Albany tops regional house price growth for December 2025 quarter

Low supply of established homes, ongoing issues with new supply and consistently strong demand saw all WA regional centres record median house sale price growth in the December 2025 quarter and over the year.

The Albany regional centre was the top performing regional centre for median house sale price* growth in the December quarter.

Its median house sale price rose 5.5 per cent to $722,500 over the three months to December, up from $685,000 in the September 2025 quarter.

Albany was also the top performing regional centre for 2025, with the median house sale price increasing 25.7 per cent over the year.

REIWA Regional Spokesperson Peta McKenzie said the Albany market was currently dominated by owner occupiers, with a large proportion of these buyers coming from outside the area.

“The Albany regional centre offers an extremely attractive lifestyle and members are reporting a lot of interest from Perth buyers relocating south. They’re selling for very good prices in Perth and getting good value for money in this beautiful coastal area,” she said.

“Significant improvements to infrastructure in Albany, particularly medical facilities, have also made it a more viable area for people looking to downsize, from within and out of the region. 

“For local residents, these improvements allow them to stay in the region they love and remain close to their community, and our members are reporting a good number of buyers are people downsizing from rural property to the metropolitan area.”

Ms McKenzie said demand for homes priced under $850,000 was high.

“With such strong buyer interest, there is heated competition for available homes. People who are selling a property to move to Albany are in a strong purchasing position, while conditions are very challenging for first home buyers,” she said.

“The Federal Government’s 5% deposit scheme has a price threshold of $600,000 for areas outside of Perth and Peel, which is of little benefit in regional areas like Albany where the median house sale price is well over this level.”

Ms McKenzie said strong price growth in the Albany regional centre was underpinned by a lack of new supply. This maintained the demand for established homes.

“There are very few blocks of land for sale and demand is high. One member reported a recent listing of a block that received three offers within 24 hours of being advertised. Two of those offers were from potential buyers that hadn’t seen the property,” she said.

“And for those who do buy land, it is difficult to get a builder.

“Members say there is land that could be developed and made available, but there are major delays getting power and water connected. In some cases, it can take 12-18 months to get power to a site.

“These challenges continue to see people choose to buy an established home. Until conditions improve, we will see prices continue to rise.”

Issues with new supply were seen throughout the regions.

“Within Geraldton, there has been well-priced land available, but there are significant delays in getting a builder,” Ms McKenzie said.

“Further north, in Karratha, you experience the ‘Pilbara tax’, which can add 20-30 per cent to the cost of building a home.

“Members in the South West report building costs, a lack of land, and delays with red tape are reducing the opportunity and appetite to build in the region. In one instance, a member in Bunbury sold a 300sqm block for $320,000. The buyer has put the block back on the market, noting the house they want to build won’t fit on the block and it would take over 12 months to build. They have chosen to buy an established home instead.”

Regional rental market

In the rental market, the median weekly rent price rose in four regional centres over the December 2025 quarter. It was unchanged in four and declined in one.

Esperance recorded the most growth over the quarter, with its median weekly rent increasing 18.6 per cent to $575. However, it’s median rent price declined 0.9 per cent over the year.

“Very few properties come up for lease in Esperance compared to other regions, and this can see large movements in the median rent price over a quarter, depending on the type of property that becomes available. If they are in higher price brackets, this can see the median price rise significantly,” Ms McKenzie said.

“The low number of advertised properties is often a result of tenants renewing existing leases. Because the market is so tight, many tenants are holding onto the home they have and absorbing any rent increases.

“In addition, there is not a lot of new supply coming to the rental market.

“Conditions make it very challenging for people moving to the area to be able find a home to rent, and as with many regions, the area needs more social and affordable housing.”

Ms McKenzie said rental supply was getting a boost in some regions.

“After reduced activity through 2025, investors have returned to some regional centres, but for varying reasons,” she said.

“In Karratha and Port Hedland, the comparatively lower house prices and higher rent prices are attracting investors driven by a good yield. This can be nine to 11 per cent in some cases.

“In Busselton, there is renewed interest from East Coast buyers who are looking to retire to the area in five to 10 years. They’re attracted by the lifestyle the region offers and the value they can get for their money.”

Median house price growth

* REIWA publishes an annual median sale price based on pending and settled sales.

Median weekly rent