“People are changing direction; they may have been looking to build or extend, but are buying a near-new property instead,” he said.
“It’s a trend in Perth, but more so in the regions where it is even harder to get tradespeople and more expensive to build.”
Seven regional centres recorded price growth over the quarter, with two remaining stable. Esperance was the second top performer with its median house price rising 2.5 per cent to $410,000.
Busselton again led the way annually, recording 14.2 per cent median house price growth, with Albany the next best performer with 9.9 per cent growth over the year.
White said that the rate of price growth had been slowing across WA in the face of interest rate rises.
When it came to the rental market, the results were mixed. Five centres saw their median rent price increase, while it remained stable in one and decreased in three.
Albany again saw the most growth, with the median weekly rent rising 15.4 per cent during the quarter.
“The rental market remains very tight in Albany,” White said.
“It’s a problem of supply. Our members say there hasn’t been an increase in the number of properties available for rent in Albany. Investors have been selling and not many have been buying over the past year.
“It’s a problem seen across most of the State and the lack of supply, coupled with strong demand is pushing rent prices up.”
The Regional Australia Institute released data on Thursday that shows one in five are considering a move to the regions as the cost of living bites.
Researchers found people in Perth were most likely to consider a move to a regional centre that’s less than four hours away from the city to towns like Bunbury and Margaret River.
Regional Australia grew by 70,000 people in 2020-2021 due to changing migrations patterns caused by the pandemic. In 2023, regional migration was up 16 per cent on pre-pandemic levels, despite a small uptick of regional Australians returning to the cities.
According to the study, which surveyed more than 1000 residents in major capital cities, the top three reasons for wanting to leave the city were to reduce the cost of living, avoid traffic, and minimise stress.
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With flexible working arrangements more common, 73 per cent of those surveyed said their ability to work from home has further fuelled the appetite for a move to the regions.
However, 55 per cent said they wanted to remain within a two-hour drive of their current city home.
In WA, large coastal regions have grown significantly in their appeal with 56 per cent of people considering moving to these regions, a 14 per cent increase from 2020.
Regional Australia Institute chief executive Liz Ritchie said people were realising a move to regional Australia didn’t mean compromising your career, income or lifestyle.
Aunty Yvonne Green is a former Perth local who moved to Esperance after a long and successful career in the education sector.
Yvonne Green made the move from the city to Esperance.
She said she enjoyed the easy, friendly lifestyle the coastal town offered.
“In the city everything is so fast, everyone is in a rush, but in the country you walk at your own pace,” she said.
Green said housing was more affordable in the regions and Esperance had all the services people needed.
“The education and health system is good and we have a lot of doctors,” she said.
“I do miss having more shops but buying things online is the new way for our family.”
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