Geraldton house prices rise by 88 per cent over five years, recent Domain data shows another uptick

Geraldton house prices are on an “unsustainable” incline, according to a local sales expert, as new data reveals home values have jumped by 18 per cent since last year.

Statistics from the Domain House Price Report for the June quarter have measured prices sitting at a median of $650,000 — up $100,000 from the same time last year.

The report also highlighted house prices in the Greater Geraldton region had skyrocketed by 88 per cent over the past five years.

The median house price in Geraldton in June 2021 was $345,000.

Director of Geraldton Property Team David Potiuch said it was unsurprising to see the annual 18 per cent increase, but he noted it was unsustainable.

“It’s a jolting annual change,” he said.

“In Geraldton, we sort of follow the Perth market, and for the last 12 months, Perth has been increasing as well.

“We have still had strong investor interest here over the last 12 months, with a lot of Eastern State investors and buyer’s agents.”

From here, Mr Potiuch said he was expecting things to “slow down a bit” based on the new negative gearing changes set to come into play.

He also noted it was good to see property growth as it was usually the “No.1” asset for families, and having their home go up in value was a positive aspect.

In terms of growth increasing by 18 per cent in the last year, and 88 per cent over the last five years, Mr Potiuch said it was in no way sustainable.

However, he noted the market had seen these kinds of peaks and troughs before.

“It’s all just a cycle,” he said.

“I think as a buyer, it’s important to have your finances pre-approved and be in a strong position for when you are ready to buy — don’t expect things to keep growing. If you buy something, do it with the long term in mind.”

The report noted other areas in regional WA had also experienced a lift in prices, with the local government areas of Kalgoorlie-Boulder, Busselton, Waroona, Capel and Esperance experiencing the highest price growth over the quarter.

Alhough Geraldton has seen an increase over the past year, the broad-based housing boom which has lasted for three years has come to an end, according to Domain.

The June quarter report revealed combined capital city house prices fell by 1.4 per cent over the quarter, while unit prices dropped by 1.2 per cent.

This downturn ended the longest uninterrupted run of quarterly growth since 2012-2015.