Apartments on the Rise
Why Buyers Are Rethinking the Great Aussie Dream
🔹 The classic belief that houses hold the strongest capital growth is being challenged in 2025.
🔹 Apartments are stepping into the spotlight—and in many suburbs, they’re outperforming houses.
Recent research from Nuestar and Hotspotting shows a shift in buyer priorities, with 62.9% of apartment markets across Australia recording the same or higher price growth than houses in the 12 months to May 2025.
What’s Driving the Shift?
🔹 Affordability – As house prices continue to climb, apartments offer a more accessible entry point for buyers and investors alike.
🔹 Lifestyle & Location – Proximity to urban hubs, work, and amenities makes apartment living more attractive than ever.
🔹 Modern Appeal – Developers are delivering high-quality apartments with design-forward interiors, luxury finishes, and resort-style amenities.
WA in Focus
Here in WA, the trend is clear.
📍 Como – Unit prices jumped 27% year-on-year, outpacing houses which grew 21%.
📍 Maylands – Apartments saw a 21% increase, compared to 16% for houses.
💰 Yields for apartments in these areas are also stronger—averaging 6.5% versus 3.9% for houses.
With vacancy rates at record lows and strong rental demand, apartments are becoming the smarter option for investors and owner-occupiers alike.
What This Means for You
Whether you're looking to invest, downsize, or purchase your first home, apartments in the right location offer:
🔹 Better rental returns
🔹 Competitive capital growth
🔹 Lower upfront costs
🔹 Lock-and-leave lifestyle
As the property landscape evolves, it’s worth considering the apartment market—not as a compromise, but as a strategic move.
Article adapted from a piece by Catherine Nikas-Boulos, originally published on Elite Agent. Read the full article here.
