There were mixed results throughout regional Western Australia in the December 2018 quarter, with just three of the nine regional centres to record house price growth according to REIWA.
Busselton, Port Hedland and Bunbury were the only regional centres to record median house price growth according to industry body the Real Estate Institute of Western Australia (REIWA).
Their respective medians increased by 11.2 per cent, 5 per cent, and 1.5 per cent respectively.
While regional WA’s overall median house price performed well, lifting 5.5 per cent to $335,000, REIWA President Damian Collins said it’s important to assess each area individually.
“The increase in price in Busselton, Port Hedland and Bunbury – three of the larger regional centres in the state – was a big driver behind why regional WA’s overall median house price improved during the quarter,” Mr Collins said.
Broome and Esperance had the biggest price declines over the quarter, with their medians coming in at $430,00 and $325,000.
Kalgoorlie-Boulder was the only regional centre to record no change in median house price, with prices in the area stabilising.
Property sales were down, but Mr Collins said it’s not unusual for the time of year.
“It’s not uncommon for sales to drop off this time of year, as people are generally less inclined to purchase property in the lead up to the Christmas and New Year holiday season.
“Despite these seasonal influences, the Geraldton and Kalgoorlie-Boulder regional centres saw an increase in activity on both a quarterly and annual basis, with sales in Geraldton up 36 per cent compared to the September 2018 quarter and 10 per cent compared to the December 2017 quarter. Kalgoorlie- Boulder saw sales increase 10 per cent during the quarter and 17 per cent compared to the same time last year.”
Resurgence in mining projects propping up market
Mr Collins told WILLIAMS MEDIA the regional market is benefitting from a resurgence in mining projects.
“It’s had a positive impact on sales in these regions, especially in Kalgoorlie-Boulder and Port Hedland, where renewed support in mining has created more local jobs and helped to boost population growth.
“With mining projects in these regions expected to continue to grow, this should have a positive impact on the regions’ property markets and aid in their recovery.”
Mr Collins told WILLIAMS MEDIA the Pilbara region was an area to watch, with the announcement of three new mining projects in the region by BHP, Rio Tinto and FMG helping restore confidence in the area.
“With 20,000 new local jobs expected to be created as a result of these projects, this should support population growth in the region, improve demand for housing in the area and aid recovery,” he said.
Credit: The Real Estate Conversation