Western Australia’s regional property markets are proving attractive to investors, with sharp rent gains, strong yields and relatively affordable house prices drawing attention away from Perth.
REIWA president Suzanne Brown (pictured) said that while the capital has been the focus of much interest, “regional areas have also attracted attention.”
That interest reflects a broader national shift. Investors are returning to the market after stepping back in recent years, with ABS data showing new investor loan commitments rose 3.5% in the June quarter. REA Group analysis also points to the housing upswing spreading beyond the capitals, with stronger demand not only in Sydney and Melbourne but also across regional WA.
Over the past year, Geraldton topped regional centres for price growth, with its median house price up 26.8% to $520,000.
“Looking longer term, Port Hedland has experienced dramatic growth, with a 125.1 per cent increase in its median house price over five years,” Brown said in a media release. “However, it was the only regional centre to record a decline in the past year.”
Properties are selling quickly across most centres, with Esperance recording the fastest median time on market at 11 days, followed by Albany at 12 days.
Rents across regional WA have surged over the past five years, with corporates and government departments competing for housing alongside private tenants.
Karratha stood out in the 12 months to June, with its median weekly rent jumping 30% to $1,300. Other hotspots included Broome, Port Hedland and Kalgoorlie-Boulder, where strong demand has underpinned competition.
“Houses are leasing in around two to three weeks in most regional centres, with Port Hedland the exception. Esperance and Karratha recorded the fastest median leasing time at 15 days,” Brown said.
Rental yields climbed in four regional centres over the past year, led by Karratha at 10.7%, followed by Port Hedland, Kalgoorlie-Boulder and Broome.
own said WA’s regional markets are also being supported by major projects: “WA’s regions are currently seeing a lot of infrastructure investment from large corporations and the state government. This is likely to continue to drive employment opportunities and population growth, which will support ongoing demand for rental properties.”
The state government is boosting its Government Regional Officer Housing program, which could reduce pressure on private rentals over time.
Brown reminded investors to do their homework: “Conditions will vary within the regional centres, and if you are looking to invest you should speak to a local REIWA member for insights into the best performing suburbs, vacancy rates, and tenant demand.”
She also urged buyers from the Eastern States to take a long-term view.
“Investors… should research each regional market carefully and make their decisions based on their personal situations and long-term goals,” Brown said.
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