Login
iscover
Regional Western Australia saw median price growth in seven of its nine centres over the last quarter of 2020, new data has shown.
It’s not a growth phenomenon restricted to that period either, with regional WA also experiencing house price growth in eight of its centres since the December 2019 quarter, according to the Real Estate Institute of Western Australia (REIWA).
Port Hedland emerged with the highest quarterly change in median price at 9.3 per cent to a median house sale price of $270,000.
Annually, Karratha was the winner, with a price increase of 17.5 per cent to a median home value of $470,000. This was closely followed by Port Hedland with a 17.4 per cent increase in median price.
Another great performer was Esperance, with a $343,000 median house price, representing a quarterly increase of 3.9 per cent and an annual increase of 9.8 per cent. Broome, meanwhile, saw prices increase by 1.2 per cent over the quarter and 6.7 per cent over the year to a median price of $480,000.
Of regional centres, Busselton recorded the highest median house sale price at $505,000, which is a 1.1 per cent quarterly increase but a -0.2 of a percentage point decline annually.
The value increases mean that the WA market has swung into the “seller’s favour”, according to REIWA president Damian Collins, with median values continuing to increase while stocks deplete.
Albany, Bunbury, Geraldton and Kalgoorlie-Boulder also saw an annual increase in median price at 1.3 per cent, 1.4 per cent, 3.8 per cent and 1.7 per cent, respectively.
Sales activity
Karratha and Geraldton saw double-digit growth in sales activity over the December 2020 quarter at 15 per cent and 12 per cent, respectively.
Improvements were also seen across Port Hedland (7 per cent), Albany (4 per cent) and Kalgoorlie-Boulder (1 per cent).
According to Mr Collins, the strong signs of recovery in mining sectors like Port Hedland and Karratha are partly attributed to the “commitment by mining companies to keep their workers in WA as they continue to navigate the COVID-19 travel restrictions”.
Further, the growing number of people seeking to escape the city for a sea change also impacts the growth in regional centres.
“With the fallout of COVID-19 changing how we do business, [Western] Australians are increasingly able to work remotely and therefore have more freedom to choose where they want to live,” the president said.
“It will be interesting to see whether this translates to longer-term regional population growth.”
Rental market
The sentiment was similarly positive for rentals, with all nine regional centres recording an increase in rent price during the quarter.
Port Hedland and Karratha saw the highest increase — at $55 to $550 per week and $50 to $700 per week, respectively.
The increase in price has coincided with a decline in rental listings, with seven regional centres witnessing a decline.
In Busselton and Bunbury alone, listings were down by 36 per cent and 23 per cent, respectively.
Less stock means tenants in regional WA have had to offer more weekly rent to secure a lease, Mr Collins flagged.
He said: “The decrease in rental stock across regional WA can be attributed to higher demand and subdued investor activity. Almost all regional WA markets are now in a state of undersupply, with vacancy rates at or below 1 per cent in many cases.
“Investors may want to consider regional WA as part of their investment portfolio, rather than just focusing on Perth.”
You are not authorised to post comments.
Comments will undergo moderation before they get published.