• Sales activity and median house price increase in regional WA

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    Regional WA experienced an improvement in sales activity and median house price during the September 2018 quarter.

    REIWA President Damian Collins said the overall regional median had increased 7.8 per cent to $345,000, while overall sales were up 1.2 per cent.

    “It’s the first time this year we’ve seen overall sales activity and median house price improve simultaneously in regional WA. The results of the September quarter are very promising and suggest a recovery is not too far away.

    “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,” Mr Collins said.

    Median house price

    reiwa.com analysis shows five of regional WA’s 11* regional centres had stable or increased medians during the quarter.

    “Albany was the top performing regional centre during the quarter, with its median lifting from $339,000 to $430,000 – a 26.8 per cent increase. 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 centres to experience quarterly improvements in median 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 was stable.

    Sales activity

    Six of regional WA’s 11* regional centres saw an increase in sales during the September 2018 quarter.

    “Broome saw the biggest increase in sales growth during the quarter, lifting from 20 sales in the June 2018 quarter, to 38 sales this quarter – a 90 per cent increase,” Mr Collins said.

    “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, while neighbouring regional centre Karratha also recorded 91 sales, an improvement of 23 per cent on last quarter.

    “The Pilbara region remains one to watch, with the announcement of three new mining projects in the region by BHP, Rio Tinto and FMG 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.”

    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), while activity in Albany was stable.

    “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.

    *Carnarvon has been omitted due to recording fewer than 10 sales during the September 2018 quarter.

    For more information about your local area, visit the WA market page.