First home buyers are spearheading a significant property price surge across Western Australia's regional centres, with new data revealing growth is now outpacing the Perth metropolitan area. Driven by comparative affordability and lifestyle appeal, this trend is creating intensely competitive conditions, particularly for homes priced below $700,000.
Regional Growth Outstrips Perth
According to the latest reiwa.com data for the September quarter, eight out of nine major regional centres recorded median house price growth at or above 2.3 per cent. This collective regional performance eclipsed the growth seen in Greater Perth, which stood at two per cent for the same period.
The southern coastal hubs of Albany and Esperance experienced the most dramatic upward movement, highlighting the breadth of buyer demand across the state. Albany's median house sale price jumped 6.3 per cent in three months to reach $680,000, marking an extraordinary annual increase of 23.6 per cent.
Esperance followed closely, with its median price rising 5.9 per cent over the quarter to $540,000, representing a 14.9 per cent lift over the past year.
First Home Buyers Dominate Competitive Market
REIWA President Suzanne Brown noted that while investors are active, the market is being dominated by first home buyers originating from both Perth and local areas. Perth-based buyers are increasingly relocating, motivated by the dual benefits of housing affordability and a regional lifestyle change.
"Below the $700,000 price point, competition is particularly strong," the report states. Local agents are reporting extremely high enquiry levels, multiple offers on listings, and properties frequently selling above their asking prices.
Geraldton, after a powerful performance last year, has maintained its upward momentum with quarterly growth of 4.8 per cent and an annual surge of 27.9 per cent. Agents across the regions consistently report that demand is outstripping supply for both established homes and land, a fundamental driver of the current price growth.
Supply Shortage Defines Market Conditions
The report identifies a critical shortage of properties for sale as a key market constraint. Sellers are often reluctant to list their homes due to a lack of viable options for their own next purchase. Compounding this issue, new housing supply in regional areas remains constrained.
"The imbalance between supply and demand is a key driver of the strong price performance we are currently observing," the analysis concludes. Even in centres like Broome, Port Hedland, and Kalgoorlie-Boulder, where the upward price trend was more moderate, market conditions remain tight. Properties that are well-presented and in affordable brackets continue to attract strong interest and sell quickly.
This environment of fierce competition among buyers, fuelled by first home buyer activity and critically low stock levels, is now the defining feature of Western Australia's regional property landscape.
