Growing demand for apartments means unit values are tipped to hit record highs in more suburbs in the coming months.

CoreLogic data shows that unit values hit new highs in the past month in nearly 40% of suburbs in Australia. The data shows that 90% of Brisbane and Adelaide unit markets have already beaten their previous highs, 80% in Perth and 20% in Sydney.

CoreLogic head of research, Eliza Owen, predicts apartment values will continue to rise at a faster pace than house values as buyers seek out the more affordable apartment market. “In most of the capital cities at this point, growth in unit values is starting to overtake that of houses, and that could be reflective of people trying to make their money go further up by purchasing into cheaper asset types,” she says.

This is particularly the case in inner city markets, according to Owen. “As house values soar to new heights, some of that demand must start to shift towards units just out of necessity. It’s a more realistic option, which means the added demand could take some unit markets to new record highs as well as what we’ve recorded last month.”