch out for is strata levies. These cover the cost of building maintenance and repairs, and newer developments with more facilities can come with higher strata fees.

Townhouse or villa?

Not keen on an apartment, but looking for something more affordable than a house?

The solution could be a townhouse or villa.

Townhouses make up 13% of dwellings across Australia. They typically have two storeys while a villa is usually a single-storey home.

The pros of townhouses: the small garden or courtyard space associated with townhouses and villas can offer residents more private space.

The cons of townhouses: both townhouses and villas are part of a strata scheme, which makes it worth keeping an eye on strata fees.

Duplexes

Duplexes can tick a bunch of boxes. They’re a modern version of a semi-detached house, often with two adjoining homes constructed on a larger block, connected by a single wall.

While duplexes are less common than houses or apartments, they have the potential to let you buy a home for almost half the price of a regular house.

The pros of duplexes: a duplex can combine the privacy of a house with the affordability and low maintenance of a townhouse or villa.

The cons of duplexes: according to REA Group, owners of both duplex homes must agree to a building insurance policy that covers both sides of a duplex. This is something to look into before buying.

Talk to us to find out what you can afford

The type of property that’s right for you is a very personal decision.

What you are able to buy can be shaped by both personal preference and your borrowing power. And more often than not, trade-offs and compromises occur.

Call us today to know how much you can afford to borrow. It could shape your choice of home.