Author: Matthew Jobson, Karlie Wolfe and Andrew Downie
With cost of living pressures, the flow-on effect of the post-pandemic immigration level spike, a paucity of housing and rental stock, and ongoing feasibility constraints limiting the flow of new supply, it’s hardly surprising that interest in strata and community properties has risen from investors and owner occupiers alike.
The National Story
A 2025 survey by Strata Community Association and UNSW City Futures Research Centre indicates that more than 4.2 million people in Australia live in strata or community titled properties, reflecting an increase over the past 3 years of approximately 200,000 people.
Cotality’s November figures show that unit values rose 2.3% nationally in Q3 2025 and that the median capital city unit value is $728k.
According to ABS statistics, rental demand also remains high. However, the pace of growth in median rents is slowing in line with increases in rental vacancy rates.
While the national story is positive, each strata market varies in its strength. We highlight the location-based performance of strata products with a snapshot of the market in 3 cities.
Gold Coast and Surrounding Areas
Over the past 6 years, the product mix of strata and community titled properties in the Gold Coast and surrounding areas has started to change, as evidenced by many medium-rise developments in the Palm Beach area.
The mix of strata products now available in the market has broadened their appeal to investors, first home buyers, downsizers and families. In particular, townhouses and duplexes are meeting many people’s lifestyle preferences for living close to the beach in a low maintenance, high quality property that’s still affordable.
Most new and existing strata products in the Gold Coast area have appreciated strongly over the past 2 years. For example, a unit with 3 bedrooms, 2 bathrooms and 2 car spaces in Palm Beach, which was sold off the plan and settled in 2023 for $679k, was re-sold in the same condition in June 2025 for $1,580,500. Similarly, an existing townhouse in Woodridge with 2 bedrooms, one bathroom and one car space sold in December 2023 for $300k and was resold less than 2 years later with updated flooring for $550k.
Investors are also still being drawn to the Gold Coast’s residential properties, with strong yields being offered by many entry level properties. In the past, this market has seen strong activity from international investors buying one-bedroom apartments. Now, there’s more investor activity from interstate and local buyers who are attracted by the area’s lifestyle offerings, comparatively lower prices and higher yields.
Melbourne
The story of strata performance is less consistent in Melbourne – a trend that is aligned to property values and Melbournian’s lifestyle preferences.
For example, townhouses, apartments and villas under an $800k valuation are in high demand from first-home buyers who are taking advantage of various government schemes designed to support first-home ownership. There’s also a low level of stock in this space and a limited pipeline of new developments because of feasibility constraints.
The story is different for lux apartment offerings in some pockets of Melbourne. For example, in Brighton and the surrounding suburbs, there’s an oversupply of high-end apartments in the $3 million range. This oversupply is seeing values for this type of stock coming off as much as 20% from their peak. In part, this is because the owner-occupier lifestyle demand for this style of living is not as strong in Melbourne as it is in other parts of the country.
Investor activity has risen in Melbourne’s outer suburbs and regional Victoria. We are now seeing many buyers agents, who are representing interstate investors, being active in these areas. For example, in and around Geelong, up to 20% of listings are being sold through buyers agents off market to investors hoping to achieve gross yields of 4.5%.
Perth
Perth’s residential property market, which Cotality November 2025 figures confirm as being at a record high (up 9.4% over the year), is performing strongly – including strata and community living properties at all price points.
Owner occupiers are driving demand for strata products ranging from high-end luxury apartments and townhouses, through to entry level group dwelling, new build and recently renovated properties across Perth’s metropolitan region and south east corridor.
Similarly, the rental market is also performing well. According to the ABS, Western Australia is the state that’s seen median rents grow most strongly, with a 75% increase over the 6 years from April 2019 from $350 to $613 per week.
These market factors, combined with low listing levels, are making strata and community living properties very appealing for private investors as they are an affordable way to tap into the current tight yields. At the entry level, first home buyers are competing with private investors, which is further strengthening demand in a low supply market.
Outlook
We expect to see strong market conditions continue for strata products across Australia as it will take some years for supply levels to meet demand, particularly in the affordable housing space.
With ongoing demand for homes featuring quality finishes at affordable prices, it is also likely investors, owner occupiers and small-scale developers will increasingly look at older units where they can add value through simple renovations.
Matthew Jobson
State Director
matthew.jobson@opteonsolutions.com
Karlie Wolfe
Senior Director - Residential Development & Advisory
karlie.wolfe@opteonsolutions.com
Andrew Downie
Director - Residential Development & Advisory
andrew.downie@opteonsolutions.com
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This article is produced by Opteon Property Group Pty Ltd. It is intended to provide general information in summary form on valuation related topics, current at the time of first publication. The contents do not constitute advice and should not be relied upon as such. Formal advice should be sought in particular matters. Opteon’s valuers are qualified, experienced and certified to provide market value valuations of your property. Opteon does not provide accounting, specialist tax or financial advice.
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