If you thought Perth was hot property, check out regional WA

Bunbury was the top performing regional centre in Western Australia for the March 2024 quarter, according to the latest data from REIWA.

Its median house price rose 5.9 per cent to $487,000, up from $460,000 in the December quarter.

REIWA President Joe White said there was strong activity across all price points in the Bunbury regional centre, but the market was particularly competitive for houses priced around $600,000.

“Bunbury is attracting interest from a wide range of buyers including east coast investors, first home buyers looking to exit the rental market, and people from Perth or other regional centres looking for a lifestyle change,” he said.

“Our members aren’t expecting a slow-down over winter and are forecasting strong growth over the next quarter.”

Houses in Bunbury sold in a median of 11 days during the March quarter, which was one day faster than the December quarter and 14 days quicker than a year ago.

“Properties are selling very quickly, and well-priced homes are getting enquiries as soon as they come to the market,” Mr White said.

“While the upper end of the market remains buoyant, higher priced properties are starting to take longer to sell.

“This is a trend across a number of regions. Our members in Albany, Busselton, Esperance and Kalgoorlie-Boulder report that homes in the low and middle price ranges continue to sell quickly, while there is a softening in the higher price brackets.

“Affordability remains a key factor for buyers across all regions.”

Eight of the regional centres recorded price growth over the quarter. Karratha was the only regional centre where the median house price declined.

Annually, Port Hedland saw the highest growth, with the median house price rising 15.5 per cent to $540,000. Bunbury was the state’s second best performer, recording 14.6 per cent growth over the year.

Regional WA’s hot rental market

Looking at the rental market, four regional centres recorded an increase in their median weekly rent over the quarter. Three remained unchanged and two saw a decline.

Broome led the rental market over the March 2024 quarter, with its median weekly rent increasing 9.5 per cent to $1,150 per week.

Mr White said the opening of the Thunderbird mine site had brought additional people to the area in recent months.

“The mine has seen people move to Broome for employment opportunities, which has boosted the demand for rentals and put upward pressure on prices,” he said.

“However, as renting becomes less affordable, people are electing to buy instead, which in turn puts pressure on sale prices.

“This is common trend across many of the regions, and Perth.” 

Regional workers struggle to find homes

Albany was the second top performing regional centre over the March quarter, with its median weekly rent increasing 8.7 per cent to $500.

Mr White said the shortage of rental properties remained a significant challenge in meeting demand.

“Our members report alternative living arrangements are becoming more common, with an increase in share-housing and people moving back into the family home to cope with rising prices and the lack of available properties,” he said.

“This trend is extending to caravan parks, which are now at maximum capacity to accommodate the demand for housing.

“The shortage of homes is not only affecting residents but also putting a strain on employers and impacting the supply of services.

“For example, people are eager to relocate to Albany to take up job opportunities but are unable to find a somewhere to live.

“Doctors, nurses, police and hospitality workers are willing to address staffing shortages in the area, but securing housing for them remains a critical issue.

“Some businesses in the hospitality sector have had to reduce their opening hours as they don’t have enough staff to operate seven days a week.” 

Annually, all regions recorded an increase in their median rent.