- Seven of the nine regional WA centres saw an increase in median sale prices
- Median weekly rent also increased in all regional centres
- Port Hedland saw a 17% over the 2020 calendar year
As previously reported here on The Property Tribune, REIWA’s December 2020 quarter data showed that seven of the nine regional centres saw an increase in their median sale prices.
Over 2020 as a calendar year, regional WA saw greater growth in terms of percentage of sales compared to the Perth metropolitan area.
Additionally, the median weekly rent increased in all nine regional centres with seven of these recording declines in rental stock.
A good time to invest in Regional WA?
There are many pros and cons, according to REIWA President Damian Collins.
“While investing in regional areas is inherently riskier than larger cities, regional investments also have the potential to deliver a greater upside. If a regional town’s economy booms, then this can cause property prices to spike, which is what we are seeing in a number of the regional centres.”
Damian Collins, REIWA CEO
An example of regional property booming is in the Pilbara region.
Strong price growth has been recorded in Port Hedland and Karratha thanks to the high-performing commodity market. Port Hedland was the strongest performing regional centre in the entire state during the December 2020 quarter recording a 9.4% increase in its median price which took it to a 17% increase over the whole year.
Port Hedland is also currently undergoing a voluntary buyback for residential housing affected by dust pollution which is set to cost $200 million.
“Clearly with price growth like that, there is good opportunity for investors, but this needs to be undertaken with a level of caution.”
“Is that market prone to steep rises and falls? Is buyer demand likely to remain strong in the area? What projects or investments are planned in the area that might impact population trends and house prices?”
Damian Collins, REIWA CEO
Mr Collins also added investors who already have a well-established portfolio could generally take on greater risk.
Mr Collins concluded that there is not a property investment strategy that fits-all-sizes and advises anyone considering such investments to consult with a qualified professional.
~~
Before investing in any asset, please do your own independent research, taking into account your own personal financial situation. This article does not purport to provide financial advice. See our Terms of Use.
