House vs Unit Price Divergence Reshapes Collingwood Real Estate Market

Collingwood’s real estate market is showing a marked split: while house prices continue to soar, unit values are lagging behind, creating the biggest gap between the two segments seen in a decade.

This divergence is drawing close attention from both buyers and sellers. For families eyeing backyards and character homes on Oxford Street, the sustained lift in detached house prices means fierce competition. Meanwhile, unit owners, especially those in blocks near Victoria Parade or the St. Hilda’s precinct, are confronted with unexpectedly stagnant or modestly declining values after years of steady growth.

Collingwood’s Streets Tell the Story

Walk down Smith Street on any weekend and the shift is palpable: auction crowds regularly spill onto the footpath in front of double-fronted weatherboards, while open-for-inspection signs linger longer outside new unit developments at Peel Street and the old MacRobertson chocolate factory site. Local agency Glasshouse Realty has observed increased enquiry for original houses east of Wellington Street, but say unit turnover in the Smith & Church tower has "noticeably slowed" since April.

The region’s heritage zones are a big driver. In the Stanley Parade pocket, renovated houses have attracted bidding wars, with one three-bedroom terrace reported as under contract after just eleven days. By contrast, a two-bedroom apartment in the Stanley Park Residences has been on the market for over six weeks without an offer close to the asking price.

The Numbers: Price Gaps Hit 10-Year High

Collingwood’s median freestanding house price reached $1.52 million last month, according to local registrations-a jump from $1.38 million at the start of this year. Units, however, have reached a median sale price of $655,000, virtually unchanged from early spring. The difference-now approximately $865,000-is the widest it’s been since 2016. The town’s planning office attributes this to renewed demand for more private, larger living spaces, while several major new unit projects delivered in 2022-2025, such as Wickham Place Residences, have increased supply right as rental demand plateaus.

Local buyers point to rapidly rising mortgage repayments and cost-of-living pressures as factors reducing unit appeal, particularly for first-home buyers. At the same time, international student leasing, a major market for high-rise units around Cambridge Terrace in previous years, has only partially recovered from the 2024 downturn, reducing investor interest in the segment.

What Does This Mean for Collingwood?

Experts say this house-unit divide may continue into late 2026 as lifestyle priorities shift and new housing completions reshape the market. For house owners in tightly held streets like Elliott Avenue and Cromwell Street, this could be an opportunity to capitalise on premium prices, provided listings remain low. Unit owners hoping to sell quickly may need to sharpen pricing and marketing, or consider holding off for a broader recovery in the segment.

For prospective buyers, the gap poses a tough choice: fight hard for a house to secure capital gains, or seize softening unit prices as a more affordable entry point. The local council’s housing advisory panel is due to release recommendations on densification and heritage protection later this quarter, which could further influence supply and demand on both sides of the market. Until then, close scrutiny of street-by-street trends remains the Collingwood buyer’s best ally.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.