The affordable regional city pegged as a top investment pick for 2025
With high rental yields and prices not far above the half million dollar mark, this Western Australian regional hub is attracting investors and tourists in equal measure.
As property investors seek stable, high-yield opportunities beyond metropolitan areas, Bunbury—a coastal city approximately 175 km south of Perth—emerges as a compelling choice at the midway point of 2025.
As of June, Bunbury’s median house price stands at approximately $697,000 according to Cotality (formerly CoreLogic), reflecting a 7.8 per cent growth trend for 2025 and 23.6 per cent growth through 2024.
Rental yields are also robust, with houses yielding 4.9 per cent and units up to 6.1 per cent, coupled with median weekly rents of $630 for houses and $615 for units. These figures indicate a healthy rental market, appealing to investors seeking consistent returns.
We see the best buying opportunities sitting in the $500,000 to $650,000 price range for a house, which will achieve about a 5 per cent gross rental yield.
Bunbury offers the perfect balance of lifestyle and investment fundamentals, making it popular for people priced out of Perth and open to a lifestyle change. It also holds appeal for holidaymakers and investors alike, presenting a diverse buyer profile and at an accessible price point.
Infrastructure and economic diversification
Bunbury is undergoing significant infrastructure developments:
- Waterfront Transformation: A $69.2 million project enhancing the city’s waterfront with a new 460-meter breakwater and land reclamation for marine services.
- Bunbury Regional Hospital Redevelopment: A $471.5 million investment expanding medical facilities and establishing Western Australia’s first regional teaching and research centre.
- Advanced Manufacturing and Technology Hub (AMTECH): Deloitte is conducting a feasibility study for a proposed hub aimed at boosting local manufacturing and technology sectors.
These projects are set to diversify Bunbury’s economy and create employment opportunities across various sectors.
Employment diversity and tourism
Bunbury boasts a diversified employment landscape, encompassing healthcare, education, manufacturing, tourism and port-related industries. This diversity provides economic resilience and stability, reducing reliance on a single industry.
One of Bunbury’s often-overlooked strengths is its strategic location as the northern anchor of the South West tourism region, just 90 minutes south of Perth. Importantly, it’s also a short 90 km (one hour drive) from Margaret River, one of Australia’s most iconic destinations for wine, surf, food and eco-tourism.
This proximity positions Bunbury not only as a regional city with economic and employment diversity, but also as a beneficiary of the South West's tourism boom.
Tourists heading south from Perth often pass through or stay in Bunbury, and many are now choosing to base themselves there to explore the broader region—thanks to its affordability, beautiful beaches, and improved amenities.
Tourism in the Southwest is a multi-billion-dollar sector, with growing year-round visitation driven by:
- wineries and gourmet trails in Margaret River and Ferguson Valley
- surfing and beaches along the Geographe Bay and Indian Ocean coastline
- annual events and festivals, including CinefestOZ and Gourmet Escape
- nature-based attractions such as the Dolphin Discovery Centre in Bunbury and nearby national parks.
For property investors, this translates to:
- high short-stay accommodation demand, especially during peak seasons
- retail and hospitality expansion, driving commercial opportunities
- steady population growth, as more people choose to relocate for lifestyle reasons while working remotely or in tourism-related industries.
A city with infrastructure and lifestyle appeal
Add to this Bunbury’s ongoing infrastructure upgrades—like the waterfront redevelopment and hospital expansion—and it becomes clear that this is more than a transient town; it’s a regional lifestyle hub with long-term growth fundamentals.
Unlike smaller coastal towns, Bunbury has the scale to support education, healthcare, port logistics, advanced manufacturing, and professional services—all while benefiting from the lifestyle halo of Margaret River.
In contrast, investing in mining-dependent towns carries significant risks.
For instance, Port Hedland experienced a dramatic property market crash, with median house prices plummeting from around $1.2 million in 2012 to $361,825 by 2017.
Such volatility underscores the dangers of investing in areas heavily reliant on the mining sector.
