Broome Property Market Update 2nd Half of 2020
In the 1st half of 2020, Broome recorded a median house price of $435,000, and a median unit price of $253,750. This represents annual (H1 2019 – H1 2020) median price softening of -3.3% for houses and price growth of 2.5% for units. During this time total sales slowed, by -34.9% for houses (to 41 sales) and by -20.0% for units (to 8 sales). Broome property market price growth has proven to be relatively resilient during COVID-19, and with few competing properties now is the time to transact in the market.
Average vendor discounts between H1 2020 and H2 2020 have tightened for both property types, to -6.7% for houses and -8.0% for units. Market conditions in Broome provide unique opportunities. Sellers can now achieve a final sale price closer to their first list price, whereas buyers can benefit from a discount.
Over the past 12 months, house rental yields Broome have remained steady to sit at 5.7% in June 2020. This suggests the house rental market is in a healthy position, particularly when combined with fairly steady demand for rental properties in Broome across the same time period, with 169 house rentals in Q2 2020.
4+ bedroom houses have provided investors with +3.8% rental growth annually, achieving a median rent of $685 per week.
Broome recorded a very low vacancy rate of 0.8% in June 2020. This represents a stable vacancy rate compared to June 2019 and a declining trend since December 2019, quite the opposite to vacancy rates expectations during COVID-19. Further Broome’s vacancy rate is lower than Perth Metro’s already low 1.5% average. This confirms a healthy rental demand exists for properties in Broome, and investors can be confident of quicker occupancy of investment properties.