Regional WA market "finding its feet" says REIWA President
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Oct 26, 2018
Regional WA market "finding its feet" says REIWA President
Regional Western Australia experienced an uptick in sales activity and median house price during the September 2018 quarter, REIWA data reveals.
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Western Australia Sotheby's International RealtyPictured: 4/ Deepdale Road, for sale by Graham Bowie of Western Australia Sotheby's International Realty.
The overall regional median house price increased 7.8 per cent to $345,000, while overall sales lifted by 1.2 per cent.
“It’s the first time this year we’ve seen overall sales activity and median house prices improve simultaneously in regional WA. The results of the September quarter are very promising and suggest a recovery is not too far away," REIWA President, Damian Collins said.
“Pleasingly, regional WA’s overall median house price also held up well on an annual basis, with the September 2018 quarter median three per cent higher than the September 2017 quarter."
REIWA data shows five out of eleven regional centres in WA held stable or increased medians over the quarter.
Albany was the top performing regional centre, with the median house price lifting from $339,000 to $430,000 - a 2.6 per cent increase.
Pictured: 1320 Nanarup Road, Albany. $20m, listing agent Neil McAllister of Western Australia Sotheby's International Realty seen on Luxury List.
"It also experienced an improvement on an annual basis, with its median price now 17.5 per cent higher than last year’s September quarter median,” Mr Collins said.
“There was a shift in the composition of sales in Albany during the September 2018 quarter, with significantly more activity occurring above $350,000 than there previously has been, and fewer sales occurring below $350,000, which is where the bulk of activity has typically occurred in this region.”
Other regional areas that experienced an improvement in the median house price were Busselton (up 9.8 per cent), Bunbury (up 1.9 per cent) and Geraldton/Greenough (up 1.8 per cent), while Broome’s median house price remained stable.
Meanwhile, Broome saw the biggest increase in sales growth over the quarter, lifting from 20 sales in the June quarter, to 38 sales this quarter - a 90 per cent increase.
“Port Hedland in the Pilbara also had a strong month, with sales up 51.7 per cent on the June quarter, with 91 transactions recorded. Neighbouring regional centre Karratha also recorded 91 sales, an improvement of 23 per cent on last quarter," Mr Collins said.
Pictured: 4/ Deepdale Road, for sale by Graham Bowie of Western Australia Sotheby's International Realty, as seen on Luxury List.
Mr Collins told WILLIAMS MEDIA the Pilbara region is "one to watch".
"The announcement of three new mining projects in the region by BHP, Rio Tinto and FMG is going a long way to restoring 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.
Other regional centres to record an improvement in sales were Geraldton/Greenough (sales up 31.8 per cent), Kalgoorlie/Boulder (sales up 26.8 per cent) and Mandurah/Murray (sales up 8.5 per cent).
Mr Collins told WILLIAMS MEDIA that it's been a very rough market in WA, but things are beginning to pick up.
“Although regional WA continues to feel the effects of the market slowdown, the results of the September 2018 quarter suggest the worst is over, with a number of regional centres starting to find their feet,” Mr Collins said.
Related reading:
WA's real estate best recognised at 2018 REIWA Awards for Excellence
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