Investors return to regional WA as yields hit 10 per cent in key mining towns

Following a decrease in activity in early 2025, investors have returned to some Western Australian regional markets in force.

A combination of factors has driven the resurgence. For some, Perth’s super-heated market has become less attractive, with ongoing strong property price growth and slowing rent price growth leading to lower yields.

The prospect of achieving returns or 9 to 11 per cent has seen investor activity increase in the north-west regional centres of Karratha, Port Hedland and Broome.

In these markets, a large proportion of rental properties are leased to mining companies and associated businesses, and government departments. These leases offer stability of tenure and consistently strong rental income, making the properties a very attractive proposition for investors.

Conditions vary within each of these regional centres and if you are thinking of investing in these areas, it is important to do your research.

For example, in the Broome regional centre, the data shows time to lease a property has increased from the September quarter to the December quarter. Members feel the market may be reaching its peak and some landlords are now receiving offers below the asking price.

Also to the north of Perth, the Geraldton regional centre showed some stability in the December quarter, however, activity has increased into 2026. This region is not dependent on mining, and there is strong demand for property from people moving to the region for work across a range of industries.

Location is an important consideration for anyone looking to invest. Members report people are looking for quality homes in good areas and are willing to pay well for them.

Investor motivation and activity vary significantly in WA’s southern regional centres.

In the Busselton regional centre, the resurgence of investors includes East Coast investors looking to retire to the area in the next five to 10 years.

They are attracted by the value for money the region offers, particularly for homes close to the beach, when compared to the eastern states.

There has also been a transition of some short-stay accommodation to the long-term market, with property owners noting it is easier to manage a long-term rental than a short-stay property.

Property prices up, rents mixed regionally

The Bunbury regional centre has also seen a return of investors, both from the East Coast and Perth. Members report they are drawn by potential yields and are willing to pay over the asking price in some cases.

The recent closure of the Albemarle lithium refinery and the loss of over 250 jobs could see a shift in the rental market. More properties could become available for rent, easing the supply and demand equation. In addition, some owners may decide to sell their investments.

Unlike other regional centres, Albany has seen investor interest dwindle, with the majority of recent sales being to owner-occupiers.

The region has recorded very strong price growth over the past year, and investors are becoming more price sensitive. For example, East Coast investors are looking for properties under $700,000 and there are not many available in that price range.

To the east, the Esperance regional centre has a very tight rental market and offers good opportunities for investors. Demand is high, which is driving price growth. Employment opportunities are seeing people move to the area, but the lack of supply makes it challenging to find a rental property. Members report quality properties are renting quickly for good prices.

In the Kalgoorlie-Boulder regional centre, investors are facing strong competition from first home buyers and downsizers.

The median rent price has not increased over the quarter or the year, and yields are not as high as some other regions. Members are not expecting much rent price growth over the year, which will affect investor interest in the region.

Some investors who bought several years ago are selling to achieve some capital growth, which will impact the rental market.

While all regional centres recorded median house sale price growth over the December quarter and year-on-year, rental performance varied.

It is essential potential investors do their own research and consider factors such as property price growth, rent price growth, potential yields, and overall tenant demand for a particular property type and location.

This should then be compared with their personal investment strategy, whether that is for capital growth, regular rental income, or even eventual retirement to that region.