During the September quarter, sales activity improved in Broome, Geraldton, Kalgoorlie-Boulder, Karratha and Port Hedland according to new figures by the Real Estate Institute of WA.
Realmark Group Managing Director, John Percudani said activity in the mining sector tended to have a flow-on impact on Perth.
“These new figures show there is renewed activity in WA’s mining towns and combined with low-interest rates, State Government investment in infrastructure and an upward turn in population growth, there are certainly tentative signs of recovery in WA,” he said.
“It is clear that the mining regions of WA are rebounding off the back of renewed mining activity and with the announcement of further mining jobs to come there is likely to be further improvements in the property markets in regional areas.”
REIWA Deputy President Lisa Joyce said the high levels of sale activity and interest from prospective buyers in these regional areas could standouts to an increase of jobs in the area, with existing companies expanding their workforce and new companies needing accommodation for their workers in the area.
“reiwa.com data found the Karratha regional area had the most notable improvements, with sales activity increasing 85 per cent and the median sale price increasing 1.3 per cent since the June 2019 quarter,” Ms Joyce said.
“From a rental market perspective, properties are in high demand in the Karratha region, which is demonstrated by a 27 per cent reduction in leasing activity and an increase of $68 per week in median rent – the highest of all regional centers for the quarter.
“It is pleasing to see the Karratha region starting to strengthen and hopefully we will continue to see an upward trend.”
Port Hedland and Broome were the other two stand outs from the September quarter, with Port Hedland’s median sale price recording the highest jump of all regional centres with a 2.8 per cent increase to $236,500, while sales rebounded 57 per cent following a particularly quiet June quarter.
Broome saw an increase of 41 per cent in sales activity and a 26 per cent reduction in sales listings.
Chief Economist at realestate.com.au, Nerida Conisbee, said activity in the regional areas of WA always seemed to bode well for city property prices.
“Many mining towns are also seeing increases — prices in Newman jumped by almost 40 per cent since mid last year. When WA mining towns do well, this does seem to flow on to Perth pricing as well,” she said.