Lot release sells out in 48 hours as demand outpaces supply in WA

An early lot release at a residential housing estate in Margaret River has sold out in 48 hours in another sign that demand is outpacing supply in Western Australia.

Goldfields state director Gareth Wilson said record sales and buyer enquiries at its Spindrift estate fuelled another advanced release with sea changers and FIFO workers among those taking advantage of the affordable entry point in the high demand, regional market.

Demand is high for vacant land and housing in regional WA.

He said the company was now looking to bring forward its fourth release early to keep up with soaring demand.

“According to CoreLogic, Margaret River’s median house price has grown 11.4 per cent over the 12 months to March placing its growth ahead of major centres such as Sydney, Melbourne, and Canberra,” he said.

“Margaret River’s record low vacancy rate of 1 per cent, soaring rents up 29.8 per cent, and acute worker accommodation shortage were all major factors attracting buyers.“

The lots in the release ranged from $222,500 to $249,500, below the WA average of $279,974, despite being larger.

According to the latest UDIA WA Urban Development Index, the average WA lot is $279,974 and 367sqm.

The Spindrift estate is located 3km south of Margaret River on 47 hectares.

Future resident Luke Bridges said he was attracted the large block sizes and competitive land prices.

“Every block felt unique rather than the standard cookie cutter approach that you find everywhere,” he said.

“My family and I are looking forward to the freedom that comes with owning our own home in a regional community.

“We can’t wait to enjoy the Margaret River lifestyle of beaches, nature walks, and knowing-your-neighbour living.”

Growth in regional dwelling values and rents are at record highs said CoreLogic economist Kaytlin Ezzy with WA home to some of the best performing regional markets spotted along the coastline.

“The diversity in economic activity across these parts of regional WA including agriculture, tourism, ports and mining would be contributing to the strength of these markets, along with their higher levels of interstate migration, relative affordability and low supply levels,” she said.

Sales activity for established homes has also been strong in the South West with Bunbury emerging as the top-performing regional centre for the March 2024 quarter, according to the latest data from REIWA.

Its median house price rose 5.9 per cent to $487,000, up from $460,000 in the December quarter.

REIWA President Joe White said there was strong activity across all price points, but the market was particularly competitive for houses priced around $600,000.

“Bunbury is attracting interest from a wide range of buyers including east coast investors, first home buyers looking to exit the rental market, and people from Perth or other regional centres looking for a lifestyle change,” he said.

“Our members aren’t expecting a slowdown over winter and are forecasting strong growth over the next quarter.”

Eight of the regional centres recorded price growth over the quarter. Karratha was the only regional centre where the median house price declined.

Annually, Port Hedland saw the highest growth, with the median house price rising 15.5 per cent to $540,000.

Bunbury was the state’s second-best performer, recording 14.6 per cent growth over the year, followed by Busselton (11.1 per cent) and Albany (7.4 per cent).

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