The teenager died after in hospital after the assault in a flat in Plynlimon House in Long Bridge street on Saturday morning.
He was flown to hospital in Shrewsbury by air ambulance.
Dyfed-Powys Police said the 20-year-old man is under arrest and in custody. They are appealing for witnesses.
Officers were called to the flat at 1155 BST on Saturday after reports of an assault.
A police spokesperson said the man's next-of-kin have been advised and are being supported by police family liaison officers.
The coroner has also been informed.
Anyone who witnessed the incident, or may have information which could help the investigation, is asked to contact police on 101(01267 222020 from outside the force area) or Crimestoppers on 0800 555 111.
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