Geraldton rental costs expected to keep going up in 2022 as agents celebrate record-breaking year for sales

Real estate agents expect Geraldton rental prices to keep rising in 2022, but predict the increases won’t be as steep as those seen in the past 12 months. Experts are also predicting house prices will keep climbing at a rapid rate next year. Rents in several Geraldton suburbs skyrocketed in 2021 on the back of historically low vacancy rates. The cost of renting in Sunset Beach shot up 26.6 per cent in the 12 months to November — the third highest jump of any suburb in regional WA, according to property analysts Corelogic. A typical home in Spalding is setting tenants back $355 a week (up 22.3 per cent), while the average property in Mount Tarcoola would cost $424 a week (up 21.7 per cent). Rental rises were similar in Drummond Cove (up 21.2 per cent) and Bluff Point (20.8 per cent). Real Estate Institute of WA deputy president Joe White said he could not see rent prices dropping off in 2022, but expected the market to level out somewhat. “I think rents will go up a little more next year but it will be tapering,” he said. “I’m not seeing a long-term trajectory for these kinds of growth rates, simply because it isn’t affordable. “The only way we are going to get downward pressure on rents is more roofs over heads. We need more housing supply and to do that we need to attract more investors into the market.” Rental vacancy rates in Geraldton were unchanged over the month of November, sitting at 1.1 per cent. Geraldton Property Team director David Potiuch agrees rents will keep rising next year because people were still willing to pay more than what is being advertised. He said new housing stock built using the COVID-19 government grants would not be enough to seriously impact prices. “It will help but I don’t think it’s the silver bullet because it’s just not going to be enough,” he said. “A lot of the building works are slowing down because they can’t get materials. They aren’t turning them over as quick.” Property values in regional WA rose 16 per cent over the last 12 months, with REIWA expecting the purple patch to continue. Homes in Rangeway shot up 48.8 per cent in the 12 months to November, while properties in Spalding increased 42.2 per cent, according to Corelogic. The average home in Drummond Cove is now priced at just over $421,000 after values soared 39.3 per cent. Mr White said the lifestyle and seclusion of regional cities like Geraldton would remain an attractive proposition in the COVID-19 era. “There’s a little bit of doomsday prepper in all of us,” he said. “While the prices have gone up it’s still very affordable compared to the east coast and Perth.” Agents like Mr Potiuch are celebrating a very busy 2021. His office sold 67 properties in November —the highest number of sales they have ever had in a single month. “There isn’t much for rent, but there’s still lots for sale,” Mr Potiuch said. “It’s not a seller’s or buyer’s market at the moment — it’s quite neutral ground. Next year it will probably swing towards being a seller’s market. “If you’re thinking of buying, I would recommend getting that wheel turning now.”