Broome Property Market Update 1st Half of 2022
In Q4 2021, Broome, which for this report represents the suburbs of Broome, Cable Beach, Bilingurr, and Djugun, had a median house price of $649,000, and a median unit price of $348,500. This represents annual (Q4 2020 – Q4 2021) median price growth of 17.5% for houses and 30.5% for units. Between Q4 2020 – Q4 2021 total sales increased, by 5.1% for houses (to 123 sales) and by 76.2% for units (to 74 sales). This suggest a real return in investment, as median price growth is alongside higher sale numbers. The Broome market is undervalued, now is an ideal time for owner-occupiers to transact.
Average vendor discounts between Q4 2020 and Q4 2021 have tightened for both property types, to -1.7% for houses and -1.0% for units, the tightest discounts reported in the past 3yrs. Market conditions in Broome have now shifted to favour sellers, where buyers are willing to offer close to the initial listing price.
In December 2021, house rental yields in Broome were recorded at 6.6%. Rental yields in Broome have increased as in the 12 months to Q4 2021 median house rental price increased by 23.1%, which is higher than median house sale price growth (17.5%). Median house rental price in Q4 2021 was $720 per week, while average days on the market trended at a low 24 days. Overall, this represents a resilient rental market throughout COVID-19.
4+ bedroom houses have provided investors with +35.7% rental growth annually, with a median rent of $950 per week.
Also in December 2021, Broome recorded a vacancy rate of 0.5%, below that of Broome LGA (0.6%) and Perth Metro (1.2%). Vacancy rates in Broome remain well below the Real Estate Institute of Australia’s healthy benchmark of 3.0% and have trended within 0.5% in the past 18 months, even amidst COVID-19 conditions. This confirms there is still a healthy rental demand and investors can be confident of a conducive investment environment in Broome.
