First homebuyers are significantly influencing the housing market in regional Western Australia, leading to notable price growth and increased sales. According to the Real Estate Institute of Western Australia (REIWA), affordability is a key factor driving this trend, with most regional centres experiencing quarterly price increases at or above 2.3 percent for the September quarter.
Strong Price Growth in Regional Centres
Sales price growth in regional areas is outpacing that of Greater Perth, where prices rose by only two percent during the same period. REIWA’s data indicates that all but one of the nine regional centres recorded price growth for the quarter. Notably, **Albany** and **Esperance** showcased the most substantial increases, reflecting robust buyer demand across the region.
Albany’s median house sale price surged by **6.3 percent** over the past three months, reaching **$680,000**. Over the past year, prices in Albany have climbed by **23.6 percent**. Similarly, Esperance experienced a **5.9 percent** increase in its median house price, now standing at **$540,000**, with an annual growth rate of **14.9 percent**.
The competition for homes priced below **$700,000** is particularly intense. Local REIWA agents report high enquiry levels and multiple offers on properties, with many selling above their asking prices. While investors are active in the market, first homebuyers from both Perth and local areas are increasingly dominating purchases. Many buyers from Perth are relocating to regional areas to take advantage of greater affordability and improved lifestyle options.
Continued Demand and Supply Constraints
Geraldton, having had a strong performance last year, continues to show upward momentum with a **4.8 percent** increase in prices for the quarter, contributing to an impressive **27.9 percent** annual growth. Agents indicate that demand consistently exceeds supply for both established homes and land, creating competitive conditions that drive prices higher.
In other regional areas, such as **Broome**, **Port Hedland**, and **Kalgoorlie-Boulder**, while price growth has been more moderate, market conditions remain tight. Agents report quick selling times and strong interest from first homebuyers, particularly for well-presented properties within affordable price brackets.
The overall housing market in regional Western Australia is facing a significant shortage of available properties. Sellers are hesitant to list their homes due to a lack of options for their next purchases, and new housing supply remains constrained. This imbalance between supply and demand is a major contributor to the strong price performance currently observed across the regions.
As competition among buyers intensifies, the dynamics of the housing market in regional Western Australia continue to evolve.
