Broome Property Market Update 2nd Half of 2023
In Q2 2023, Broome recorded a median house price of $639,000 and a median unit price of $432,000. This is an annual (Q2 2022 – Q2 2023) price softening of -6.7% for houses and 16.8% price growth for units. That said, on a quarterly basis (Q1 2023 – Q2 2023) median house and unit price grew 4.3% and 13.7% respectively. Thus, cash rate hikes did translate into the market, but consumer confidence has returned. In the past 12 months to Q1 2023 sales declined by -38.4% (houses) and -51.1% (units), thus a market undersupply. For those looking for a more affordable market, time is of the essence.
Average vendor discounts between Q2 2022 and Q2 2023 have tightened to a smaller discount of -2.7% for houses and widened to larger discount of -4.7% for units. Market conditions continue to favour buyers, as vendors are willing to accept below the first list price. That said average vendor discounts have stabilised in the past quarter, thus time is of the essence for buyers.
In June 2023, house rental yields in Broome (postcode 6725) were 7.2%, higher than Perth Metro (4.2%). Further, in the 12 months to Q2 2023 median house rental price increased by 46.7% to sit at 1,100 per week, alongside a 64.7% increase (to 28 rentals) in the number of houses rented. This suggests renters are willing to pay higher even without an undersupply in the market. The same pattern can be seen in the unit rental market, indicating a highly demanded market.
3-bedroom houses have provided investors with +11.1% rental growth annually, achieving a median rent of $500 per week.
Broome recorded a vacancy rate of 0.1% in June 2023, which is below Perth Metro’s 0.6% average. Vacancy rates in Broome have continued to decline in the past 12 months, indicating higher rental demand and quicker occupancy rates. These key indicators create a conducive and sustainable environment for investors, even if median house price growth have started to represent a recovery phase in the past quarter (Q1 2023 – Q2 2023).
