Is Residential Property a House?

When people hear the term “residential property,” they often picture a traditional standalone house with a backyard. However, in Australia’s diverse real estate market, residential property encompasses a wide range of housing types, each catering to different lifestyles, budgets, and needs. While houses remain a popular choice, apartments, townhouses, duplexes, and even some mixed-use developments fall under the category of residential property. Understanding the differences between these options can help buyers, investors, and renters make informed decisions, especially in the competitive world of residential sales.

Defining Residential Property

A residential property is any property designed for people to live in. In Australia, this includes:
Houses (Detached Dwellings) – Traditional standalone homes, often with private yards.
Apartments (Units or Flats) – Multi-storey buildings with individual living spaces.
Townhouses – Multi-level properties sharing walls with neighbouring homes, offering a balance between a house and an apartment.
Duplexes – Two separate dwellings in one building, often with independent entrances.
Villas – Single-storey homes in small complexes, popular among retirees.
Granny Flats – Secondary dwellings on the same property as a main house, often used for extended family or rental income.

Each type of residential property serves a different purpose, catering to buyers with varying financial capabilities, lifestyle preferences, and long-term plans.

Is a Residential Property Always a House?

While houses are the most recognised form of residential property, they are not the only option. In fact, with the rising cost of housing in major Australian cities like Sydney, Melbourne, and Brisbane, many buyers are looking towards more affordable alternatives like apartments and townhouses.
Urban Growth & High-Density Living: With space becoming limited in major cities, high-rise apartments and townhouses are increasing in demand. They provide a practical and often more affordable housing solution, especially for young professionals and small families.
Affordability & Investment Potential: Apartments and townhouses often come at a lower price point than standalone houses, making them attractive to first-home buyers and investors looking for rental income.
Lifestyle Choices: Many Australians prioritise location over property size, choosing to live in well-connected areas with access to public transport, schools, and shopping centres.

This shift in housing preferences highlights the importance of understanding that residential property is more than just a traditional house.

The Role of Residential Sales in the Property Market

Residential sales refer to the buying and selling of properties meant for living purposes. Whether it’s a house, an apartment, or a townhouse, every transaction in the residential property market contributes to Australia’s broader real estate landscape.

Key Factors Influencing Residential Sales

Market Demand & Supply

The availability of housing versus the number of buyers affects property prices. In areas with high demand and limited supply, prices tend to rise, making homeownership more competitive.

Government Policies & Grants

Schemes like the First Home Owner Grant (FHOG) and stamp duty concessions impact residential sales by making homeownership more accessible.

Interest Rates & Lending Policies

Lower interest rates encourage borrowing, increasing property purchases, while higher rates may slow down the market.

Lifestyle & Demographic Trends

Young professionals often prefer apartments close to city centres, while families may opt for houses in suburban areas with more space and amenities.

These factors shape the residential sales market, influencing whether people buy a house, an apartment, or another type of dwelling.

Pros and Cons of Different Residential Properties

Understanding the advantages and disadvantages of different housing types can help buyers make informed decisions.

1. Houses

More space, privacy, and potential for capital growth.
Ability to renovate or extend.
Higher costs (purchase price, maintenance, council rates).
Located further from city centres in most cases.

2. Apartments

Generally more affordable than houses.
Located in prime areas with access to amenities.
Strata fees and regulations apply.
Limited space and less privacy.

3. Townhouses & Duplexes

Balance between affordability and space.
Often include small yards or outdoor areas.
Shared walls may reduce privacy.
Strata management may still apply.

4. Granny Flats & Secondary Dwellings

Great for rental income or multi-generational living.
Cost-effective housing solution.
Limited resale value if not legally subdivided.
Restrictions on renting out in some areas.

Choosing the right type of residential property depends on personal circumstances, financial goals, and lifestyle needs.

Future Trends in Residential Property

The Australian property market continues to evolve, with several key trends shaping the future of residential living:

1. Sustainable & Smart Homes

Energy-efficient designs, solar panels, and smart home technology are becoming increasingly popular among homebuyers.

2. Regional & Suburban Growth

With remote work becoming more common, many Australians are moving away from city centres to more affordable regional areas.

3. Co-Living & Multi-Generational Homes

Shared living arrangements, such as co-living spaces and multi-generational homes, are emerging as practical housing solutions.

4. Build-to-Rent Developments

Purpose-built rental communities are providing long-term, high-quality housing alternatives for renters who prefer flexibility over homeownership.

Conclusion

So, is residential property a house? Not necessarily. While standalone houses remain a fundamental part of the Australian property market, residential property also includes apartments, townhouses, duplexes, and more.
Understanding the different types of residential properties and their roles in residential sales can help buyers and investors navigate the housing market with confidence. Whether purchasing a traditional home, investing in an apartment, or considering a townhouse, the key is to assess affordability, lifestyle preferences, and long-term goals.
As Australia’s housing market continues to evolve, one thing remains clear—residential property is about providing a place to live, no matter the type of dwelling.