There is a theory in property circles that the cost of apartments rise slower than houses and the...
There is a theory in property circles that the cost of apartments rise slower than houses and the larger the property is the greater the capital growth will be. If this was the case we would expect detached properties to have risen more frequently at a greater rate than apartments or terraced houses. National data on this is available from Land Registry so I decided to investigate.
Over the last five years the average sale price for properties has risen by 11%. Apartments have increased by 14% and detached by 12%, terraced by 9%. In that period, an apartment would have increased in value more than a detached house. Over a longer term of 19 years (when the land registry dates back to), house prices have increased by 191% with detached and semi's increasing by 198%, terraced by 177% and apartments at 191% too. Terraced houses have appeared to be constantly outperformed by other types of property.
They have only increased by a small volume compared to the average regional price performance. If you choose a property in an area with a good rental yield it is more important than if you choose to invest in a detached or semi.