Older units set to lead Perth’s property surge
As the Perth market continues its growth, buyers have been turning to older unit blocks for more affordable options, with experts forecasting a rise in demand amid falling interest rates.
Amid rising prices across the Perth market, buyers have been turning to older property blocks for more affordable units, according to a property investment strategist.
Managing director of Nu Wealth, Daniel McQuillan, said the demand for older units has increased over the past months and is predicted to continue over the next few years as interest rates drop.
McQuillan said units and apartments in Perth have been the “Cinderella” of the market as buyers’ demand has been more focused on houses.
“As a result, houses have led the charge in price growth in the Perth market over the last four years, with apartments and units lagging.”
The latest REIWA data showed that in April, median house prices in the city of light grew by 1.1 per cent to $775,000, marking a 19.2 per cent increase from April 2024.
Meanwhile, median unit prices rose by 1.7 per cent to $525,000 in April 2025, a 20.7 per cent increase from the same period last year.
Nu Wealth said that despite houses being more popular, price growth has slowed compared to units, due to first home buyers being priced out of freestanding homes.
He said that many first home buyers have been priced out of the Western Australian property market in recent years as eastern states investors, drawn by strong rental returns and capital growth, outbid them with greater borrowing power.
“These market conditions have become more favourable in recent months for first home buyers as activity by eastern states property buyers in WA has waned because rental yields have begun to moderate due to slowing property price increases and rents.”
“It is now generally predicted that there will be several interest rate cuts in Australia over the remainder of this year due to economic uncertainty over the international trade war, especially between China and the USA,” McQuillan said.
As interest rates keep falling, McQuillan said that first-time home buyers will turn to more affordable suburbs and purchase units under the $600,000 price range to ensure high capital growth in the future.
According to Nu Wealth, the city has 10 hotspot suburbs for older apartments, including South Perth, Como, Victoria Park, Lathlain, Rivervale, East Perth, Northbridge, Tuart Hill, Yokine, and Osborne Park.
The property investment firm said that many first-time buyers have been planning to enter the property market, have left their rental property, and turned to either share houses or their family home to save for a deposit.
“In addition, we have had many inquiries from first-time home buyers on how they can use their superannuation to help pay for a home deposit through the First Home Super Saver scheme.”
Western Australia expects to see more vigorous first home buyer activity if interest rates continue to drop and with added incentives like the state’s $210 million Keystart shared-equity scheme.
“The key issue for first home buyers is to get their foot on the property market, and in the current market, a near-new or older one-bedroom apartment in a near and inner city location offers an affordable and sound value for money strategy,” McQuillan concluded.
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