Unit values in six out of 10 suburbs across the capital cities rose faster than houses over the past three months – as much as 11 times faster – driven by strong demand from investors seeking higher rental yields and home buyers looking for affordable options, data from CoreLogic shows.

Slower house price growth and accelerating unit values have narrowed houses’ premium over units to 45.4 per cent, down from 45.6 per cent in the previous three months. During the same period, house prices rose by 1.7 per cent, while units increased by 1.8 per cent.