24/05/2022 - 11:57

Regional median house prices grow

24/05/2022 - 11:57

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Median house sale prices in most WA regional centres grew during the recent quarter, with Busselton emerging as the top performer at a 5.5 per cent increase.

Regional median house prices grow
Median house sale prices in most WA regional centres grew during the recent quarter, with Busselton emerging as the top performer. Photo: Attila Csaszar

Median house sale prices in most West Australian regional centres grew during the recent quarter, with Busselton emerging as the top performer at a 5.5 per cent increase.

Recent data from the Real Estate Institute of Western Australia shows the median house sale price in Busselton increased 5.5 per cent to $580,000 during the March 2022 quarter.

Eight out of the nine regional centres recorded price growth, with Esperance’s median house sale price remaining unchanged at $390,000.

REIWA deputy president Joe White said price growth was widespread across regional WA during the quarter, with the Busselton regional centre named the stand-out performer.

“The impressive price growth recorded in the Busselton regional centre during the quarter can largely be attributed to a shortage of available housing in the region,” he said.

“With less stock available, this has turned the heat up amongst buyers, forcing them to be more competitive when putting an offer on a property and pushing up the regional centre’s median price.

According to REIWA, data shows house listings fell more than 21 per cent in the Busselton Regional centre during the recent quarter and were down 42 per cent compared to the March 2021 quarter.

Mr White said there has been an increase in interest in the Busselton regional centre from people living in Perth and interstate.

“Now that there are direct flights available from Melbourne to the Busselton Margaret River Airport, it will be interesting to observe what impact this has on house prices in the region moving forward," he said.

However, Port Hedland is still leading the statistics on annual price growth, with the median house sale price increasing 40.6 per cent to $457,000 between March 2021 and 2022 quarters.

“The Pilbara’s thriving commodity market has had a positive impact on house prices in Port Hedland, particularly as the COVID-19 pandemic has shifted the mindset of mining companies towards favouring a more localised workforce,” Mr White said.

"Another key contributor was the success of the Voluntary Buy-Back Scheme in Port Hedland’s West End that the WA Government agreed to back in June 2020.

“The scheme gives eligible residential property owners the opportunity to sell their property for a government-guaranteed premium market price.

“With more than 100 properties sold through the Voluntary Buy-Back Scheme in 2021 alone, this has had, and will continue to have, an impact on median house price growth in the Port Hedland regional centre.”

Median house sale prices growth during the 12-month period in Geraldton went up by 21 per cent, Broome up by 17.5 per cent and Busselton up by 12.6 per cent, according to the REIWA data.

Mr White said living regionally had become more accessible with employers shifting to a work-from-home flexible business model.

"REIWA anticipates that WA’s strong economy and forecast 1.2 per cent population growth, coupled with the state’s housing shortage, will maintain demand for properties in the regions and continue to drive price growth,” he said.

The REIWA data shows Broome has the highest median house sale price at $619,000 and Kalgoorlie at the lowest with $326,000.

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