Key takeaways
Even in Australia’s most expensive postcodes like Toorak, Paddington, and Surfers Paradise, buyers can still purchase property for under $1 million if they’re willing to choose a unit instead of a house.
In some prestige suburbs, houses sell for over $4 million, while units trade for less than a fifth of that.
The difference isn’t because apartments are cheap; it’s because houses in these areas are essentially “estates” commanding ultra-premium prices.
While units lack land and the capital growth potential that comes with it, they still provide access to premium locations, lifestyle appeal, and investment-grade fundamentals.
For many buyers and investors, it’s a smart, affordable entry into Australia’s most prestigious postcodes.
Let’s be honest, when you think of Toorak, Paddington or Surfers Paradise, “affordable” isn’t the first word that comes to mind.
These are blue-chip postcodes where homes sell for the kind of money that makes even seasoned investors wince.
But here’s the thing, you don’t always need $4 million (or more) to get your foot in the door of these elite enclaves.
There’s a clever shortcut that savvy buyers and strategic investors are increasingly using —one that lets you live (or invest) in a premium suburb without the premium price tag.
And it all comes down to buying apartments.
Why units are the new gateway to prestige
Fresh data from PropTrack shows that even in Australia’s most expensive suburbs, you can still find affordable entry points if you’re willing to compromise on land.
In places like Toorak in Melbourne, Strathfield and Greenwich in Sydney, and Surfers Paradise in Queensland, the median house price sits well north of $4 million.
Yet, the median unit price in those same suburbs is under $1 million.
That’s right, for less than a quarter (in some cases, less than a fifth) of the price of a typical house, you can buy a quality apartment in the same blue-chip postcode.
So, while you won’t have a sprawling backyard or your own tennis court, you will have access to the same postcode, schools, amenities, lifestyle, and, importantly, long-term capital growth drivers.
As REA Group economist Angus Moore put it, “It’s not that the units are cheap, it’s that the houses are really expensive.”
And that distinction matters. Because it shows that demand for prestige postcodes remains strong, but is being reshaped by affordability pressures and changing buyer demographics.
Suburbs where units are millions of dollars cheaper than houses
| Suburb | State | Median house price | Median unit price | Difference | |
| 1 | Toorak | VIC | $4,510,000 | $798,000 | $3,712,000 |
| 2 | Strathfield | NSW | $4,255,000 | $755,000 | $3,500,000 |
| 3 | Greenwich | NSW | $4,250,000 | $800,000 | $3,450,000 |
| 4 | Surfers Paradise | QLD | $4,100,000 | $759,500 | $3,340,500 |
| 5 | Roseville | NSW | $3,908,000 | $940,000 | $2,968,000 |
| 6 | Kensington | NSW | $3,600,000 | $970,000 | $2,630,000 |
| 7 | Paddington | NSW | $3,600,000 | $985,000 | $2,615,000 |
| 8 | Gordon | NSW | $3,558,000 | $903,000 | $2,655,000 |
| 9 | Mermaid Beach | QLD | $3,360,000 | $900,000 | $2,460,000 |
| 10 | Turramurra | NSW | $3,240,000 | $994,300 | $2,245,700 |
| 11 | Lane Cove | NSW | $3,237,500 | $955,000 | $2,282,500 |
| 12 | St Ives | NSW | $3,200,000 | $1,000,000 | $2,200,000 |
| 13 | Malvern | VIC | $3,100,000 | $632,500 | $2,467,500 |
| 14 | Gladesville | NSW | $3,050,000 | $800,000 | $2,250,000 |
| 15 | Hawthorn | VIC | $3,035,000 | $575,000 | $2,460,000 |
| 16 | Balwyn | VIC | $3,000,000 | $790,000 | $2,210,000 |
| 17 | Burwood | NSW | $2,961,000 | $890,000 | $2,071,000 |
| 18 | Kingsford | NSW | $2,917,500 | $960,000 | $1,957,500 |
| 19 | Dee Why | NSW | $2,849,000 | $975,000 | $1,874,000 |
| 20 | New Farm | QLD | $2,800,000 | $925,500 | $1,874,500 |
| 21 | Applecross | WA | $2,800,000 | $995,000 | $1,805,000 |
| 22 | Eastwood | NSW | $2,720,000 | $732,000 | $1,988,000 |
| 23 | Epping | NSW | $2,655,944 | $800,000 | $1,855,944 |
| 24 | Darlinghurst | NSW | $2,612,500 | $967,500 | $1,645,000 |
| 25 | Camberwell | VIC | $2,610,000 | $855,000 | $1,755,000 |
| 26 | Kew | VIC | $2,600,000 | $801,566 | $1,798,434 |
| 27 | Croydon | NSW | $2,555,000 | $866,000 | $1,689,000 |
| 28 | Hawthorn East | VIC | $2,550,000 | $575,000 | $1,975,000 |
