Regional house prices rising as more Perth city dwellers escape rat race
Perth city dwellers are continuing to escape the hustle and bustle of metropolitan living according to the latest Regional Movers Index for the June 2023 quarter which shows migration to regional areas is up more than 16 per cent on average compared to pre-COVID years.
The Greater Geraldton, Waroona and York regions have experienced some of the biggest increases in inflows over the past year.
Regional Australia Institute chief executive Liz Ritchie said the pull of the regions is growing, with people seeing country communities as offering a happier, cheaper and better quality of life.
“In 2020, 67 per cent of people thought regional living would give them more time for themselves,” she said.
“In 2023, this jumped to 74 per cent.
“At the same time, net dissatisfaction with city life is up, and more people are now worried about cost-of-living pressures in the city.”
Port Hedland was the top-performing regional centre for the June 2023 quarter, recording a 6.1 per cent increase in its median house price according to the latest report from REIWA.
Its median house price rose from $470,000 in the March 2023 quarter to $498,500.
REIWA president Joe White said Port Hedland was seeing a lot of activity at the more affordable end of the market.
“Members report demand is higher in the $250,000-$400,000 price bracket and properties are selling quickly, while $600,000-$700,000 family homes are taking longer to sell,” he said.
“Both local owner occupiers and interstate investors are active in the market.
“NSW investors, in particular, are increasingly interested in Port Hedland, seeking to capitalise on the significant range of new infrastructure and resource projects underway that will boost employment and the need for accommodation.”
Delays in the building industry were also supporting demand in the established homes market.
“A lack of building development in the area means it is often cheaper and more convenient to purchase an existing property,” White said.
Eight of the nine regional centres recorded price growth over the quarter. Broome was the only regional centre where the median house price declined.
Last quarter’s top performing regional centre, Albany, was this quarter’s second-highest performer with its median house price rising 2.1 per cent to $480,000.
Annually, Albany recorded the most growth. Its median house price rose 10.3 per cent over the year. Busselton was the next best performer with a 10 per cent increase in its median house price.
In the regional rental market, seven regional centres recorded an increase in the median weekly rent over the quarter. One remained unchanged and one saw a decline.
Esperance saw the most growth, with the median weekly rent increasing 26.9 per cent to $425. It was the highest quarterly change for the region since REIWA records began in 2007.
“As with all regional centres, rental conditions are very tight in Esperance,” White said.
“Investors have sold their properties and they are being purchased by owner occupiers rather than other investors. It’s a common occurrence across the state.
“This gap between supply and demand continues to put pressure on rent prices.”
Karratha was the second top performer for rent growth. It recorded an increase of 17.6 per cent over the quarter, with its median rent rising to $1,000 per week.
White said regional employers were finding innovative solutions to house workers amid the challenging rental conditions.
“Members have reported several instances of large organisations purchasing motel accommodation to house their workers,” he said.
“We’re also aware of a local shire and small businesses purchasing investment properties for their workers to live in.”
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