3 July 2011
Last updated at 12:02 ET
Lewis Clarke, 18 and from Newtown, died in hospital after the assault at Plynlimon House in Long Bridge Street.
He was flown to hospital in Shrewsbury by air ambulance.
Dyfed-Powys Police said the 20-year-old man, who is also from Newtown, remains in custody. They are appealing for witnesses.
Officers were called at 1155 BST on Saturday after reports of an assault.
Police said a post mortem examination will be carried out on Monday.
Meanwhile, the property remains cordoned off.
Det Ch Insp Shane Williams, who is leading the investigation, said: “Although we have made an arrest we are still keen to speak to anyone who has information that could help the investigation into the tragic death of this young person.
“We would especially like to speak to anyone who was in the flat yesterday morning.”
Contact the incident room on 101 (01267 222020 from outside the force area) or Crimestoppers on 0800 555111.
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