Are Units Worth a Second Look? A Closer Look at Yield and Growth in Perth’s Market
By Brett White, Managing Director – RE/MAX Extreme
In Perth’s current property landscape—particularly across our northern suburbs—the conversation is shifting. While houses have historically delivered stronger capital growth, units are catching the attention of savvy investors, thanks to their impressive rental yields and growing demand. In a market where affordability and returns matter more than ever, units might just be the opportunity you’ve overlooked.
Rental Yields: Units vs Houses in Perth
Five years ago, the rental yield difference between houses and units in Perth was minimal—just 0.4%. Fast forward to the year ending March 2025, and that gap has widened significantly. Units across Perth are now offering an average gross rental yield of 6.2%, compared to 4.5% for houses.
In areas like Joondalup, Clarkson, and Currambine, we’re seeing this play out on the ground, with villas and home units especially standing out for their balance of affordability and investor returns.
Which Unit Types Are Outperforming?
Not all units are created equal. When we break it down, four distinct types dominate the Perth market: apartments, home units, townhouses, and villas.
- Villas led the pack over the past 12 months, with median sale prices jumping 25.6% to $550,000.
- Home units weren’t far behind, with a 22.1% increase to $470,000.
- Townhouses grew by 15.7%, reaching $700,000.
- Apartments saw more moderate growth at 11.9% (to $581,750).
Over the past five years, villas have delivered the strongest capital growth, rising 69.2%, while home units gained 44.6%. Apartments, while delivering solid rental returns, have shown more subdued price growth at 14.1%.
Weekly Rent Growth Across Perth
Rental demand continues to surge across the city, especially in high-demand pockets in the north. Since March 2020, median weekly rents have doubled for both home units and villas.
- Villas: $650/week (up 18.2% YoY, 103.1% over 5 years)
- Home units: $550/week (up 22.2% YoY, 103.7% over 5 years)
- Apartments: $640/week (up 14.3% YoY, 82.9% over 5 years)
- Townhouses: $720/week (up 10.8% YoY, 80.0% over 5 years)
Leasing Times Still Low
Rental competition remains high in Perth. Villas and home units are being leased in a median of just 14 days, with apartments and townhouses close behind at 15 days—well under the 30-day mark from 2020.
Yields Remain Strong
For those prioritising cash flow, villas and home units continue to deliver excellent results:
- Home units and villas: 6.1% yield
- Apartments: 5.7%
- Townhouses: 5.3%
Interestingly, apartment yields have improved the most over five years, reflecting their slower price growth but increasing rental appeal.
Final Thoughts: Opportunities in Perth’s Unit Market
Villas and home units are currently ticking all the right boxes—capital growth, rental growth, yield, and low days on market. If you’re considering a property investment in Perth’s northern suburbs, these types are well worth your consideration.
As always, success in real estate hinges on more than data alone. Each suburb has its own nuances. Whether you’re looking in Butler, Alkimos, or Edgewater, working with a local expert can make all the difference.
At RE/MAX Extreme, we’re on the ground every day helping investors understand what’s performing and why. If you’re looking for insights into where the best opportunities are right now, we’re here to help.
Unit Type Definitions (for Perth Buyers)
- Apartment: Multi-storey dwellings with no private outdoor space; typically with shared entries and amenities.
- Home Unit: Single-level dwellings in low-rise buildings (1–2 storeys).
- Townhouse: Multi-storey residences with private outdoor areas and no neighbours above or below.
- Villa: Ground-level homes in a multi-unit complex, offering private yards with no adjoining upper-level units.
Disclaimer: This article is general in nature. Always seek professional advice tailored to your situation before making investment decisions.
Source: REIWA (Real Estate Institute of Western Australia)