Apartments can be a smart investment in today’s market, but only if you choose carefully. The right apartment in the right location can offer solid rental returns and long-term growth. But not all apartments are created equal. Some are hard to rent, harder to sell, and can quietly drain your cash flow. As always, it comes down to picking wisely
The Apartment Investment Debate
Since COVID, the property landscape has shifted again and apartments are back in the spotlight. With house prices climbing and borrowing capacity tightening, more investors are turning to apartments as a more accessible way to get into the market.
At the same time, we’re seeing demand increase in inner-city and lifestyle areas. People are returning to the office, prioritising shorter commutes, and looking for low-maintenance homes. In the right locations, apartments are ticking those boxes and often at a much lower price point than houses.
At Templeton Property, we help buyers understand where apartments make sense in an investment strategy, and how to avoid the ones that don’t.
What Makes Apartments Attractive to Investors?
Affordability: Apartments are usually cheaper than houses in the same suburb, making them an easier entry point for many investors.
Rental Demand: In the right spots, think CBD, university precincts, lifestyle hubs – apartments can rent quickly and consistently.
Lower Maintenance: With a body corporate managing shared areas, owners typically deal with fewer maintenance issues.
Access to Great Locations: Apartments offer a way into blue-chip suburbs without the $1,000,000 + price tag.
Appeal to Modern Lifestyles: Many tenants, especially younger ones, want convenience and amenities, not a backyard.
Key Risks and Downsides of Apartment Investments
Oversupply: Some areas, especially inner-city high-rise zones, have too many similar apartments competing for tenants.
Limited Land Component: Unlike houses, apartments don’t benefit from land value growth, which can cap capital growth over time.
Body Corporate Fees: These can add up, particularly in buildings with lifts, pools, or gyms.
Lower Resale Appeal: Generic or poorly located apartments can struggle to attract buyers when you go to sell.
Renovation Restrictions: There’s limited opportunity to add value through renovations or improvements.
Apartments vs. Houses: Key Differences for Investors
Growth Potential: Houses typically outperform over the long term thanks to land value.
Yield: Apartments often return stronger yields upfront, especially in high-demand rental areas.
Ongoing Care: Houses require more hands-on maintenance; apartments are usually more hands-off.
Tenant Type: Apartments often attract students, young professionals, and singles, while houses draw families.
Ease of Sale: Quality houses can often sell faster and hold value better in softer markets.
Where Are Apartments Performing Well in 2025?
Right now, many apartment markets are running hot, particularly in areas where lifestyle and convenience matter most. In Brisbane, suburbs like West End, Teneriffe and Newstead are attracting strong demand. On the Gold Coast, it’s places like Broadbeach and Burleigh Heads.
And near major universities, student demand remains high.
According to Domain, Brisbane apartment rents have risen by more than 14% year-on-year, with vacancy rates sitting near record lows. That growth is being fuelled by a combination of returning international students, migration and limited new supply.
Strategies for Profitable Apartment Investments
Look Beyond the Towers: Boutique, low-rise complexes often perform better than generic high-rises.
Seek Out Unique Features: Courtyards, balconies, natural light, or unique character appeal can help an apartment stand out.
Do Your Homework on the Body Corporate: Check fees, sinking fund health and any major works planned.
Avoid Over-Supplied Stock: If there are dozens of similar apartments for sale or rent in the building, think twice.
Know What You’re Aiming For: Is your goal high rental yield, long-term capital growth, or a bit of both?
How a Buyer’s Agent Helps You Maximise ROI
When it comes to buying an apartment, details matter. At Templeton Property, we take a hands-on approach, inspecting each property in person, understanding the street, the neighbours, the building, and the local demand.
We act independently, and our only priority is your success as the buyer. Whether you’re investing for cash flow, growth, or a future family home, we help you make decisions based on facts, not sales spin.
So, Are Apartments a Good Investment?
They can be. In a market where affordability is tight and rental demand is high, the right apartment can deliver excellent returns. But success isn’t guaranteed and not every unit on the market is worth your time or money.
A well-located, well-chosen apartment can be a valuable part of an investment strategy. But if you get it wrong, the downsides can stick with you.
If you’re thinking of investing in an apartment and want to make sure you get it right, reach out.
At Templeton Property, we help investors make smart, long-term decisions, backed by local knowledge and experience.
If you’re looking to navigate the property market in Brisbane, Templeton Property is here to assist you every step of the way. With expert knowledge and a personalised approach, our independent buyer’s agents help you make informed decisions and secure the best outcomes for your property purchase journey.
Ready to start your property buying journey? Contact Templeton Property today, and let us help you find the perfect home or investment in Brisbane. You can also explore our blog for valuable industry insights and expert tips.
We look forward to hearing from you.
Sam Price, Buyer’s Agent and Director
