Perth property buyers discovering apartment appeal

While industry and media attention remain focused on detached house sales, other dwellings – including apartments, townhouses and terrace homes – are delivering superior returns and attracting an expanding buyer base.

REIWA data shows other dwellings achieved annual price growth of 19.4 per cent in the year to the end of March, compared to 14.5 per cent for houses, with quarterly growth of 2.8 per cent against a one per cent decline for houses.

The affordability advantage driving this trend cannot be overstated. With other dwellings maintaining a median price of $555,000 against $790,000 for houses, these properties offer accessible entry points into Perth’s historically competitive property market.

This affordability premium becomes particularly pronounced in areas close to the Perth CBD and lifestyle attractions, where apartments, units and townhouses can leverage locational advantages that standalone houses cannot match.

Rental market data reinforces this opportunity. Two-bedroom other dwellings now command the same weekly rent as three-bedroom houses at $650 per week, representing remarkable rental yield potential.

This rental parity suggests apartment developments can deliver superior returns on investment while meeting genuine market demand for affordable, well-located accommodation.

The latest data from Cotality also writes the story for other dwellings, with Perth units achieving 11.3 per cent annual growth compared to 6.5 per cent for houses in the year to the end of June, while delivering superior rental yields of 5.6 per cent versus 4.1 per cent for houses.

The performance differential demonstrates that apartment developments can deliver superior returns on investment while meeting genuine market demand for affordable accommodation.

Perth’s changing demographics support this apartment-focused development strategy. Population growth continues, yet new home completions remain relatively constrained.

Apartments and higher-density housing offer the most efficient solution to this supply-demand imbalance. The geographical distribution of growth further validates apartment development potential.

Civic Heart by Finbar

REIWA’s data showed Perth Inner recorded 14.1 per cent annual growth for other dwellings, demonstrating sustained demand for higher-density housing in prime locations.

Even Perth Outer, which is traditionally house-dominated, achieved 18 per cent growth for other dwellings, suggesting apartment acceptance extends beyond inner-city boundaries.

Market conditions now favour apartment development across multiple fronts – affordability constraints are pushing buyers toward alternatives to traditional houses, rental yields are competitive, and, most importantly, owner-occupiers are choosing the amenity and location that sky-high living has to offer.

The strong performance of other dwellings indicates a sustained shift towards housing diversity that reflects modern urban living preferences.

If you're interested in investing in a Perth apartment, look no further than WA's largest and most trusted developer, Finbar. With 30 years on the ASX, 79 completed developments and 7,400+ apartments delivered to the Western Australian market, Finbar isn't just a developer; they're a part of the city's foundation.

To find out more about Finbar's current development, visit https://www.finbar.com.au/