Stellar gains recorded in Regional WA, Vic

The regional markets of Victoria and Western Australia exhibited robust growth in 2021, benefitting from the sea- and tree-change trend amid the COVID-19 pandemic.

Regional Victoria posted its largest annual increase in median house price since 2021, up by 27% to reach $565,000 over the year.

The median price of units in regional Victoria also grew substantially, hitting a growth rate of 19.6% to $395,950.

Real Estate Institute of Victoria (REIV) President Adam Docking said the gains achieved last year was on the back of the strong interest in regional markets among many homebuyers who would like to escape the city.

“These sets of data reflect the enduring attraction of regional Victoria as a lifestyle choice following two years of COVID-19 restrictions,” he said.

“Major factors influencing the residential real estate market continue to be low interest rates, lifestyle choices as more people work from home and pent-up demand after the series of lockdowns over 2020 and 2021.”

Western Australia’s regional markets also clocked a stellar year in 2021, with all the state’s regional centres recording gains over the year.

Port Hedland was the top-performing region, with its median price increasing by 44.7% to $430,500 during the year.

Real Estate Institute of Western Australia (REIWA) deputy president Joe White said the strong resurgence of WA’s mining industry in the Pilbara was the driving force behind Port Hedland’s house price growth.

“The desire of mining companies to have a more localised workforce has had a big impact on the number of people looking to buy houses in Port Hedland, which has created more competition and driven up prices,” he said.

The state government’s Voluntary Buy-Back Scheme in the West End, which gave residents the option to sell their property for a government-guaranteed market price, was also a contributing factor behind the growth.

However, it is important to note that despite the strong annual growth in Port Hedland, prices in the region are still more than 50% below its peak.

“The Pilbara was one of the hardest-hit places in the state for house prices during the downturn —house values plummeted, and a lot of people experienced financial hardship as a result,” Mr White said.

“Whilst we have seen significant price growth in Port Hedland over the last year, there is a way to go to reach the heights of 2013 and a lot of price growth still to be had.”

Aside from Port Hedland, Geraldton and Broome were also standout performers over the past year.

Mr White said the 22.8% growth in Geraldton and 17.6% gain in Broome also reflect the lifestyle trend witnesses across most states.

“Local agents on the ground in Geraldton and Broome have said a combination of the tourist boom and strong demand for rentals has seen an increasing number of people purchase property in these areas leading to a surge in prices,” Mr White said.

The data from REIWA below shows how the nine regional centres in the state performed over the past year.

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Photo by @alphazero on Unsplash.