Unit to House Value Comparison (U2H®)

What is the U2H?

U2H stands for Unit to House value comparison. The U2H is a score out of 100 representing the level of likely imbalance between the price of houses and units in a suburb.

Sometimes the price of units can get too high, making houses better value for money. The reverse is also possible. Good investing is quite often a case of capitalising on such imbalances.

The nature of properties is considered in the valuing technique:

  • Bedroom count
  • Bathroom count
  • Parking spaces
  • Internal size
  • Land size
  • And of course typical values

If the U2H is high for a unit market, it means they are good value compared to houses in the same suburb. However, the U2H will be low for a housing market if prices represent good value compared to units in the same suburb. In other words, a good score is a low one when looking at houses and a good score is a high one when looking at units.

Why is the U2H important?

The U2H can add weight to the potential a property market has to experience strong growth. It is another statistic that investors should consider.

Analysing a property market from every angle and seeing positive signs from all of them will give the investor more confidence about the nature of the market.

The U2H is one of the statistics incorporated into the DSR+.

Is the U2H reliable?

An accurate U2H requires:

  • A large sample size of properties
  • Reasonably consistent quality and nature of each property type

If a market is thinly traded or if there is a varied mixture of 1, 2 and 3 bedroom apartments or houses on acreage mixed with houses on small blocks, then the U2H figure can become inaccurate. Check the nature of typical properties of each type closely on real estate portals to be sure.

Base data and other sources

Some alternative sources for this kind of data include: