The Western Australian regional property market continues to showcase its diverse and dynamic nature, with the March 2025 quarter revealing significant trends for both sales and rentals. According to the latest data from the Real Estate Institute of Western Australia (REIWA), Geraldton has emerged as a standout performer, while rental markets across various centres tell unique stories of supply and demand. Let’s delve into the key insights.

Geraldton Shines: Investor Interest Fuels Sales Growth

For the second consecutive quarter, Geraldton has claimed the title of the top-performing regional centre, with its median house sale price experiencing a robust 6.5 per cent increase. This pushed the median from $460,000 in the December 2024 quarter to an impressive $490,000 by the end of March 2025.

REIWA Regional Spokesperson Peta McKenzie highlighted the driving force behind this surge: “The Geraldton market recorded continued growth over the March quarter, driven by strong investor activity.” She noted a particular influx of interest from Eastern States investors, who were keenly targeting properties in the $400,000 to $600,000 price bracket. “They were looking for well-presented homes offering reasonable yields,” Ms McKenzie explained. “These properties generally attracted multiple offers and, in some cases, sold well above the asking price.”

This heightened investor activity did create a more competitive environment for local buyers. “REIWA members report investors often secured properties ahead of local owner-occupiers by offering slightly more,” Ms McKenzie added. However, there are early signs of a shift, with Ms McKenzie noting that “since the March quarter, the level of investor activity has softened slightly, and we’re hearing reports of a more even mix of buyers again.” This could indicate a rebalancing of the market in the coming months.

Broader Regional Sales Landscape

The positive momentum wasn’t confined to Geraldton. Eight of the nine major regional centres monitored by REIWA recorded growth in their median house sale prices during the March quarter. For instance, Albany saw a healthy 4.3 per cent rise to a median of $600,000, while Karratha experienced a significant 6.1 per cent jump to $610,000. Busselton continued its steady climb, with its median increasing by 1.1 per cent to $880,000. The only centre to see a slight dip was Port Hedland, where the median house sale price declined by 2.2 per cent to $525,000.

Looking at the annual picture, Bunbury takes the crown for the highest growth over the past 12 months. Its median house sale price soared by an impressive 25.9 per cent to $616,995. Geraldton wasn’t far behind, with its annual growth reaching a strong 25.6 per cent, reinforcing its consistent upward trajectory. Other notable annual increases include Albany (+17.6%) and Busselton (+17.3%).

Navigating the Regional Rental Market

The rental market across regional WA presented a varied landscape in the March 2025 quarter. While median weekly rent prices rose in four regional centres, five maintained stability.

Port Hedland’s Rental Fluctuations: Port Hedland experienced the most significant quarterly rental growth, with its median weekly rent increasing by 11.8 per cent to $950. However, Ms McKenzie pointed out the context of this movement: “The increase this quarter follows a 12.6 per cent decline in the December 2024 quarter.” She added that “over the 12 months to March, the Port Hedland market recorded more moderate growth of 5.6 per cent.”

A key factor influencing this quarterly rise was the type of properties leased. “REIWA data shows a higher proportion of leases in the upper end of the market this quarter, which contributed to the rise in the overall median,” Ms McKenzie stated. Demand remains strong, particularly for properties priced between $800 to $1,000 per week, with approximately 70 per cent of enquiries originating from individuals relocating for employment opportunities.

Despite this quarterly jump, underlying trends suggest some easing in the Port Hedland rental market. “Our members reported a slower start to the year, with fewer applications per property and some landlords needing to adjust their asking rents to secure tenants,” Ms McKenzie observed. “It’s also taking longer to lease a property, with the median time on market rising more than 50 per cent over the quarter.”

Esperance: A Story of Tight Supply: Annually, Esperance recorded the most substantial median rent price growth, surging by an incredible 57.9 per cent to $600 per week. However, Ms McKenzie cautioned that this figure reflects challenging market conditions rather than a widespread increase in all rental prices. “Very few properties are being advertised for rent – many tenants are staying where they are, either to avoid the challenge of finding another property or because the construction of their new home is taking longer than expected,” she explained. Supply has also been impacted by “some owners who have also withdrawn properties from the market to accommodate family moving to the area.”

This scarcity means many properties are leased off-market to existing databases, so they don’t appear in public listings. “Those that are advertised are generally larger or furnished properties, or in higher price brackets, and this is reflected in the strong annual increase in the median rent price,” Ms McKenzie concluded.

Other centres like Albany ($550), Bunbury ($600), Geraldton ($520), Kalgoorlie-Boulder ($650), and Karratha ($1,100) saw their median rents remain stable over the quarter, though most recorded annual increases, such as Geraldton (+15.6%) and Albany (+10.0%).

Looking Ahead

The March 2025 quarter underscores the unique dynamics at play within each of Western Australia’s regional centres. From investor-driven sales growth in Geraldton to supply-constrained rental markets like Esperance, understanding these local nuances is key.

Whether you’re looking to invest, sell, buy, or rent in regional WA, our team at Holdsworth Real Estate has the local expertise to guide you. Contact us today to discuss your property goals and how we can help you navigate this evolving market.