Our flourishing unit and apartment market

29 July 2023

Booragoon, Mount Pleasant and Melville have offered a windfall to homeowners, with new data showing the suburbs are among Perth’s most lucrative locations for units and apartments.

Real Estate Institute of WA statistics show the three suburbs are among the Top 10 locations for the price growth of units and apartments in Perth in the past year, with Booragoon sustaining a 31% boost, hitting a median price of $687,500.

Similarly, Mount Pleasant and Melville flourished with growth of 20.5% and 13.6% for units in the 2022-2023 financial year. The median unit price in Mount Pleasant is now $735,000, and $567,500 in Melville.

The three suburbs are well above the median unit price of $399,000.

Mont Property Managing Director Matthew Podesta said units and apartments had long been considered as opportunities for buyers to get a foothold in their suburb of choice, without the outlay of a big home.

“Astute investors are seeing the benefits of buying units and apartments in desirable suburbs, and these growth rates for Booragoon, Mount Pleasant and Melville speak for themselves,” Mr Podesta said.

“As housing prices continue on the upward trajectory in Perth, more and more people are realising units and apartments are sound property options with the potential for good growth.

“Historically, units have been a more affordable option for people not wanting a big landholding and all the maintenance that goes with it. Now, buyers are capitalising the unit market as a more affordable option to invest in a good area without having to pay a full-blown price tag for a house.”

REIWA Chief Executive Officer Cath Hart said affordability had been a focus for Perth buyers in the past financial year.

“While buyers have acted swiftly when they found a suitable house, they were also being prudent,” Ms Hart said.

“They’ve seen their borrowing capacity reduced significantly in the past year, so this outcome signals they’re factoring in the possibility of more rate rises and are spending wisely.

“The WA market has seen moderate growth overall and very strong growth in some suburbs, however the rate of growth has slowed over the past 12 months.

“It’s not a concern, as steady growth is preferable to significant jumps in prices.”

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