Micro-Apartments and Urban Density: A New Frontier in Perth Property

Perth’s skyline is changing. As land prices rise and population growth continues, the city is beginning to embrace a new chapter in urban living, micro-apartments and higher-density developments designed to meet the growing demand for affordable housing close to amenities, jobs, and transport.

What Are Micro-Apartments?

Micro-apartments are compact, self-contained units typically measuring between 20 to 35 square metres. They’re cleverly designed to maximise space, often featuring fold-away furniture, built-in storage, and open-plan layouts. These developments have become popular in cities such as Sydney, Melbourne, and internationally in Tokyo and New York, and now, Perth is joining the trend.

Recently, plans for 26 m² micro-apartments in inner Perth were given the green light, sparking conversations about affordability, design innovation, and lifestyle choice.

Why Perth Is Moving Toward Density

Several factors are driving this shift:

• Affordability pressures: Traditional house prices and construction costs have soared, putting home ownership out of reach for many first-home buyers.

• Land supply limits: Perth’s expansion is constrained by infrastructure costs and environmental considerations, pushing development upward rather than outward.

• Sustainability goals: Higher-density living near transport and employment hubs helps reduce urban sprawl and the city’s carbon footprint.

• Lifestyle demand: More professionals and downsizers are seeking low-maintenance living with access to cafes, entertainment, and public transport.

With the State Government’s Targeted Apartment Rebate and infill development incentives, new apartment projects, particularly those near train stations and activity centres, are becoming more viable for developers.

The Benefits and the Debate

Advocates argue that micro-apartments offer:

• Entry-level affordability for first-home buyers.

• Rental stock in locations otherwise unaffordable to live in.

• Greater housing diversity within established suburbs.

However, critics caution that very small units must be well-designed to ensure liveability, access to communal spaces, and long-term value retention. The debate continues about how to balance density with quality of life, but one thing is certain: Perth’s property market is evolving.

What It Means for Buyers and Investors

Micro-apartments may not suit everyone, but they represent a new investment class and an important step toward housing diversity in WA. For investors, they can offer strong yields due to lower entry costs and high rental demand in central areas. For buyers, they provide an affordable path into the Perth market, particularly near Metronet stations and revitalised urban precincts.

As more projects break ground, buyers will have increasing choice across price points and lifestyle preferences, from suburban townhouse developments to compact city-living options.

Navigating Your Next Settlement

If you’re considering buying or selling an apartment in Perth’s growing urban hubs, Adaptive Settlements can guide you through the process. Our team understands the nuances of apartment settlements, from off-the-plan purchases to strata considerations, ensuring your transaction is smooth, compliant, and stress-free.

Get in touch today to learn how we can assist with your next property move.