Regional WA property hotspots outperforming Perth’s red-hot market
Property investors looking to diversify their property portfolio in a region delivering high rates of capital growth should consider turning their gaze towards Western Australia's high-performing regional centres.
Property investors around Australia have converged on the Perth property market in the latter half of 2023 but some of the state’s regional centres are slipping under the national radar yet delivering similar or even greater price growth.
Perth’s median house price rose 1.8 per cent in the September 2023 quarter, however, the median house price in Bunbury rose 3.5 per cent to $445,000 over the same period. It was the top performing regional centre for the quarter.
Across WA, property values were up 7.9 per cent for the past 12 months, behind only South Australia (10.1 per cent) among the state’s regional property markets.
CoreLogic data released Friday (1 December) showed regional WA dwelling values had risen faster than the vast majority of national city and regional markets for the quarter (3.4 per cent) and in November (up 1.3 per cent, behind only Perth among the nation’s capital city and rest-of-state regional markets).
Joe White, President Real Estate Institute of Western Australia (REIWA), said Bunbury, like many regions, was seeing strong demand for established homes, which was putting upward pressure on prices.
Elsewhere around Australia regional property markets have delivered a mixed bag of results.
“Houses in the Bunbury regional centre sold in a median of 15 days, which is eight days faster than the previous two quarters, reflecting the high demand,” he said.
“Population growth, combined with the challenges in the rental market and ongoing constraints in the building industry are maintaining demand for established homes.”
| BUNBURY | |||||
|---|---|---|---|---|---|
| Q3 2023 | Q2 2023 | Q3 2022 | QOQ | YOY | |
| Annual Median Sale Price (< 1HA) | $445,000 | $430,000 | $410,000 | 3.5% | 8.5% |
| Listings for Sale (EOQ) | 106 | 144 | 214 | -26.4% | -50.5% |
| Median Selling Days | 15 | 23 | 23 | -33.3% | -33.3% |
| Median Weekly Rent | $550 | $540 | $495 | 1.9% | 11.1% |
| Listings for Rent (EOQ) | 30 | 35 | 26 | -14.3% | 15.4% |
| Median Leasing Days | 15 | 16 | 14 | -3.2% | 7.1% |
Bunbury saw a lot of sales activity at the lower end of the market during the quarter.
“With 13 interest rate rises since May 2022, affordability is important to buyers, and Bunbury is relatively affordable, particularly when you compare it to Perth and neighbouring Busselton,” Mr White said.
“It’s close to Perth, offers the benefits of a WA southwest lifestyle and is close to many other attractions of this attractive region.
“As a large regional centre, it also offers a lot of employment opportunities, such as the port, agriculture and manufacturing, and these are set to grow with plenty of development occurring in the area.
“And it’s not just local industry attracting people, with nearby Busselton Airport flying out to three major mining sites, it has also become popular with FIFO workers.”
Five of the nine regional centres recorded price growth over the quarter, one remained stable and three recorded declines. Interstate buyers have contributed to the price push.
Annually, Port Hedland recorded the most growth, with its median house price rising 9.1 per cent over the year to $500,000. Bunbury was the second best performer with an 8.5 per cent increase in its median house price. By comparison, Perth recorded 5.6 per cent growth over the same period.
| PORT HEDLAND | |||||
|---|---|---|---|---|---|
| Q3 2023 | Q2 2023 | Q3 2022 | QOQ | YOY | |
| Annual Median Sale Price (< 1HA) | $500,000 | $501,703 | $458,500 | -0.3% | 9.1% |
| Listings for Sale (EOQ) | 59 | 62 | 64 | -4.8% | -7.8% |
| Median Selling Days | 44 | 34 | 45 | 31.3% | -1.1% |
| Median Weekly Rent | $950 | $800 | $798 | 18.8% | 19.1% |
| Listings for Rent (EOQ) | 21 | 15 | 3 | 40.0% | 600.0% |
| Median Leasing Days | 23 | 36 | 37 | -36.1% | -37.8% |
WA’s regional rental market
In the rental market, five regional centres recorded an increase in their median weekly rent over the quarter. Two remained unchanged and two declined.
Karratha saw the most growth, with its median weekly rent increasing 23.1 per cent to $1,200.
While rent prices are rising, they are still below the peak of $1,750 set in the December 2011 quarter.
| KARRATHA | |||||
|---|---|---|---|---|---|
| Q3 2023 | Q2 2023 | Q3 2022 | QOQ | YOY | |
| Annual Median Sale Price (< 1HA) | $563,750 | $555,000 | $525,000 | 1.6% | 7.4% |
| Listings for Sale (EOQ) | 61 | 78 | 56 | -21.8% | 8.9% |
| Median Selling Days | 33 | 37 | 26 | -10.8% | 26.9% |
| Median Weekly Rent | $1,200 | $975 | $750 | 23.1% | 60.0% |
| Listings for Rent (EOQ) | 31 | 31 | 16 | 0.0% | 93.8% |
| Median Leasing Days | 25 | 26 | 14 | -3.9% | 75.0% |
Mr White said rents in the North West had seen strong growth.
