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Interest from eastern states investors has seen Western Australian property run hot over the March quarter of 2025, with Geraldton emerging as the primary hotspot, even as signs of a slowdown appeared in the state’s regional rental sector.
The Real Estate Institute of Western Australia’s (REIWA) latest data has shown that Geraldton’s median house sale price rose 6.5 per cent to $490,000 over the March quarter, up from the $460,000 recorded in the last quarter of 2024.
The data marked the second quarter in a row that Geraldton posted the strongest price gains across regional Western Australia.
REIWA regional spokesperson, Peta McKenzie, said that strong investor activity was propping up Geraldton’s continued growth, with the area being particularly popular among eastern states investors looking for dwellings in the $400,000 to $600,000 range.
“They were looking for well-presented homes offering reasonable yields. These properties generally attracted multiple offers and, in some cases, sold well above the asking price,” McKenzie said.
She said that the surge in interest put pressure on local Geraldton buyers, as interstate investors often secured properties ahead of local buyers by “offering slightly more”.
From the end of the March quarter to now, McKenzie said that the level of investor activity has slightly softened, and has led to a more even mix of buyers and investors within the Geraldton area.
Across the state, eight of Western Australia’s regional centres, including Albany, Broome, Bunbury, Busselton, Esperance, Geraldton, Kalgoorlie-Boulder and Karratha, recorded price growth over the March 2025 quarter.
Port Hedland was the only regional centre where the median house sale price declined over the quarter.
Annually, Bunbury notched up the highest growth through a median house sale price growth of 25.9 per cent to $616,995, while Geraldton emerged as the state’s second best performer with its 25.6 per cent to $490,000.
Regional Western Australia’s rental performance beginning to ease
Four Western Australia regional centres, including Broome, Busselton, Esperance and Port Hedland, recorded an increase in their median weekly rent over the quarter.
In comparison, the regional markets of Albany, Bunbury, Geraldton, Kalgoorlie-Boulder and Karratha saw their rental prices remain stable over the quarter.
Port Hedland recorded the most growth over the quarter, with its median rent increasing 11.8 per cent to $950 per week.
Despite the coastal market’s quarterly outcome for rental growth, McKenzie noted that the area’s rental performance had fluctuated over the recent quarters.
“The increase this quarter follows a 12.6 per cent decline in the December 2024 quarter,” McKenzie said.
“Over the 12 months to March, the Port Hedland market recorded more moderate growth of 5.6 per cent,” she added.
McKenzie attributed the broadly strong performance of the Western Australian regional markets to the higher proportion of leases in the upper end of the market over the quarter, which fuelled the rise in the overall median rental amount.
“Our members have reported that enquiries remain strong for properties priced between $800 to $1,000 per week, with approximately 70 per cent of enquiries coming from prospective tenants moving to the area for employment opportunities,” she said.
Despite the growth, McKenzie warned that underlying trends suggested that the rental sector in the Western Australian regional market could be easing.
She said that REIWA’s 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”.
“It’s also taking longer to lease a property, with the median time on market rising more than 50 per cent over the quarter,” McKenzie added.
Yearly, REIWA’s data showed that Esperance recorded the most growth, with its median rent price increasing 57.9 per cent to $600 per week.
However, McKenzie warned that the rent price growth in Esperance reflected challenging market conditions instead of a broader increase in 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 said.
“Some owners have also withdrawn properties from the market to accommodate family moving to the area.”
As a result of supply-based challenges, McKenzie noted that properties are frequently being leased off-market to renters that are already on agencies’ databases, which then doesn’t show up in wider rental listings data.
“Those that are advertised are generally larger of furnished properties, or in higher price brackets, and is reflected in the strong annual increase in the median rent price,” she concluded.
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