WA seaside town surpassing national house growth,
WA’s regional housing market is again outperforming the capital city, leading the way in value growth, rents, and rental yields.
The latest CoreLogic Regional Market Update revealed that, although growth has slowed, WA and Queensland regions still dominate top-performing lists.
These regions secured the top eight spots for quarterly value growth, maintaining impressive momentum despite the recent slowdown.
CoreLogic Australia economist Kaytlin Ezzy highlighted that Geraldton showed the strongest annual increase, with dwelling values rising by 28.7%.
This growth added over $100,000 to the median value, underscoring the region’s strong performance in the housing market.
She also mentioned that lifestyle appeal, affordability, and favorable conditions for investors are driving strong buyer confidence in these regions.
“Regions like Mackay, Geraldton, and Townsville are seeing exceptional growth due to affordability and lifestyle advantages over major cities,” she said.
Despite impressive growth, these markets remain attainable, with median prices under $600,000, making them accessible for buyers with mortgage capacity.
In contrast, many non-capital city regions in Victoria and New South Wales experienced declines in property values over recent months.
KPMG regional economist Terry Rawnsley noted that WA’s economy remains strong, attracting more people and boosting housing demand in the state.
He explained that when homebuyers were priced out of the Perth housing market, they began moving further into regional areas.
“During the pandemic, Perth was the initial choice for buyers, but eventually, they were pushed to Mandurah,” he said.
“If homebuyers were priced out of the Mandurah market, they then found themselves moving to places like Busselton,” he added.
This shift shows how affordability pressures in Perth drove buyers further into regions, expanding demand in areas outside the city.
Top-performing regional towns in WA
| Town | Median value | Quarterly change | Annual change |
|---|---|---|---|
| Albany | $586,741 | 5.8% | 17.4% |
| Broome | $587,068 | 5.4% | 11.5% |
| Bunbury | $640,344 | 4.1% | 24.5% |
| Busselton | $898,993 | 2.5% | 21.2% |
| Geraldton | $455,187 | 8.2% | 28.7% |
| Kalgoorlie – Boulder | $365,729 | 6.5% | 10.7% |
| Karratha | $553,289 | 4.6% | 6.3% |
| Perth | $804,282 | 4.1% | 22.6% |
| Port Hedland | $429,893 | 0.9% | 0.3% |
“So it’s no surprise that the regional markets are rising as Perth boom continues while back on the east coast, markets are softening with vendors discounting.”
Regional rental markets have also continued to outperform their capital city counterparts with Albany the strongest regional rental market in the nation, with a 3 per cent quarterly increase in rent.
Geraldton recorded a 14.6 per cent lift in annual rent, equivalent to a $66 per week rental increase – illustrative of strong rental demand, a shortage of available stock and possibly investor appeal, Ezzy said.
“Rental markets where there have been strong quarterly increases are experiencing a combination of strong tenant demand and constrained supply,” she said.
Regional WA also delivered the highest gross rental yields, with Kalgoorlie-Boulder recording a yield of 8.8 per cent for the quarter.
