Investors eye regional Western Australia as yields take centre stage

The removal of negative gearing for established dwellings will have a range of differing implications for city and regional property markets.

In Perth, where finding a neutral or positively geared established property can be challenging, the change is likely to see investors look to new builds. Generally, this will drive investors to Perth’s outer suburbs where the majority of land is available and more continues to slowly be released.

Ironically, this will increase competition with first home buyers, the very people the Federal Government is intending to help.

The situation is very different in WA’s regional areas.

Finding land and a builder is extremely difficult in many regional centres, and the cost to build can be a significant deterrent for investors, regardless of the potential to negatively gear a property.

While we desperately need more rental supply in the regions, the Government’s tax strategy is unlikely to see a boost in new builds.

However, the regions offer other prospects for savvy investors, which could support rental markets.

The relative affordability of some of the regional centres, combined with strong rent price growth in the past few years, offers many opportunities for properties to be neutrally or positively geared. There is also potential for strong yields.

For example, based on their median house sale price and median rent price in the March 2026 quarter, Karratha, Port Hedland and Kalgoorlie-Boulder offer yields above 8 per cent.

Their median prices are also well below that of Perth, which recorded a median house sale price of $900,000 at the end of the March quarter.

However, investors should look beyond the figures and understand what is driving the markets.

Mining towns set apart

The Karratha regional centre has seen 31.8 per cent rent price growth in the year to March 2026 and is the most expensive regional rental market in the state.

Rent price growth is mostly being driven by demand from companies, predominantly mining companies; businesses subcontracting to mining companies; and government departments.

They need to house workers and can afford to pay more to secure housing.

Even local businesses are renting properties to provide housing for their employees as a means of attracting and retaining staff.

Two major mining construction projects, which require large workforces, are expected to continue to support strong rental demand over the next few years.

Port Hedland was the top performer for price growth in the March quarter, with its median house sale price rising 6.9 per cent to $590,000. Its rent price declined in the March quarter and was stable over the year. Despite this, yields remain strong and there is a lot of investor interest in the area.

The rental market in the Port Hedland regional centre is also driven by mining and associated companies.

Demand should continue, with potential mining projects likely to attract people to the region.

This includes BHP’s significant investment in infrastructure projects and Northern Star’s purchase of the Hemi Development Project, which could create around 1,700 jobs during construction and operation if the project is approved.

The market is different in Kalgoorlie-Boulder, which is not being driven by either mining companies or demand from government departments.

Instead, retention of the local population, along with more people moving to the area, is creating demand for rental properties. Demand is likely to remain strong, with the Kalgoorlie-Boulder Chamber of Commerce and Industry launching the SoKal campaign, a regional workforce attraction initiative.

With a median house sale price of $440,000 and a median rent price of $695, its affordability and yields appeal to investors.

While there may not be a huge opportunity for short-term high capital growth, REIWA members say you can expect to find positively geared properties that consistently generate a good weekly income.

Broader regional WA investment opportunities

While these three regional centres are currently the strongest performers for yields, other regional centres can also provide very good yields.

Geraldton is still seeing strong investor interest. It has a median house sale price of $600,000, median weekly rent price of $550, and a yield of 4.8 per cent based on March quarter figures.

And it’s not just the major regional centres that can provide excellent investment prospects.

I was speaking to a REIWA member recently who highlighted Newman, another mining town, as having outstanding investment potential.

With a median house sale price of $380,000 and a median weekly rent price of $750 in the March quarter, it has a yield of 10.3 per cent. And I’m told there are plenty of opportunities for properties to be positively geared.

It will be very interesting to see how the Federal Government’s taxation changes play out once the dust settles. I encourage investors to look beyond capital cities to regional centres and towns for investment opportunities.

As with every investment decision, research is essential, and when you find an area that shows potential, speak to a local REIWA member to find out what is driving the market now and what could impact it in the years ahead.