Deciding between a house and a unit for investment in Melbourne involves considering different risk and reward profiles, and how these align with current market conditions. As of December 2025, both property types present opportunities, but their appeal varies depending on location and investor goals.
Currently in Melbourne, particularly within the Eastern Suburbs – Fletchers’ core area – houses generally demonstrate stronger capital growth potential, driven by land value and family buyer demand. In 2026, buyers in suburbs like Balwyn and Doncaster continue to favour properties with renovation potential and larger land sizes. Units, however, often offer higher rental yields and can be more accessible entry points into the market. The typical campaign for a house in these areas runs for 4-6 weeks, with strong emphasis on presentation and light-filled spaces. Unit campaigns may be shorter, reflecting a different buyer pool. Sellers should realise that preparation costs differ; styling a house can range from $2,000 to $8,000, while a unit may require less extensive work. Agent commission, typically 1.5-2.5% across Melbourne suburbs, is a key consideration when calculating net returns. We’ve observed that investor interest in units is often concentrated around transport hubs like Box Hill and Ringwood.
Ultimately, the ‘better’ investment depends on individual circumstances and risk tolerance, with both houses and units playing a role in the Melbourne property landscape.