Federal Budget tax changes triggered sharp pullbacks in investor activity across most Australian markets, but Western Australia’s regional centres tell a more nuanced story. While Perth saw a clear drop in purchasing, several mining and regional towns continue to draw investor interest, driven by rental yields and cashflow fundamentals that are hard to find elsewhere.
The contrast with east coast markets is sharp. Where Sydney and Melbourne investors are grappling with negative gearing at current prices and rents, parts of regional WA still offer the prospect of properties that pay for themselves from day one.
Where activity held up and why
Kalgoorlie-Boulder recorded 9.4 per cent quarterly price growth to a $484,500 median in the June 2026 quarter, with weekly rents at $700. The town saw a brief rush of self-managed super fund purchases ahead of the borrowing ban, but broader investor interest has persisted. The driver is simple maths: affordable entry prices, high rents relative to purchase cost, and the possibility of positive gearing.
Karratha’s median weekly rent sits at $1,500, the highest in the state. Investors are targeting newer suburbs like Baynton and Nickol West, with a preference for post-2005 houses over units. Demand from mining companies and government departments for staff accommodation underpins rent growth, creating a structural tenant base that reduces vacancy risk.
Broome continues to attract interest, though not at the same intensity as six months ago. Weekly rents are $1,100, the rental market is tight, and vacancy rates are low. Positive gearing remains achievable, and buyer’s agents report steady enquiry.
Bunbury defied local expectations. Members anticipated the tax changes would halt investor activity entirely, but SMSF purchases increased and east coast investors remain active. Properties under $700,000 are drawing the most attention. The median weekly rent fell 3.3 per cent to $658 in the June quarter as new supply came online and demand for higher-priced executive rentals eased.
Yields vs entry cost: the trade-off shaping decisions
Port Hedland recorded 26.3 per cent quarterly rent growth to a $1,200 median, yet investor activity has cooled. The region offers strong yields and positive gearing, but buyers are waiting for clarity on how the tax changes will settle before committing capital.
Busselton presents the opposite problem. The rental market is tight, vacancy rates have tightened since the June quarter, and weekly rents sit at $800. But the median house price is $1,097,500, making it WA’s most expensive regional centre. Yields are materially lower than Port Hedland, Karratha or Kalgoorlie-Boulder, and the entry cost changes the risk-return calculation.
Geraldton has a median house price of $623,600 and strong rental demand driven by project work in the region. Weekly rents rose 9.1 per cent to $600 in the June quarter, vacancy is low, and there’s scope for further rent growth if supply stays constrained. Yet investor activity has fallen. The brief SMSF rush has ended, and the region isn’t capturing the attention that mining towns are.
Key numbers
- Kalgoorlie-Boulder: $484,500 median, $700/week rent, 9.4% quarterly price growth
- Karratha: $1,500/week median rent, highest in WA, strong SMSF and cashflow investor interest
- Port Hedland: $1,200/week rent (up 26.3% in quarter), investor activity paused but yields remain strong
- Busselton: $1,097,500 median (most expensive WA regional centre), $800/week rent, yields compressed by entry cost
- Geraldton: $623,600 median, $600/week rent (up 9.1% in quarter), low vacancy but investor interest weak
The tourism vs corporate lease divide
Esperance recorded 38.3 per cent annual rent growth to a $650 weekly median, but investor interest is low. Rental demand is strong, but the tenant mix differs from mining towns. Corporate leases, which provide higher rents and longer tenancy security, are rare. Compared to neighbouring Kalgoorlie-Boulder, Esperance has a higher median house price but lower weekly rent. For investors running the numbers, Kalgoorlie-Boulder offers better yield.
Albany saw 23.4 per cent annual price growth to a $790,000 median, but investor activity has declined post-Budget. Weekly rents rose 4.5 per cent to $700, the rental market is tight, and properties up to $800 per week are seeing strong interest. Above that threshold, demand softens, tenant affordability becomes the binding constraint.
Pressure points in the next six months
The pause in Port Hedland and Geraldton suggests investors are still digesting the full impact of the tax changes. If clarity emerges and the mechanics settle, both regions could see activity return, Port Hedland especially, given its yield profile.
Rent affordability is becoming a constraint in several markets. In Albany and Bunbury, demand drops sharply above certain weekly rent thresholds ($800 and $700 respectively). If rents push higher, vacancy could rise and yield assumptions could break.
Supply completions in Bunbury eased pressure on executive rentals. If similar pipelines deliver in other centres, rent growth could stall and the positive gearing thesis could weaken.
Mining company demand is structural in Karratha and Port Hedland, but it’s tied to project timelines and commodity cycles. A downturn in iron ore or a slowdown in major projects would reduce corporate lease demand and increase vacancy risk.
What this means if you’re considering regional WA
If yield and positive cashflow are the priorities, Kalgoorlie-Boulder, Karratha and Port Hedland offer the strongest fundamentals. Entry costs are manageable, rents are high relative to price, and tenant demand is underpinned by employment rather than discretionary spending.
If you’re targeting Busselton or Esperance, run the numbers carefully. Higher entry prices compress yields, and tenant mix matters, tourism-driven demand behaves differently to corporate leases.
Watch rent affordability. Several markets are hitting thresholds where tenant demand weakens. If you’re banking on further rent growth to maintain positive gearing, factor in the risk that tenants can’t absorb another step up.
Consider the pipeline. New supply can shift rental dynamics quickly, as Bunbury showed in the June quarter. Check what’s planned or under construction in the areas you’re evaluating.
For more context on how regional markets have performed through past downturns, see Resilient property markets Australia: 10 regions that gained through three downturns.
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General info, not financial advice.
