House or unit, the levy that decides which costs less to run
More first home buyers are looking at units and townhouses. A unit usually costs less to buy, but the yearly bills are a separate question, and one line decides it: the body corporate levy. This study works out, for 1,736 suburbs across three cities, how big that levy can be before a unit costs more to run than a house in the same suburb.
In the same suburb, a unit saves the house's building insurance, because the body corporate insures the building, and some electricity. In Brisbane City it pays a higher minimum rate. Add those up and the body corporate levy has to stay under a median $2,459 a year in Greater Brisbane, $2,283 in Greater Sydney and $2,192 in Greater Melbourne for the unit to cost less to run than the house. That is about $550 to $600 a quarter. Above that, the unit costs more to run, whatever it costs to buy.
Key statistics
- Break-even levy, Greater Brisbane
- $2,459/yr
- Break-even levy, Greater Sydney
- $2,283/yr
- Break-even levy, Greater Melbourne
- $2,192/yr
- Per quarter, roughly
- $550 to $600
Medians across suburbs, two-person household. Building insurance is an estimate for a standard house.
What changes when the home is a unit
Take a house and a unit in the same suburb. The water bill and the trip to work are the same in our figures, and both owners insure their contents. Three lines differ.
- Building insurance. The house owner pays it. For a unit the body corporate insures the building and charges it back through the levy, so the unit owner saves the house's premium.
- Electricity. A unit uses less power. We take it as three quarters of a house's use, at the same supply charge.
- Council rates. Brisbane City Council charges units a higher minimum rate, and Moreton Bay's depends on the complex. Elsewhere the rules differ, which the sections below explain.
The unit's savings, less any higher rates, are what the levy has to fit inside. We call that the break-even levy.
| City | Suburbs | Building insurance saved (estimate, median) | Electricity saved (median) | Higher unit rates | Break-even levy (median) | Middle 80% of suburbs |
|---|---|---|---|---|---|---|
| Greater Brisbane | 443 | $2,150 | $359 | By council, see below | $2,459 | $1,909 to $2,759 |
| Greater Sydney | 760 | $1,850 | $433 | Not modelled, see below | $2,283 | $1,983 to $2,783 |
| Greater Melbourne | 533 | $1,850 | $333 | Not modelled, see below | $2,192 | $1,837 to $2,581 |
Each city stands on its own. Rates follow different rules in each state, so the cities are not ranked against each other.
How close is a real levy to that line? SuburbCost's own AI estimate of a typical levy, shown on every suburb page and labelled as an estimate, is a median $2,400 in Brisbane, $2,300 in Sydney and $2,100 in Melbourne. It sits above the break-even in 46% of Brisbane suburbs, 42% of Sydney suburbs and 51% of Melbourne suburbs. In a typical suburb the answer could go either way, so the levy notice decides it.
These figures assume a typical household and commute. Pick a suburb you like and see the nearby ones where a unit costs less to run →
Greater Brisbane, council by council
Brisbane City Council sets a minimum general rate for an owner-occupied unit in a community titles scheme $188 a year above the house minimum. That comes off the unit's savings. Moreton Bay sets the unit minimum by the land value per square metre of the whole complex, from $131 less to $523 more than a house, so the table shows Moreton Bay's break-even at the house minimum and the notice decides the rest. Ipswich, Logan and Redland charge the same minimum for a unit as for a house.
| Council | Suburbs | Unit minimum rate | Building insurance saved (estimate, median) | Break-even levy (median) |
|---|---|---|---|---|
| Brisbane City Council | 193 | $188 more | $2,150 | $2,321 |
| Moreton Bay Regional Council | 91 | $131 less to $523 more, by the complex's land value | $2,150 | $2,509 |
| Ipswich City Council | 73 | Same as a house | $2,150 | $2,509 |
| Logan City Council | 64 | Same as a house | $2,150 | $2,509 |
| Redland City Council | 22 | Same as a house | $2,200 | $2,559 |
Minimum general rates for owner-occupiers, 2026-27, excluding waste and other charges.
