Hi. The short answer is no. It is not causing a problem.
Unfortunately there is a negative stereotype on housing however these are no different to any other rentals on the market.
The positive thing is that the government department will likely act on issued raised quite promptly so I do not think it is a concern. Regarding the effect on home prices, there isn't any indication to suggest that home prices are devalued any different to whether it is located near a "regular" block of units or a housing block of units. If there is an effect, it would be that there is house near a block of units regardless of ownership