Why Perth Apartments are Becoming the Investors’ Choice

As investors assess property opportunities, many are taking a closer look at Perth’s growing apartment market. While house and land options remain a strong and reliable investment pathway, apartments across the metropolitan area are increasingly standing out for their relative affordability, contemporary designs and strong rental performance. 

Why apartments are attracting property investors

Affordability relative to detached houses

Median apartment prices in Perth reached approximately $575,000* in the 12 months leading up to October 2025, compared with median house values of around $820,000*. This price gap opens the door for investors to access well-connected suburbs and modern product at a lower entry point. 

Strong rental yields and demand

Recent Urbis research indicates that investors now account for nearly half of all off-the-plan apartment buyers in Australia, the highest proportion in five years highlighting the strong demand for Perth property investment. In Perth, apartments are achieving a gross rental yield of around 6.0–6.2%*, compared with houses at approximately 4.5%*. Vacancy rates remain low, typically near 2%* or below, reflecting persistent tenant demand and a constrained rental market that is eager for an increase in Perth apartments. 

While individual developments will experience different rental outcomes depending on location, design, size and local amenity, these broader market trends highlight why many investors are actively considering new apartment opportunities. Projects still benefit from the strong rental demand seen across the inner-west corridor, even if yields vary from the Perth-wide averages. 

Rental growth and capital upside 

Rent in Perth has continued to rise sharply, with unit rents growing faster than house rents through 2024 and early 2025. This ongoing demand has strengthened rental yields and contributed to improved returns across many established suburbs. Current forecasts indicate that unit/apartment prices may continue to trend upward over the coming years, creating appealing long-term prospects for those considering property investment in Perth. 

For investors buying off-the-plan at Cedar Woods projects like Incontro Apartments in Subiaco, there is the added advantage of securing a property at today’s price with only a deposit payable upfront. While market conditions can change over time, an off-the-plan purchase means the final home is completed in the future, offering the possibility of benefiting from any positive market movement by the time construction is finished. 

Lifestyle shift and tenant appeal

Apartments offer a lifestyle that aligns with the preferences of young professionals, couples and downsizers, offering low-maintenance living close to employment, cafés and public transport. These demographic shifts are sustaining strong tenant demand and underpinning ongoing property investor interest.  

Off-the-plan and infill opportunity

With limited availability of detached land in inner and middle-ring suburbs, off-the-plan apartments in Perth are filling a gap in the market. Investors seeking well-located, design-led projects are able to secure assets that appeal to long-term tenants and align with Perth’s growing focus on urban infill.  

Off-the-plan purchases in Western Australia also offer a significant financial advantage through the current stamp duty concession. Eligible buyers can access a substantial discount on transfer duty for off-the-plan apartment purchases, reducing upfront costs and improving overall investment feasibility. For many investors, this concession provides a meaningful incentive to secure an apartment early in the development cycle while maximising the value of their initial outlay. 

What this means for property investors  

For the investor assessing Perth’s apartment market, the combination of moderate purchase price, healthy rental yields and lifestyle appeal presents a compelling opportunity. Key advantages include:  

• Entry into desirable, well-connected suburbs at a lower price point
• Solid rental income potential supported by rising rents and limited supply
• Potential for capital growth as apartment markets mature
• Strong tenant demand from lifestyle-driven demographics  

Considerations before investing in apartments  

As with any investment, due diligence is essential:  

• Assess body corporate costs and how shared facilities might impact net yield. 
• Review the developer and builder reputation for construction quality and delivery reliability. 
• Confirm finance and valuation expectations with your lender before settlement.
• Consider your target tenant profile and suburb amenity mix to maintain occupancy.  

How Cedar Woods supports apartment investors  

At Cedar Woods, we recognise the evolving apartment investment market in Perth. Our developments are designed to meet modern investor needs through considered architecture, location and community focus.

Explore our WA apartment projects where investment-ready opportunities exist, including Incontro Subiaco. 

*Source: reiwa.com.au