Units vs Houses: Which Perth Investment Outperformed in 2025?

Perth's property market in 2025 presented starkly different opportunities for units and houses, with data now showing which asset class rewarded investors most handsomely over the past 12 months.

Houses have continued to dominate Perth's wealth-creation narrative. Across growth corridors like Joondalup and Wanneroo, median house prices rose solidly, with established suburbs in the $650,000–$750,000 range attracting owner-occupiers and investors alike. A three-bedroom home on a modest 450-square-metre block in Thornlie or Landsdale could be purchased at $620,000 in mid-2024 and resold for $680,000 by June 2026—a $60,000 gain before costs. More importantly, these properties generated strong rental yields in a sub-1% vacancy environment, with weekly rents climbing to $520–$580 for family homes across Perth's outer suburbs.

Units, however, told a more muted story. While Perth's unit market benefited from interstate migration and compact-living demand, particularly along the Swan River corridor and near Northbridge, capital growth lagged houses considerably. A one-bedroom apartment in East Perth or Subiaco purchased at $480,000 in mid-2025 was unlikely to appreciate more than 3–4% annually, though rental yields were marginally stronger at 4.8–5.2% gross. For investors relying on capital gains, this created a headwind.

The rental vacancy crisis favoured both, but houses capitalised more aggressively. With vacancy below 1% across Perth, landlords of three-bedroom homes in Joondalup's new precincts near Lakeside Shopping Centre or Wanneroo's expanding residential zones could command consistent tenant demand and negotiate higher rents confidently. Unit investors faced stiffer competition, particularly in inner-city markets where new apartment blocks added supply pressure.

Costs also shifted the equation. Strata levies for newer units near parks like Bold Park or Burswood continued climbing, averaging $140–$180 per week by mid-2026, eroding net yields. Houses required maintenance but offered more control over expenses.

For Perth investors in 2025, the verdict favoured houses—particularly in growth suburbs where land scarcity and family demand supported both capital growth and rental resilience. Units remain a viable entry point for those with limited capital or seeking inner-city exposure, but the maths favour freestanding homes in the current market cycle.

First-home buyers should note: outer suburbs still offer the strongest total returns, but tight lending conditions mean units remain more accessible for stretched borrowers.

This article was compiled by AI from the sources linked above and screened before publishing. See our editorial standards.