Geraldton records highest house price increase across regional Australia, according to CoreLogic data

Geraldton has recorded the highest house price rise over the 12 months to October in all of regional Australia, according to fresh property data.

Figures from CoreLogic’s November Regional Market Update revealed a 28.7 per cent increase in house prices in Geraldton, and a 44.2 per cent increase in annual sales volume.

CoreLogic indicated the mining and resources sector had an influence, with Gladstone and Townsville in Queensland increasing by 27.2 per cent and 26.9 per cent respectively.

“We see some areas in the east easing as a market which means investors seek other markets in which they believe there remains room for capital growth, which creates market pressure,” Activewest Real Estate principal Phil Sorgiovanni said.

“Generally, investors go to metro areas first and as they heat up they tend to look at major regional centres. In WA it usually goes Perth, then Bunbury then Geraldton and Kalgoorlie are next to go.”

Geraldton Property Team director David Potiuch agreed, saying prices had been going up weekly.

“There’s a lot of investors still buying in Geraldton because they see a lot of good opportunity here,” he said.

“They still feel prices are quite cheap, so I’m still thinking prices will go up in the foreseeable future.”

According to the data, properties for sale in Geraldton are being snapped up quickly, on the market for an average of 29 days, down from 50 days a year ago.

Rentals have also surged over the past 12 months, with prices increasing by 14.6 per cent, or $66 per week.

Mr Sorgiovanni said the cause was due to project investment in the area.

“Current and future projects are placing considerable pressure on short-stay and long-term accommodation which is clearly shown in rental numbers and the upward pressure on costs,” he said.

“This then also leads to pressure on established homes for sale as organisations purchase homes for staff accommodation.”

Mr Sorgiovanni believed previous building incentives had forced people to purchase established houses due to increased wait times for new-builds affected by worker shortages.

He said things had plateaued meaning building was becoming a more attractive option.

“Looking to a new-build is also coming back onto people’s radar as it appears that pricing has steadied and build time frames are more acceptable,” he said.

“During this whole process land prices haven’t really taken off so when we consider the volume of land, sales should continue to increase and with that so will the price of land.”

Mr Potiuch saw both buying and renting increasing in the future, but said purchasing could be a more affordable option long term in Geraldton.

“If you’re going to be renting here in Geraldton for a few years, contact your broker because you might be surprised,” he said.