Perth continues to be an attractive destination for property investors, thanks to its relative affordability and promising rental yields. While we recently explored how different unit types performed, this month we’re shifting our focus to houses – a perennial favourite for many looking for strong capital growth.
Historically, houses have outpaced units in capital growth, with units typically offering better rental yields. However, the past year has shown some interesting shifts.
Capital Growth: A Tale of Two Timelines
In the year to May 2025, we saw a surprising turn: median unit sale price growth actually exceeded median house sale price growth (21% for units compared to 18% for houses). This is a notable short-term trend.
However, when we zoom out to a five-year period, the long-term strength of houses becomes clear. Over the past five years, houses saw significantly stronger growth, with median sale prices increasing by 63%, while units rose by 39%. This reinforces the traditional view of houses as a robust long-term growth asset.
Yields: A Slight Softening
Reflecting the strong sale price growth compared to an easing in rent price growth, yields for both houses and units have softened over the past 12 months:
- House yields eased from 4.9% in May 2024 to 4.5% in May 2025.
- Unit yields also declined, from 6.5% a year ago to 6.2% in May 2025.
Investor Sweet Spots: Breaking Down House Performance by Type and Size
To help you make more informed investment decisions, we’ve delved into the performance of different house types (defined as a freestanding dwelling) and duplexes (one of two dwellings sharing a common wall/s) by the number of bedrooms.
Capital Growth Champions (Year to May 2025)
All house types enjoyed capital growth over the last year, but some truly stood out:
- Two-bedroom duplexes recorded the highest annual increase, soaring 22.3% to a median sale price of $615,000.
- Two-bedroom houses were close behind, increasing 21.2% to $665,000.
Over the longer five-year period, six-bedroom houses delivered an astonishing performance, doubling in value (up 100%) to reach a median sale price of $1,550,000. This highlights the significant capital appreciation potential in larger family homes.
| Property Type | Median Sale Price (May 2025) | 1-Year Change | 5-Year Change |
| Duplex 2 Bed | $615,000 | 22.3% | 66.2% |
| Duplex 3 Bed | $665,000 | 19.0% | 71.6% |
| House 2 Bed | $800,000 | 21.2% | 52.4% |
| House 3 Bed | $720,000 | 19.9% | 67.8% |
| House 4 Bed | $843,000 | 16.8% | 68.6% |
| House 5 Bed | $1,275,000 | 20.9% | 71.7% |
| House 6 Bed | $1,550,000 | 19.2% | 100.0% |
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Strong Rental Price Growth
Median weekly rents saw increases across all house types over the 12 months to May 2025.
- Three-bedroom duplexes led the charge with a 12.7% rise to $620 per week.
- Three-bedroom houses followed closely, increasing 12.1% to $650 per week.
Looking back over five years (May 2020 to May 2025), median rents for all house types rose significantly, with two and three-bedroom houses and duplexes recording the largest increases, showcasing robust demand for these sizes.
| Property Type | Median Weekly Rent (May 2025) | 1-Year Change | 5-Year Change |
| Duplex 2 Bed | $525 | 9.4% | 87.5% |
| Duplex 3 Bed | $620 | 12.7% | 87.9% |
| House 2 Bed | $580 | 8.4% | 93.3% |
| House 3 Bed | $650 | 12.1% | 91.2% |
| House 4 Bed | $700 | 6.1% | 70.7% |
| House 5 Bed | $880 | 3.5% | 60.0% |
| House 6 Bed | $1,075 | 7.5% | 79.2% |
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Fast Leasing Times
While leasing times have slightly increased for most house types in the past year, they remain remarkably low compared to 2020 levels, indicating a still-tight rental market.
- Two-bedroom houses were the quickest to lease in the year to May 2025, with a median of just 14 days.
- Two-bedroom duplexes followed at 15 days, and three-bedroom houses at 16 days.
| Property Type | Median Time to Lease (Days) (May 2025) | 1-Year Change | 5-Year Change |
| Duplex 2 Bed | 15 | 3 | -18 |
| Duplex 3 Bed | 17 | 4 | -15 |
| House 2 Bed | 14 | 0 | -14 |
| House 3 Bed | 16 | 1 | -13 |
| House 4 Bed | 19 | 2 | -11 |
| House 5 Bed | 20 | -1 | -11 |
| House 6 Bed | 21 | 4 | -18 |
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Current Rental Yields
While yields eased over the past year, some property types are still delivering solid returns:
- Three-bedroom duplexes recorded the strongest yield in the year to May 2025 at 4.8%.
- Three-bedroom houses were close behind, with a yield of 4.7%.
| Property Type | Yield (May 2025) | Yield (May 2024) | Yield (May 2020) |
| Duplex 2 Bed | 4.4% | 5.0% | 3.9% |
| Duplex 3 Bed | 4.8% | 5.1% | 4.4% |
| House 2 Bed | 3.8% | 4.2% | 3.0% |
| House 3 Bed | 4.7% | 5.0% | 4.1% |
| House 4 Bed | 4.3% | 4.8% | 4.3% |
| House 5 Bed | 3.6% | 4.2% | 3.9% |
| House 6 Bed | 3.6% | 4.0% | 4.0% |
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Key Takeaways for Investors
Our analysis shows that while different house types offer varied outcomes, two and three-bedroom houses and duplexes consistently rank among the top performers across various categories, including capital growth, rent price growth, and quick leasing times.
It’s crucial to remember that this is general market information. Successful investing requires thorough individual research, considering factors like sale and rent price growth, rental yield, and overall rental demand for specific property types and areas that align with your personal investment strategy. Market conditions can vary significantly from suburb to suburb.
Ready to explore your investment options in Perth? Our experienced local agents have in-depth knowledge of current market activity and can provide tailored advice to help you make an informed decision. Contact us today!