New data from Domain has revealed that it‘s now cheaper to buy a unit than rent in 82.9% of Perth suburbs, making Western Australia’s capital the most affordable city in the country for aspiring home owners.
The rent vs buy analysis compared median mortgage repayments to current rents across the country, using a 20% deposit and an interest rate of 5.68% as the baseline. While the national average shows just 22.8% of suburbs favouring buying units over renting, Perth far outpaces the other capitals.
National results
In comparison to Perth, cities like Sydney and Melbourne remain more skewed towards renting. Sydney, for example, did not have a single suburb where it was cheaper to buy a house, and only 9.5% of suburbs where unit ownership was more affordable than renting.
Melbourne performed slightly better at 19.7% for units. Meanwhile, Adelaide and Brisbane recorded just 13.3% and 7.9% of suburbs, respectively, where it was cheaper to buy a unit than rent.
Units offer a more affordable, low-maintenance entry point
The standout result for Perth is driven in part by the relative affordability of units compared to houses. The median value of a unit in Perth was $611,755 in June 2025, according to Cotality. In contrast, a median-priced house was $855,395 – more than $200,000 more.
This significant price gap makes units a more attainable option for buyers looking to enter the market without overextending financially.
Units also typically require less ongoing maintenance than houses, which can further reduce the overall cost of ownership. Strata-titled properties often include shared building maintenance and insurance costs, meaning owners aren’t solely responsible for exterior repairs or large-scale structural upkeep.
This can be particularly appealing to time-poor buyers who may not be available to spend time on maintaining a standalone house.
However, buyers should also be aware of the potential trade-offs. Strata fees can vary significantly and may add a considerable cost over time. Units also tend to offer less flexibility when it comes to customisation or renovations, with owners likely needing strata approval for structural changes or upgrades. This can be a drawback for those who want to personalise their space or add value through renovations.
Stronger returns and growth potential for investors
Capital growth trends are also swinging in favour of units. Cotality data shows that Perth units have recorded 11.3% annual price growth in June 2025, outperforming houses, which saw 6.5% growth over the same period.
While this short-term data reflects current market conditions, including affordability constraints and rising demand for lower-cost dwellings, it doesn’t necessarily indicate that units will outperform houses over the long term. That said, well-located units in tightly held suburbs or those with strong rental demand can still deliver solid capital growth and remain a popular entry point for investors.
Units can also offer a stronger return. According to Cotality, the average gross rental yield for Perth units is currently 5.6%, compared to 4.1% for houses. This higher yield, combined with lower entry and upkeep costs, can make units a compelling option for those seeking better cash flow and long-term value.
Looking to take advantage of Perth’s unit market? As a local buyer’s agent, Resolve Property Solutions specialises in helping clients secure the right property at the right price. Book a free discovery call today and get expert guidance tailored to your goals.
