Nina Salvatore, a nurse from Melbourne, has been exploring job opportunities across Australia. During her travels, she developed a fondness for the lifestyle in Albany, a city on Western Australia’s south coast. "It does feel like it's a really good balance for opportunity for work and family and that balanced lifestyle and not having that traffic or city stress," she said.

For the past eight months, Salvatore has been searching for a home in Albany. However, the local housing market has posed challenges. "When I have gone to a house inspection, there is already 50 other people there, and it feels almost pointless," she explained. "It sort of feels like it's determined that someone will offer more, when there are so many other people there, some of whom would be investors." Salvatore plans to continue her search until next year but may consider relocating back east if she cannot find a suitable property. "I would move back east and try and find somewhere I could potentially buy a house," she added.

Albany's real estate market has seen significant changes. Kyle Sproxton, a local real estate agent, noted, "The secret of Albany is now well and truly out. People have fallen in love with the lifestyle, and we have found ourselves in this position." According to a report by Cotality, the median house price in Albany rose from $571,811 to $698,667 in the year leading up to September, marking a 22.2 percent increase. This surge made Albany the city with the highest growth in house prices in regional Australia and second overall in the country, just behind Palmerston in Darwin.

Sproxton attributed the price increase to low inventory and high demand, stating that buyers are often offering 10 to 15 percent above the asking price. He highlighted the drastic change in listings, saying, "Prior to COVID, I had 27 listings, and now I currently have one, a single residential listing." He also pointed out a shortage of affordable land for new construction.

City of Albany Mayor Greg Stocks remarked on the growing interest in regional living. He mentioned that several developments are expected to come to market in the next three years. "Seven hundred and twenty lots will hit the market in North McKail between 12 and 18 months from now," he said. Stocks emphasized the need for government support to develop infrastructure and prevent further price escalation.

Despite the competitive market, some sellers are prioritizing community connections over higher bids. Kim Boothman and her husband Jay recently sold their family home. Although the highest offer was from a buyer intending to convert the property into short-term accommodation, they chose to sell to local residents Andy McKinnon and Floss Munro. "We wanted that to continue," Boothman said, referring to the neighborly relationships they had fostered.

Ray Stocker from RJS Property Advisors noted the significance of the human element in real estate transactions. "It was important to the sellers in this instance that they had a family that appreciated the house and wanted to be involved with the community, so they did not go for the higher offer," he explained. He added that Albany's market has become competitive, with many buyers drawn by the affordability and lifestyle. "People look at the affordability and lifestyle in Albany, and when they can sell their home in Perth, pocket some money, and purchase a spot here, they go for it," Stocker said.