| 29 | North Ryde | NSW | $2,550,000 | $832,900 | $1,717,100 |
| 30 | Glebe | NSW | $2,550,000 | $890,000 | $1,660,000 |
| 31 | Ryde | NSW | $2,545,000 | $697,500 | $1,847,500 |
| 32 | Ascot | QLD | $2,525,000 | $750,750 | $1,774,250 |
| 33 | Nedlands | WA | $2,495,000 | $785,525 | $1,709,475 |
| 34 | Armadale | VIC | $2,492,500 | $655,500 | $1,837,000 |
| 35 | Marsfield | NSW | $2,440,000 | $980,500 | $1,459,500 |
| 36 | Castle Hill | NSW | $2,425,000 | $971,500 | $1,453,500 |
| 37 | Mont Albert | VIC | $2,422,500 | $800,000 | $1,622,500 |
| 38 | Black Rock | VIC | $2,400,000 | $992,500 | $1,407,500 |
| 39 | Summer Hill | NSW | $2,355,000 | $963,500 | $1,391,500 |
| 40 | Glen Iris | VIC | $2,350,000 | $654,500 | $1,69 |
Source: PropTrack
Who’s buying these prestige units?
Interestingly, we’re seeing a real shift in who’s entering these markets.
In Paddington in Sydney’s east, for example, long-time investors are selling their apartments to first-home buyers and young professionals who see an opportunity to buy into a suburb that would otherwise be completely out of reach.
Similarly, in Hawthorn in Melbourne’s east, agents are reporting that about 90% of apartments are now being sold to first-home buyers, typically professionals in their 20s and 30s who value proximity to transport, cafes, and lifestyle amenities over land size.
This tells me that we’re witnessing a structural shift, not just in what people can afford, but in what they value. The “Great Australian Dream” is evolving.
And for strategic investors, that’s a big clue.
Investors are waking up to the numbers
While capital growth is critical for investors, let’s talk yields for a moment.
While prestige houses are often all about status and scarcity, they don’t typically deliver strong cash flow.
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In contrast, units in those same suburbs often yield twice the rental income of houses.
Take Kensington in Sydney’s east, for instance. According to www.realestate.com.au:
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The typical house fetches around 2% rental yield, based on a $3.6 million price tag and $1,350 weekly rent.
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The typical unit? Around 4.3% yield, based on a $970,000 price and $795 weekly rent.
That’s a substantial difference in both yield and mortgage exposure.
Tip: And here’s what many investors don't realise: the rental market for premium units is far deeper and more liquid than for high-end homes.
There’s a constant flow of renters —young professionals, downsizers, and expats —who want the prestige location, not necessarily the palatial home.
So, for investors who know how to read the numbers, the case for blue-chip units is becoming stronger than ever.
The trade-offs are real, but the rewards can be too
Of course, choosing a unit over a house isn’t without compromise.
You’re giving up land, and with it, the powerful driver of long-term capital growth that comes from scarcity.
But in suburbs where the land component is already maximised and demand for location and lifestyle is insatiable, that trade-off can still deliver exceptional results over time.
Think of it this way: you’re not buying a big block of dirt, you’re buying a slice of a prestigious postcode with all the social proof, lifestyle appeal, and investment-grade fundamentals that come with it.
And that’s something even seasoned investors can appreciate.
Final thoughts
Australia’s prestige suburbs will always command top dollar; that’s the nature of scarcity.
But that doesn’t mean they’re off-limits to those with smaller budgets or strategic minds.
Whether you’re a first-home buyer wanting to live among the elite, or an investor seeking strong yields and reliable long-term demand, blue-chip units offer a smarter, lower-cost way to access premium postcodes.
At Metropole, we often say that property investing isn’t about buying the cheapest property; it’s about buying the right property.
And sometimes, the right property is a well-located apartment in a suburb where the neighbours’ homes are worth four times as much.
Because while everyone else is chasing land, you could be quietly securing your spot among Australia’s most sought-after suburbs without mortgaging your future to do it.
