House prices across regional Western Australia are rising at faster rates that Perth new data reveals.
The latest figures from CoreLogic shows that house prices in regional WA have increased by 19.9 per cent in the year to September 2021.
Property prices in Pert have risen 18.1 per cent in the past year.
This is a very positive sign for the market in WA, following a period of underperformance on the back of the mining industry downturn.
Eight regional centres recorded price growth during the September quarter, with Geraldton being the best performed.
“Price growth across regional WA is strong and even outperformed the Perth region for annual growth in the year to September 2021,” Mr Collins said.
“Geraldton’s median house sale price increased 6.2 per cent to $345,000, which was the strongest performance for price growth of any regional centre during the September quarter.”
Broome and Port Hedland also performed well, with their median house sale prices increasing 5.4 per cent to $579,500 and 5.1 per cent to $379,000, respectively.
“A number of factors have contributed to the strong growth in Port Hedland over the last year, such as the desire of mining companies to have a more localised workforce and the implementation of the WA Government’s Voluntary Buy-Back Scheme in the West End, which gave residents the option to sell their property for a government-guaranteed market price,” Mr Collins said.
Tight Stock Levels
Over the past 12 months, listings in regional areas have been tight, however, Mr Collins believes stock is now coming onto the market.
“Whilst competition for stock is still high, it’s pleasing that more properties are coming to market across regional WA,” he said.
“A growing number of property owners recognise there is strong demand from buyers and are feeling motivated to sell.”
Karratha recorded the biggest increase in listings in the September quarter, (up 17 per cent), followed by Geraldton (up 15 per cent), Port Hedland (up seven per cent) and Broome (up six per cent).
Busselton and Albany recorded the biggest decline in listing volumes during the quarter, with stock levels in the two centres dropping 20 per cent and 17 per cent respectively.
Property Selling Fast
Another key indicator that highlights strong buyer demand has been the continued decline in the time to sell a property.
“Declining stock levels have caused increased competition amongst buyers in Esperance, resulting in the median time to sell reducing by more than three weeks in just one quarter,” Mr Collins said.
“If you’re a home owner in Esperance thinking of selling, now would be a good time to act.”
Busselton had the fastest median selling time of any regional centre during the September 2021 quarter, at 14 days.
“Not only was Busselton the fastest-selling regional centre during the September 2021 quarter, it was the fastest-selling region in the state, outperforming Perth as well,” Mr Collins said.
Looking forward, Mr Collins believes the outlook remains very positive for property in regional WA.
“REIWA anticipates regional WA’s current growth cycle will continue through the remainder of 2021 and into 2022. Low stock levels are the driving force behind this growth, resulting in strong buyer demand which has put upwards pressure on house prices,” Mr Collins said.