Sydney and Melbourne rates
In New South Wales a unit is rated on its share of the land value, and in Victoria on the unit's own value, so a unit often pays less than a house in the same street. Our suburb figure is one number for both, so the break-even leaves rates out. Where the unit's rates are lower, the unit can carry a slightly higher levy than the table shows and still cost less to run.
Where the break-even is higher
The break-even follows the building insurance. In suburbs where insurance is dearer, often because of flood risk, the unit saves more by not paying it. That does not make units there a better deal: the body corporate insures the same kind of risk, and its premium, paid through the levy, tends to be higher too. The $1,909 to $2,759 spread in Greater Brisbane, for example, is mostly an insurance spread.
Townhouses
Many townhouses sit in a body corporate too. Whether the levy covers insurance on the building depends on the scheme, and some schemes leave each owner to insure their own home. If the owner insures the building, the townhouse saves little on insurance and this break-even does not apply. Ask who insures the building before you compare.
Before you compare a real levy
- Read the repair fund, not just the levy. A low levy with a thin repair fund can mean a special levy later.
- Check what the levy includes. Some schemes charge water or hot water through the levy, which changes the comparison.
- Get the documents. In Queensland, the body corporate certificate. In New South Wales, a strata inspection report. In Victoria, the owners corporation certificate in the Section 32 statement.
- Get insurance quotes for the house. Our building insurance figure is an estimate for a standard house, not a quote.
Method and sources
For each suburb, break-even levy = estimated building insurance for a house + (house electricity less unit electricity) − any higher unit minimum rate. Medians are across suburbs. Water, commute and contents insurance are left out because they are the same for both homes in our figures.
- Building insurance: SuburbCost's estimate for a standard $600,000 house, from ACCC 2026 premium rates per $100,000 insured. See the methodology.
- Electricity: Australian Energy Regulator residential benchmarks for a two-person household in the suburb's climate zone, at 2026-27 regulated prices for its network. A unit is taken as using three quarters of a house's power.
- Council rates: 2026-27 minimum general rates for owner-occupied houses and community titles scheme units, read from each Greater Brisbane council's rating categories (Brisbane City rating resolution, Ipswich and Logan budgets, Moreton Bay budget, Redland revenue statement).
- Cities: Greater Brisbane's five councils (443 suburbs), Greater Sydney's 32 councils (760) and Greater Melbourne (533).
Frequently asked questions
Is a unit cheaper to run than a house?
Only when its body corporate levy is low enough. A unit saves the building insurance, which the levy pays instead, and uses less electricity. In the middle suburb of each city those savings come to $2,459 a year in Greater Brisbane, $2,283 a year in Greater Sydney and $2,192 a year in Greater Melbourne. A levy above that makes the unit dearer to run than a house in the same suburb.
What does a body corporate levy pay for?
Insurance on the building and common areas, cleaning and gardens, common area power, management fees, and a fund for future repairs. In Queensland that fund is the sinking fund, in New South Wales the capital works fund and in Victoria the maintenance fund. A low levy can mean the repair fund is short, so read the fund balance as well as the levy.
Do units pay lower council rates?
It depends on the state and the council. In Greater Brisbane, Brisbane City Council's minimum rate for an owner-occupied unit in a community titles scheme is $188 a year above the house minimum. Moreton Bay sets the unit minimum by the land value of the whole complex, from $131 less to $523 more than a house. Ipswich, Logan and Redland charge the same minimum for both. In New South Wales a unit is rated on its share of the land value, and in Victoria on the unit's own value, so a unit often pays less than a house. Check the rates notice for the property.
How do I find out a unit's levy before buying?
In Queensland, ask for the body corporate certificate. In New South Wales, get a strata inspection report. In Victoria, read the owners corporation certificate in the Section 32 vendor statement. Each shows the levies and the repair fund.
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