Broome Property Market Update 2nd Half of 2021

In H2 2021, Broome recorded a median house price of $575,750, and a median unit price of $260,000. This represents annual (H2 2020 – H2 2021) median price growth of 30.1% for houses and 4.4% for units. Between H2 2020 – H2 2021, total sales increased, by 101.7% for houses (to 117 sales) and by 73.1% for units (to 45 sales). Median price growth alongside increased market activity suggests real returns on capital investment. This indicates an advantageous time for owner-occupiers in Broome to transact. First home buyers need to act fast, in order to secure limited affordable stock.

Average vendor discounts between Q2 2020 and Q2 2021 have tightened for both property types, to -1.4% for houses and -2.8% for units. Market conditions in Broome offer unique opportunities, as sellers can now achieve final sale prices closer to their first list price, yet buyers can still benefit from a slight discount.

In June 2021, house rental yields in Broome were recorded at an average of 5.6%. In the 12 months to Q2 2021, median house rental price increased by 14.0% to reach $650 per week, while average days on the market declined by -40.6% (to 19 days). Overall, this suggests the Broome rental market has been very resilient throughout COVID-19.

2 bedroom houses have provided investors with +56.3% rental growth annually, with a median rent of $500 per week.

Also in June 2021, Broome Postcode 6725 recorded a vacancy rate of 0.1%, slightly below Cable Beach Postcode 6726 (0.2%) and below Perth Metro (0.9%). Vacancy rates in both postcodes continue to decline, recording historical lows in the past 3 months, and remaining well below the Real Estate Institute of Australia’s healthy benchmark of 3.0. This confirms there is a strong level of rental demand, thus investors can be confident of a conducive investment environment in Broome.