Geraldton tops WA regional centres for quarterly price growth: REIWA
Geraldton emerged as the top-performing regional centre over the last quarter of 2024, with the market running hot off the top of strong price growth and persistent demand.
The Real Estate Institute of Western Australia’s (REIWA) findings showed that Geraldton’s median house sale price rose 5.8 per cent to $455,000, up from the $430,000 recorded in the September 2024 quarter.
Eight of Western Australia’s regional centres recorded price growth over the quarter, with Port Hedland being the only regional centre where the median house sale price declined.
REIWA regional spokesperson Joe White explained that strong demand was putting upward pressure on prices in the Geraldton market.
“While the data shows there isn’t a shortage of established homes coming to market, they are selling quickly. This gives the appearance of limited stock and fuels that fear of missing out,” White said.
White observed that competition in Geraldton is strongest in the mid-range price brackets and noted that properties priced around the median are continuing to attract multiple offers and sell quickly.
“Family homes are particularly popular and are selling as soon as they come to market,” he said.
White said that REIWA’s research shows several factors are fuelling the demand for established homes in Geraldton.
“There is strong interest from investors, who are looking for houses that are ready to rent out, as well as companies wanting accommodation for staff,” White said.
The institute stated that people have increasingly been choosing to buy an established home as opposed to building, which it attributed to heightened construction costs around the increased building standards for new builds that were introduced following Cyclone Seroja in 2021.
“Unless we see an increase in affordable new supply or innovative solutions, such as using transportable homes in the short term, we can expect the challenges in the established homes market to continue,” White said.
Notably, all of Western Australia’s regional centres recorded an increase in median house sale price over the 12 months to December.
Annually, Bunbury recorded the highest growth, with the median house sale price rising 28.5 per cent to $591,250, while Busselton, the state’s second best performer, recorded 20.1 per cent growth to $865,000.
Regional WA rentals becoming increasingly top-heavy
Seven West Australian regional centres reported an increase in their median weekly rent over the quarter, with the Bunbury market remaining unchanged and Port Hedland seeing a decline.
Broome recorded the most growth over the quarter, with its median rent increasing 11.1 per cent to $1,000 per week.
Six regions recorded an increase in median rent over the year, with Karratha remaining unchanged and the Broome and Port Hedland markets seeing annual declines.
White shared his viewpoint that growth over the quarter was a reflection of more leases in higher price brackets, as opposed to a broader increase in rent prices.
He attributed this to affordability concerns and noted that many individuals in lower-priced rentals are choosing not to move in order to avoid paying more to move into another property.
“At the moment, our members are seeing less movement at the lower end of the market. So what we are seeing is more leasing activity at the higher end of the market, “ White said.
White cautioned that the Broome rental market could be approaching an affordability ceiling, with some owners having to reduce their prices to meet the market and secure a tenant.
“Properties are taking slightly longer to rent, and our members are seeing an increase in offers below the asking price,” he said.
“Property is about demand and supply, and this is the market in action.”