The Real Estate Institute of Western Australia (REIWA) set records for Port Hedland, recording a median sale price of $430,500, up 44.7% from a year earlier, making it the market best performing regional in the state. for 2021.
Additionally, it recorded a 6.3% increase in the median home sale price for the December quarter, earning the prestige of being the best-performing regional center for that period.
REIWA Vice-Chairman Joe White attributed the price growth to two forces: the resurgence of Western Australia’s mining industry and the Western Australian government’s voluntary buy-back program.
“Mining companies’ desire for a more localized workforce has had a big impact on the number of people looking to buy homes in Port Hedland, which has created more competition and driven up prices,” explained Mr. White.
Meanwhile, the buyout scheme is part of the Western Australian government’s initiative to buy out residents of the historic part of town to minimize the number of people living near the dust-polluted harbour.
According to Mr White, the scheme ‘provided residents with the opportunity to sell their property at a government-guaranteed market price’.
These developments have enabled the region to emerge from the slump it had experienced when the borders were closed.
“Pilbara was one of the hardest hit places in the state for house prices during the recession. Home values have plummeted and many people have experienced financial hardship as a result,” Mr White said.
Port Hedland maintained a healthy median sale price of $542,000, 54% lower than its peak of $926,000 in 2013, despite strong annual price growth.
Mr White is optimistic that the local market will strengthen further in the coming months: “Although we have seen significant price growth in Port Hedland over the past year, there is still some way to go for reach the highs of 2013 and plenty of price growth still to be had.
Other WA Regional Centers
In 2021, all nine regional centers saw increases in median home sales prices, with six seeing an increase in the December 2021 quarter and three seeing no change.
Of the nine regional centres, Geraldton and Broome were the second and third best performers of the year. Geraldton saw a median home sale price rise of 22.8% to $356,000, and Broome saw a 17.6% rise to $600,000.
The substantial price growth in Geraldton and Broome can be attributed to a change in lifestyle, according to the REIWA vice president.
“Local agents on the ground in Geraldton and Broome said a combination of the tourism boom and strong demand for rentals has seen an increasing number of people buying property in these areas, causing prices to soar,” said Mr. White.
He predicted an increase in the number of people drawn to the areas for the lifestyle opportunities and increased security they provide, especially with Western Australia’s tight border restrictions during the pandemic that has held COVID -19 ranged.
Property refers to something tangible or intangible over which an individual or business has legal rights or ownership, such as houses, cars, stocks, or bond certificates.