Perth Unit Types Delivering the Best Returns for Investors in 2025
For years, Perth property investors have leaned toward houses for stronger capital growth.
But in 2025? The market had other ideas.
New data shows units have stepped firmly into the spotlight — delivering stronger price growth and increasingly attractive rental yields. For investors watching affordability, cash flow, and tenant demand, this shift matters more than most realise.
Let’s break down what’s really happening in Perth’s unit market.
Units Outpaced Houses in 2025
Over the year to December 2025:
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Median unit price: $600,000 (↑ 20.0%)
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Median house price: $850,000 (↑ 13.3%)
The key driver? Affordability pressure.
As house prices pushed higher, more buyers — including investors and owner-occupiers — pivoted toward the unit market. Increased competition followed, placing stronger upward pressure on unit prices.
Current market conditions suggest this trend may continue into 2026.
Rental Yields: Units Continue to Lead
Units have traditionally offered stronger rental yields than houses, but the gap has widened.
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2025 house yield: 4.3%
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2025 unit yield: 5.6%
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Current gap: 1.3 percentage points
Five years ago, that difference was just 0.7 percentage points. Today’s wider spread reflects:
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Lower entry prices for units
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Strong rental demand
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Tight vacancy conditions across Perth
For yield-focused investors, that’s not a small shift — it’s structural.
Which Unit Types Performed Best?
The term “unit” covers several very different property types. Performance in 2025 varied depending on the category.
🥇 Capital Growth Leaders (2025)
Home units led the pack:
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Median price: $545,000
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Annual growth: 21.1%
Townhouses followed:
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Annual growth: 17.6%
🕰️ Five-Year Standout
Looking longer term (2020–2025):
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Villas: ↑ 87.0%
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Home units: ↑ 62.7%
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Apartments: ↑ 34.0%
The message is clear — not all units behave the same.
Rental Growth Remains Strong
All unit categories recorded rent increases over the past year.
Top performers (2025):
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Home units: $580/week (↑ 11.5%)
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Villas: $675/week (↑ 8.9%)
Over five years, the numbers are even more striking:
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Home unit rents have more than doubled
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Villa rents have nearly doubled
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Apartments and townhouses also posted strong gains
This sustained rental pressure reflects Perth’s ongoing supply constraints and population growth.
Properties Are Leasing Fast
Demand in the rental market remains extremely tight.
Median time to lease (2025):
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Apartments: 15 days
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Home units: 15 days
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Townhouses: 15 days
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Villas: 14 days
In practical terms? Well-presented properties are still moving quickly across most Perth suburbs.
Yield Winners: Villas and Home Units
When it comes to pure income performance in 2025:
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Villas: 5.7% yield
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Home units: 5.5% yield
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Apartments: 5.3%
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Townhouses: 4.9%
Yields have softened slightly due to strong price growth outpacing rent increases — but they remain historically solid.
What This Means for Perth Investors
If you’re thinking strategically (and you should be), the takeaway isn’t “units beat houses forever.”
It’s this:
The Perth market is fragmenting.
Smart investors are now weighing:
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Entry price vs borrowing capacity
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Yield vs growth balance
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Tenant demand by dwelling type
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Suburb-level performance differences
In the current cycle, villas and home units are showing particularly strong fundamentals — but outcomes will always vary by location and property quality.
Thinking About Your Next Investment?
Broad market trends are useful — but the right investment decision is always local.
Before purchasing, investors should carefully consider:
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Suburb-specific demand
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Vacancy rates
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Comparable rental returns
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Strata considerations
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Long-term growth drivers
Speaking with a knowledgeable local agent can help you interpret how these trends apply to your specific goals.
Author: Suzanne Brown, REIWA President
Source: Australian Property Investor Magazine via REIWA
