Western Australia's Karratha posted a significant increase in both median rent and house price during the December quarter, according to the latest industry figures from the Real Estate Institute of Western Australia (REIWA).
Over the quarter, the median weekly rent in Karratha increased by 26% to $620, while the median house price jumped by 6.8% to $390,000.
"After a turbulent few years following the slowdown in the mining sector, Karratha is starting to reap the benefits of renewed investment in mining and gas projects in the Pilbara, which is having a positive impact on the property market," said Damian Collins, president of REIWA.
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Karratha is just one of the seven Western Australian regional centres that reported an increase in median weekly rent over the quarter.
"Data shows that the other mining regional areas also performed well. Port Hedland saw an increase of $50 per week and Kalgoorlie witnessed a growth of $8 per week," Collins said.
Of the nine regional centres, only Albany and Geraldton did not see an increase in median weekly rents.
The table below shows the changes to median weekly rents in Western Australia's regional centres:
WA Regional Centre |
Median Weekly Rent |
Quarterly Change in Price |
Annual Change in Price |
|
Albany |
$350 |
- $0 |
↓ $8 |
|
Broome |
$565 |
↑ $15 |
↑ $30 |
|
Bunbury |
$350 |
↑ $10 |
↑ $20 |
|
Busselton |
$400 |
↑ $10 |
- $0 |
|
Esperance |
$320 |
↑ $10 |
- $0 |
|
Geraldton |
$290 |
↓ $5 |
- $0 |
|
Kalgoorlie-Boulder |
$368 |
↑ $8 |
↑ $18 |
|
Karratha |
$620 |
↑ $128 |
↑ $170 |
|
Port Hedland |
$450 |
↑ $50 |
↑ $30 |
|
Regional WA |
$350 |
- $0 |
- $0 |
In terms of median prices, only five regional centres managed to maintain or grow. Aside from Karratha, Geraldton and Broome witnessed increases of 5% and 1.4%, respectively. Bunbury and Albany also recorded growth, albeit only at a marginal level.
With regards to sale activity, only three registered an increase: Busselton (13%), Kalgoorlie (6%), and Geraldton (2%).
"Despite this, most of the regional areas also had a decrease in sales listings over the quarter, which is the same trend we are seeing in the rental market and demonstrates current stock is being absorbed at a faster pace than new supply entering the market," Collins said.
