First homebuyers are significantly impacting the housing market in regional Western Australia. According to the Real Estate Institute of Western Australia (REIWA), affordability is driving increased sales and price growth in these areas. During the September quarter, housing prices in regional centres outpaced those in Greater Perth, with eight of the nine regional centres reporting sales price increases of at least 2.3 percent.
Data from reiwa.com indicates that most regional centres experienced quarterly growth rates of 2.3 percent or higher, compared to a more modest two percent increase in Greater Perth. Notably, Albany and Esperance saw the most substantial price movements, reflecting the high demand among buyers in regional Western Australia. Albany recorded the highest quarterly growth rate, with its median house sale price rising by 6.3 percent to reach $680,000. Over the past year, prices in Albany have surged by 23.6 percent.
Esperance also reported impressive results, with a quarterly increase of 5.9 percent, bringing its median house price to $540,000. Over the last twelve months, prices in Esperance have risen by 14.9 percent. The market is particularly competitive for homes priced below $700,000, with agents noting high inquiry levels, multiple offers on properties, and frequent sales above asking prices.
While the market attracts some investors, it is predominantly first homebuyers from both Perth and local areas who are driving activity. Many buyers from Perth are relocating to regional centres to take advantage of affordability and lifestyle benefits. In Geraldton, which had a strong year previously, price momentum remains positive, showing a quarterly growth of 4.8 percent and an annual increase of 27.9 percent.
The demand for housing continues to outstrip supply in these regions, with agents reporting that competition remains fierce. Both established homes and land are in high demand, leading to competitive conditions and notable price growth. In towns such as Broome, Port Hedland, and Kalgoorlie-Boulder, while the growth has been more moderate, market conditions still remain tight. Agents observe quick selling times and sustained interest from first homebuyers, particularly for well-presented properties within affordable price ranges.
A critical factor contributing to this market dynamic is the shortage of properties available for sale. Many potential sellers are hesitant to list their homes due to limited options for their next residence, while new housing supply in regional areas is constrained. This imbalance between supply and demand is a significant driver of the robust price performance observed in the current market.
As competition among buyers intensifies, the regional housing market in Western Australia continues to thrive, offering both challenges and opportunities for first homebuyers and investors alike.
