Bunbury was the top performing regional centre for the September 2023 quarter, recording a 3.5 per cent increase in its median house price for the three-month period.
Its median house price went up from $430,000 in the June 2023 quarter to $445,000.
Real Estate Institute of WA president Joe White said Bunbury, like many regions in the State, was experiencing strong demand for established homes and this was putting upward pressure on prices.
"Houses in the Bunbury regional centre sold in a median of 15 days, which is eight days faster than the previous two quarters," Mr White said.
"This reflects the high demand.
"Population growth, combined with the challenges in the rental market and ongoing constraints in the building industry, are maintaining demand for established homes."
Bunbury saw a lot of activity at the lower end of the market during the September quarter.
"With 13 interest rate rises since May 2022, affordability is important to buyers, and Bunbury is relatively affordable, particularly when you compare it to Perth and Busselton," Mr White said.
"It's close to Perth, offers the benefits of a South West lifestyle and is close to many other attractions of the South West."
Mr White said, as a large regional centre, Bunbury also offered a lot of employment opportunities, and these were set to grow with plenty of development occurring in the area.
Five of the nine WA regional centres recorded price growth over the latest quarter, one remained stable and three recorded declines.
Annually, Port Hedland recorded the most growth, with its median house price rising 9.1pc over the year to $500,000.
Bunbury was the second-best performer with an 8.5pc increase in its median house price.
In the rental market, five regional centres recorded an increase in median weekly rent over the quarter.
Two remained unchanged and two fell.
Karratha had the most growth, with its median weekly rent increasing 23.1pc to $1200.
While rent prices are rising, they are still below the peak of $1750 set in the December 2011 quarter.
Mr White said rents in the North West, in particular, had seen strong growth.
"The median weekly rent in Karratha has increased 60pc in the past year," he said.
"Port Hedland has seen 19.1pc growth.
"While building constraints are having an impact on all markets, they are greater in regional areas, such as the Pilbara.
"It is difficult to get trades and materials, the cost of building has risen significantly and is prohibitive for many people.
"As a result, there is pressure on the rental market to meet the needs for housing."
