Brisbane: Should you be looking at a house or unit?

All eyes are on Brisbane at the moment.

Many commentators are tipping price growth for the city, which some say is at an earlier stage in its price cycle than Sydney or Melbourne.

According to RP Data-Rismark's Home Value Index, Brisbane has seen a 7% increase in dwelling values in the 12 months to June, with a median dwelling price of $455,000. Brisbane's median price sits below Sydney's, Melbourne's, Perth's, Darwin's and Canberra's, and the city has exhibited much more price growth in the past year than the slightly cheaper Adelaide, where dwelling values increased only 2.9%

But if you're considering a Brisbane purchase, should you be looking at a house or unit? Property Observer breaks down the data.

Houses

The median price for a house in Brisbane and the Gold Coast was $480,000 for the quarter to June, according to RP Data. If you're looking for a property around that price, you might see something like 1256 Waterworks Road in The Gap, pictured below.

About 20 minutes from the Brisbane CBD, the 1970s weatherboard three bedder sits on a 683 square metre block. It sold for $490,000 earlier this month.

If you are intending to rent out your Brisbane house, you can expect to see 4.5% yields. For houses, Brisbane offers the third best gross rental yields of all the capital city markets, behind Darwin and Hobart.

Asking rents for Brisbane houses have increased by 1.4% in the past 12 months, according to SQM Research's Weekly Rents Index, to $443.70 per week. For a three bedroom house, you can expect to attract around $419.90 per week. Houses have seen a 4.5% increase in asking rents in the past three years (5.1% for three bedroom houses)

Brisbane currently sees a 2.4% vacancy rate for all homes.

Houses in Brisbane increased in value by 7.2% in the last 12 months, according to RP Data.

For our take on Brisbane units, see the next page.

Units

While Brisbane house prices have increased by 7.2% in the last year, Brisbane's units have seen slightly more modest growth in the same time. Units in the city have increased 5.4% in price on a year-on-year basis, and now have a median price of $385,000.

For that price, you might see a unit like this two bedroom apartment in Enoggera, about 15 minutes from the Brisbane CBD.

It sold for $390,000 in early June.

For a two bedroom unit in Brisbane, you can expect $352.40 per week in rent. The median weekly asking rent for all units in the city is $366.70. Unit asking rents have actually decreased slightly on yearly basis, down 0.1%. But three-year asking rent growth was higher for units than houses in the city, with a 4.6% increase against a 4.5% increase.

You're likely to see more rent per dollar spent on purchase with a unit than you will with a house in Brisbane. Units in the city yield 5.4% according to RP Data, above 4.5% from houses. Brisbane's units offer the second highest yields of any capital city, with only Darwin units on top.

House or unit?

Houses have shown stronger price growth than Brisbane units in the past year, but units currently offer better rental yields.