Prices surge in holiday hotspots Broome, Busselton

Western Australia's coastal holiday hotspots Broome and Busselton are experiencing surging house prices, with real estate agents reporting increased interest in regional living from city dwellers.

Both locations were the top performing regional centres in the June quarter, according to the new data released by the Real Estate Institute of WA REIWA.

Broome's median house sale price went up by 4.7 per cent to $649,000 in the past three months, while Busselton's median house sale price increased by 4.5 per cent to $610,000.

On an annual basis, both areas saw more than 15 per cent growth in housing prices.

REIWA deputy president Joe White said that the price growth was driven by people who are migrating from the cities.

He said that the local market in Broome is strong and demand for property is high with many people moving to the regional centre for a sea change.

Three companies are now flying workers directly from Busselton Margaret River Airport, which has a FIFO factor. The popular seaside communities that are more affordable are also feeling the heat, as well as the popular seaside communities that are seeing growth.

The suburb of Carey Park in Bunbury, two hours south of Perth, normally has cheaper house prices, but local real estate agents said that was starting to change.

Melanie Hurst, a Bunbury-based agent, said some areas had been overlooked until now.

She said that Carey Park has historically been undervalued.

Since rents were low for a long time, houses prices were low, but that has changed probably in the last 18 months. He said that the areas are going to enjoy a renaissance to get them up to what I would consider to be long overdue par value.

High prices are not good for everyone.

The increase in housing prices puts more pressure on regional centres already experiencing housing stress.

Just Home Margaret River community development officer Geraldine Clark said her organisation had seen an increase in the number of people experiencing homelessness.

She said there are very little rentals, very few houses for sale, and the prices of both are enormous.

We're not just lacking social housing and affordable housing, we're lacking housing in all aspects now.