Broome Property Market Update 1st Half of 2024
In Q4 2023, Broome recorded a median house price of $685,000, and a median unit price of $390,000. This represents annual (Q4 2022 – Q4 2023) growth of 3.0% for houses and a minor softening of -2.5% for units. Total sales declined during this time, by -13.3% (to 65 sales) for houses and by -8.0% for units (to 23 sales). There is an undersupply of houses, as median price growth is accompanied by lower sales. This created a barrier during a successive cash rate hike period; thus, owners continue to benefit from their investment. Units have become more affordable, with seemingly less competition. This creates an opportunity for buyers.
Average vendor discounts between Q4 2022 and Q4 2023 have tightened to a discount of -3.4% for houses and -1.1% for units. Market conditions in Broome continue to favour buyers, where vendors are willing to accept below the first list price. That said Q4 2023 recorded the tightest average vendor discount in the past 18 months, indicating there is a slight shift towards a sellers’ market. Those looking for a discount need to act swiftly.
House rental yields in Broome was 7.3% in December 2023, higher than Perth Metro (4.4%). This was paired with a 5.6% increase in the median house rent price in the 12 months to Q4 2023, to $950 per week, and a -33.8% decline in the number of houses rented (to 51 rentals). The same pattern can be seen in the unit market, which suggest an undersupplied rental market. This is attractive for investors looking to expand their portfolio.
4+ bedroom houses provided investors with +9.1% rental growth annually, of $1200 per week.
Broome recorded a vacancy rate of 0.6% in December 2023, which is slightly higher than Perth Metro’s 0.4% average. Vacancy rates in Broome did show an increasing trend in the past 6 months, due to investors returning to market and capitalising on a tight market. That said both Broome and Perth Metro’s vacancy rates sit well below the Real Estate Institute of Australia’s healthy vacancy rate benchmark of 3.0%, suggesting quicker rental occupancy These key indicators create a conducive and sustainable environment for investors, even with an increase in median house sale prices in the past 12 months to Q4 2023.
