Interstate buyers help push up regional WA prices

Regional WA property prices and rents grew in the June 2023 quarter, with Port Hedland the top performer as its median house price rose 6.1 per cent to $498,500.

REIWA President Joe White said Port Hedland was seeing a lot of activity at the more affordable end of the market.

“Demand is higher in the $250,000-$400,000 price bracket and properties are selling quickly, while $600,000-$700,000 family homes are taking longer to sell.

“Both local owner occupiers and interstate investors are active in the market.

“New South Wales investors, in particular, are increasingly interested in Port Hedland, seeking to capitalise on the significant range of new infrastructure and resource projects underway that will boost employment and the need for accommodation.”

Source: REIWA, Landgate. Based on information available at the time of compilation and is subject to revision.

As with most of the regions, increasing costs and delays in the building industry were supporting demand in the established homes market.

“People interested in building are finding it hard to get a definitive cost and timeframe for a new home,” Mr White said.

“It’s often cheaper and more convenient to purchase an existing property.”

Eight of the nine regional centres recorded price growth over the quarter. Tourism hotspot Broome was the only regional centre where the median house price declined.

Source: REIWA, Landgate. Based on information available at the time of compilation and is subject to revision.

“This may seem like a concern in a market where other centres are seeing increases, but potential investors should always look at the bigger picture and speak to agents on the ground,” Mr White said.

“Broome may have recorded a 1.5 per cent fall over the quarter and year, but our members say the drop is more a reflection of fewer properties available for sale in the higher price brackets and therefore less sales at those price points.”

Last quarter’s top performing regional centre, Albany, was this quarter’s second highest performer with its median house price rising 2.1 per cent to $480,000.

Annually, Albany recorded the most growth. Its median house price rose 10.3 per cent over the year. Busselton was the next best performer with a 10.0 per cent increase in its median house price.

Source: REIWA, Landgate. Based on information available at the time of compilation and is subject to revision.

Mr White said there was often a focus on the lack of supply in the Perth market, but demand was high across WA, with properties selling quickly and the number of active listings, those advertised on reiwa.com, had generally decreased year on year.  

“In most regional centres, active listings have shown a significant decline,” he said.

At the end of the June 2023 quarter, active listings in Albany declined 42 per cent over the year. Broome was down 32 per cent, Bunbury was down 41 per cent, Busselton was down 40 per cent, Esperance was down 25.5 per cent, Geraldton was down 24 per cent, Port Hedland was down 16 per cent and across the rest of WA active listings were down 23 per cent.

Source: REIWA, Landgate. Based on information available at the time of compilation and is subject to revision.

“Kalgoorlie showed more stability, with active listings down just 2.6 per cent, while Karratha recorded an increase in active listings, up 73 per cent over the year.”

Source: REIWA, Landgate. Based on information available at the time of compilation and is subject to revision.

WA's regional rental market

In the rental market, seven regional centres recorded an increase in the median weekly rent over the quarter. One remained unchanged and one saw a decline.

Esperance saw the most growth, with the median weekly rent increasing 26.9 per cent to $425. It was the highest quarterly change for the region since reiwa.com records began in 2007.

“As with all regional centres, rental conditions are very tight in Esperance,” Mr White said.

“Investors have sold their properties and they are being purchased by owner occupiers rather than other investors. It’s a common occurrence across the state.

“This gap between supply and demand continues to put pressure on rent prices.”

Source: REIWA, Landgate. Based on information available at the time of compilation and is subject to revision.

Karratha was the second top performer for rent growth. It recorded an increase of 17.6 per cent over the quarter, with its median rent rising to $1,000 per week, however this is still well below the peak of $1,750 recorded in the December 2011 quarter.

All regional centres saw rents increase over the year. Karratha saw the most growth at 29.9 per cent followed by Broome at 28.2 per cent.

The number of properties available for rent remained low across the regional centres.

“We talk about Perth only having about 1,800 properties available for rent, but some of the regional centres had less than 10 available at the end of the quarter,” Mr White said.

WA’s regions are seeing strong investment in infrastructure and resource projects, which is boosting employment opportunities. Mr White said the low number of regional listings meant employers faced a significant challenge in housing their staff.

“Regional employers are having to find innovative solutions to house employees amid the tight rental conditions,” he said.

“Members have reported several instances of large organisations purchasing motel accommodation to house their workers,” he said.

“We’re also aware of a local shire and small businesses purchasing investment properties for their workers to live in.

“There is a lot of demand in the regions and they do provide good investment opportunities. We encourage potential investors to look further afield than Perth.

“As always research is essential and it’s a good idea to speak to local agents to get an idea of the market drivers behind the statistics.”