The WA regions still tracking towards 20 per cent price growth in 2025

Around Australia, regional property markets are outperforming their capital city counterparts and numerous major coastal centres around Western Australia are emulating that trend.

From Geraldton in the Midwest and Broome in the northern Kimberley region, to Bunbury in the state’s southwest, all have exceeded the 5 per cent quarterly growth that if continued throughout the year would generate more than 20 per cent annual capital growth.

Geraldton was the top performing regional centre for the December 2024 quarter, according to the latest data from REIWA, provided to API Magazine.

Its median house sale price rose 5.8 per cent to $455,000, up from $430,000 in the September 2024 quarter.

Joe White, Regional Spokesperson, REIWA, said strong demand was putting upward pressure on prices.

“While the FOMO may have eased in Perth, our members say it’s still strong in Geraldton,” he said.

“While the data shows there isn’t a shortage of established homes coming to market, they are selling quickly, which gives the appearance of limited stock and fuels that fear of missing out.”

“Competition is strongest in the mid-range price brackets, with properties priced around the median continuing to attract multiple offers and selling quickly.

“Family homes are particularly popular and are selling as soon as they come to market.”

Mr White said several factors were fuelling the demand for established homes in Geraldton.

“There is strong interest from investors, who are looking for houses that are ready to rent out, as well as companies wanting accommodation for staff,” he said.

“We’re also hearing that people are choosing to buy an established home, rather than build, as the cost of building is too high, particularly since increased building standards are being applied to new builds following 2021’s Cyclone Seroja.

“Unless we see an increase in affordable new supply or innovative solutions, such as using transportable homes in the short term, we can expect the challenges in the established homes market to continue.”

While investor interest remained strong in Geraldton, Mr White said it varied across the rest of the regions.

“Investor interest was also strong in Broome, particularly from interstate investors attracted by potential rental yields of around 8-9 per cent,” he said.

“In Port Hedland, our members tell us investors are slightly more dominant in the market than owner occupiers. Their interest is mostly focused on four-bedroom homes with tenants already in place.

“And in Karratha, investment activity has increased significantly over the past two quarters.

“Both local and Eastern States investors have been active in anticipation of upcoming mining projects leading to a boost in demand for rental properties.”

Mr White said investor activity in other regions showed signs of softening, particularly with east coast interest slowing.

“Busselton continues to attract investors, especially from Perth and regional WA, including Wheatbelt farmers investing post-harvest, however, members report interest from east coast investors is beginning to ease.

“In Esperance, investment activity has been more subdued lately but rental demand remains strong and well-presented properties continue to perform well, so there are good opportunities for investors.

“Eastern States interest in Bunbury has also eased, with members reporting a significant reduction in enquiries from interstate buyers agents compared to previous quarters, but overall investor activity is good, with local buyers more dominant in the market at the moment.”

Eight of the nine regional centres recorded price growth over the quarter. Port Hedland was the only regional centre where the median house sale price declined (down 1.5 per cent over the quarter, and up 2.7 per cent year-on-year).

Annually, Bunbury saw the highest growth, with the median house sale price rising 28.5 per cent to $591,250. Busselton was the state’s second best performer, recording 20.1 per cent growth over the year to $865,000.

All regional centres recorded an increase in median house sale price over the 12 months to December.

Regional rental market

In the rental market, seven Western Australian regional centres recorded an increase in their median weekly rent over the quarter. Bunbury remained unchanged and one saw a large decline (Port Hedland, down 12.6 per cent).

Broome recorded the most growth, with its median rent increasing 11.1 per cent to $1,000 per week.

Mr White said growth over the quarter was a reflection of more leases in higher price brackets, rather than a broad increase in rent prices.

“Our members are seeing less movement at the lower end of the market,” he said.

“Affordability is a concern for many people and those in lower-priced rentals are choosing not to move, as they know they will have to pay more for another property.

“So, what we are seeing is more leasing activity at the higher end of the market.”

Mr White said there were indications the Broome rental market could be reaching an affordability ceiling.

“Properties are taking slightly longer to rent and our members are seeing an increase in offers below the asking price,” he said.

“Some owners are reducing their prices to meet the market and secure a tenant.

“Property is about demand and supply and this is the market in action.”

Six regions recorded an increase in median rent over the year. Karratha remained stable and Broome (down 4.8 per cent) and Port Hedland (down 12.8 per cent) recorded declines.