“The median weekly rent in Karratha has increased 60 per cent in the past year and Port Hedland has seen 19.1 per cent growth,” he said.
“There are growing employment opportunities as the resource sector continues to strengthen and this fuels the need for rental properties in these areas.
“While building constraints are having an impact on all markets, they are greater in regional areas, like the Pilbara.
“It is difficult to get trades and materials, the cost of building has risen significantly and is prohibitive for many people.
“As a result, there is pressure on the rental market to meet the needs for housing.”
Rental properties leased quickly in the regions. Bunbury recorded the fastest time to lease a property, with vacancies filling in a median of 15 days. This was on par with the Perth market.
| Q3 2023 | Q2 2023 | Q3 2022 | QOQ | YOY | |
|---|---|---|---|---|---|
| ALBANY | |||||
| Annual Median Sale Price (< 1HA) | $478,250 | $480,000 | $450,000 | -0.4% | 6.3% |
| Listings for Sale (EOQ) | 113 | 81 | 129 | 39.5% | -12.4% |
| Median Selling Days | 12 | 19 | 14 | -35.1% | -11.1% |
| Median Weekly Rent | $450 | $455 | $395 | -1.1% | 13.9% |
| Listings for Rent (EOQ) | 18 | 16 | 5 | 12.5% | 260.0% |
| Median Leasing Days | 21 | 19 | 17 | 10.5% | 23.5% |
| BROOME | |||||
| Annual Median Sale Price (< 1HA) | $633,500 | $641,000 | $650,000 | -1.2% | -2.5% |
| Listings for Sale (EOQ) | 78 | 60 | 64 | 30.0% | 21.9% |
| Median Selling Days | 27 | 39 | 36 | -29.9% | -25.0% |
| Median Weekly Rent | $1,000 | $1,000 | $750 | 0.0% | 33.3% |
| Listings for Rent (EOQ) | 6 | 6 | 14 | 0.0% | -57.1% |
| Median Leasing Days | 23 | 21 | 17 | 9.5% | 39.4% |
| BUSSELTON | |||||
| Annual Median Sale Price (< 1HA) | $685,000 | $680,000 | $650,000 | 0.7% | 5.4% |
| Listings for Sale (EOQ) | 108 | 77 | 131 | 40.3% | -17.6% |
| Median Selling Days | 18 | 19 | 17 | -2.7% | 5.9% |
| Median Weekly Rent | $650 | $650 | $580 | 0.0% | 12.1% |
| Listings for Rent (EOQ) | 18 | 29 | 9 | -37.9% | 100.0% |
| Median Leasing Days | 22 | 19 | 14 | 18.9% | 57.1% |
| ESPERANCE | |||||
| Annual Median Sale Price (< 1HA) | $420,000 | $420,000 | $400,000 | 0.0% | 5.0% |
| Listings for Sale (EOQ) | 28 | 38 | 39 | -26.3% | -28.2% |
| Median Selling Days | 27 | 26 | 57 | 3.9% | -53.1% |
| Median Weekly Rent | $380 | $425 | $350 | -10.6% | 8.6% |
| Listings for Rent (EOQ) | 5 | 7 | 5 | -28.6% | 0.0% |
| Median Leasing Days | 19 | 18 | 20 | 2.8% | -5.1% |
| Q3 2023 | Q2 2023 | Q3 2022 | QOQ | YOY | |
| GERALDTON | |||||
| Annual Median Sale Price (< 1HA) | $379,500 | $375,000 | $375,000 | 1.2% | 1.2% |
| Listings for Sale (EOQ) | 201 | 207 | 277 | -2.9% | -27.4% |
| Median Selling Days | 37 | 48 | 45 | -22.9% | -16.9% |
| Median Weekly Rent | $450 | $400 | $388 | 12.5% | 16.1% |
| Listings for Rent (EOQ) | 15 | 27 | 22 | -44.4% | -31.8% |
| Median Leasing Days | 21 | 22 | 22 | -4.5% | -2.3% |
| KALGOORLIE - BOULDER | |||||
| Annual Median Sale Price (< 1HA) | $349,000 | $347,500 | $330,000 | 0.4% | 5.8% |
| Listings for Sale (EOQ) | 111 | 150 | 134 | -26.0% | -17.2% |
| Median Selling Days | 37 | 37 | 32 | -1.4% | 14.1% |
| Median Weekly Rent | $580 | $550 | $520 | 5.5% | 11.5% |
| Listings for Rent (EOQ) | 44 | 53 | 28 | -17.0% | 57.1% |
| Median Leasing Days | 22 | 25 | 15 | -14.0% | 43.3% |
| REST OF WA | |||||
| Annual Median Sale Price (< 1HA) | $339,500 | $330,000 | $315,000 | 2.9% | 7.8% |
| Listings for Sale (EOQ) | 649 | 647 | 753 | 0.3% | -13.8% |
| Median Selling Days | 30 | 40 | 34 | -24.1% | -10.4% |
| Median Weekly Rent | $500 | $520 | $420 | -3.8% | 19.0% |
| Listings for Rent (EOQ) | 78 | 107 | 62 | -27.1% | 25.8% |
| Median Leasing Days | 23 | 22 | 23 | 4.7% | 0.0% |
