Busselton, Broome lead regional WA price growth

Broome boasted the biggest price gains during the latest quarter among regional centres, recording a 4.7 per cent increase in the median house sale price to $649,000. 

The holiday hotspot’s impressive growth figures come on the heels of a strong March quarter performance. During the first three months of the year, Broome reported a 5.5 per cent quarterly gain in the median house sale price to $580,000. 

“Broome’s local market is strong and demand for property is high with many people moving to the regional centre for a sea-change,” Mr White said. 

However, Broome’s rental market is not equipped to cope with the surge in demand. The regional centre’s dire rental vacancy rate — which stood at 0 per cent in March, according to REIWA — appears to be compelling would-be tenants to buy instead of scouring the market for an available rental listing. 

This trend, Mr White noted, is driving up house prices in the area. “The rental market in Broome is also very tight, which is funnelling more people into the property market and putting upwards pressure on prices,” the REIWA executive stated. 

Busselton was the second best-performing region for the June quarter, recording a 4.5 per cent in its median selling price, which currently stands at $610,000. 

According to Mr White, the popular coastal town is attracting a new wave of home buyers looking for a lifestyle change. 

“In Busselton, a key demographic driving growth are families seeking a regional sense of community without having to sacrifice amenities, due to the range of schools, sporting clubs, local hospital and affordable housing options in the region,” he said.

He added that easy access to the airport and direct flights to Melbourne had become one of Busselton’s biggest drawcards to interstate investors and buyers. 

“There is also the first in, first out (FIFO) factor, with three companies now flying workers directly out of the Busselton Margaret River Airport. This is making it much easier for FIFO workers and their families to live in the south west,” Mr White said.

While Broome and Busselton stood out, REIWA data showed that a total of eight regional centres saw median home sale price growth during the June quarter. 

Other notable movers over the quarter were Esperance (up to 2.6 per cent to $400,000), Karratha (up 1.5 per cent to $527,750) and Port Hedland (up 1.1 per cent to $465,000).  

Port Hedland biggest winner in terms of annual gains 

Notably, all nine regional centres recorded median house sale price growth on an annual basis.

Port Hedland took the top spot, recording a 12-month growth of 28.2 per cent, which brought its median house sale price to $465,000. 

Other regional centres to notch double-digit annual growth in median house sale price were Broome (up 18 per cent), Busselton (16.9 per cent), and Geraldton (up 15.4  per cent). 

“Regional WA has been a beneficiary of the state’s strong economy, jobs market and growing population, with solid market conditions prevailing throughout the June 2022 quarter,” Mr White said. 

Premier Mark McGowan recently attributed the state’s affordable housing environment as a key reason for why there was a record level of interstate migration into Western Australia between 2020 and 2021.

“What makes our state so attractive compared to others is that we have the highest average salary and the lowest average mortgage,” he stated.

The federal official’s statement on 14 July came after the latest ABS data showed that Western Australia saw a record quarterly interstate migration inflow in the final months of 2021, with over 13,000 people moving west during the period. 

Mr White said REIWA concurred with Mr McGowan that West Australians were best positioned in the country to manage the costs associated with interest rate rises.

“This, combined with the ongoing housing shortage, is why we expect buyer demand to remain high and prices across regional WA to continue to grow,” Mr White concluded.