For years, the “golden rule” of real estate was that houses outperformed units for capital growth. But 2025 officially flipped the script.
Driven by affordability and a high-demand rental market, units have emerged as the surprise powerhouse of the Perth property scene. If you’ve been overlooking the unit market, here is why you might want to take a second look.
The Great Affordability Pivot
As house prices continued their climb, many buyers shifted their focus to the unit market. This surge in competition pushed unit prices up by an impressive 20.0% in 2025 (reaching a median of $600,000), significantly outpacing the 13.3% growth seen in houses.
REIWA experts suggest this isn’t just a flash in the pan—we expect a similar growth trajectory to continue through 2026.
The Yield Gap is Widening
Investors are flocking to units not just for growth, but for superior cash flow. The yield gap between houses and units has widened to 1.3 percentage points (5.6% for units vs. 4.3% for houses). This is more than double the long-term average difference, making units a highly attractive proposition for those seeking stronger returns.
Which Unit Type Wins?
Not all units are created equal. We’ve broken down the 2025 performance across the four main categories:
| Property Type | 1-Year Price Growth | 5-Year Price Growth | 2025 Rental Yield |
| Home Units | 21.1% | 62.7% | 5.5% |
| Villas | 17.0% | 87.0% | 5.7% |
| Townhouses | 17.6% | 58.4% | 4.9% |
| Apartments | 14.1% | 34.0% | 5.3% |
The Standouts:
- Villas & Home Units: These were the “triple threat” of 2025, offering the strongest price growth, the highest rental yields, and the fastest leasing times (averaging just 14–15 days).
- Villas (Long-Term): If you bought a villa five years ago, your property value has nearly doubled, with a staggering 87% growth since 2020.
- Apartments: While capital growth was lower, apartments saw the most significant yield improvement over the last five years, making them a steady choice for rental income.
The Verdict for 2026
The 2025 data proves that units are no longer just the “affordable alternative”—they are a high-performing asset class in their own right. Whether it’s a single-level villa in the suburbs or a sleek townhouse near the city, the demand for low-maintenance living is resharing the Perth market.
Investor Tip: When choosing a unit, consider the specific category. Home units and villas currently lead the pack for both growth and yield, but results can vary significantly from suburb to suburb.
Curious about the unit potential in your local area? Whether you’re looking to diversify your portfolio or find your first investment, our team can provide a tailored suburb report to help you make an informed move. Contact us today to learn more!
