Broome Property Market Update 2nd Half 2024
Broome offers a unique blend of stunning natural beauty with its iconic Cable Beach and rich cultural heritage, providing a vibrant and diverse community. Its tropical climate and relaxed lifestyle make it an ideal place for those seeking a serene and picturesque living environment.
Property Trends
In Q2 2024, Broome recorded a median house price of $715,000, and a median unit price of $480,000. This represents an annual (Q2 2023 – Q2 2024) median price growth of 9.8% for houses and 6.9% for units. During this time total sales decreased, by -41.7% (to 42 sales) for houses and by -28.6% (to 15 sales) for units. Price growth alongside less sales suggests a market undersupply, which was also evident in the past 6 months to Q2 2024. Now is an ideal time for homeowners to capitalise on their investments. With no new ready-to-sell stock planned to commence construction buyers need to act fast, before prices grow even higher.
Vendor Discounts
Average vendor discounts between Q2 2023 and Q2 2024 have tightened to lesser discounts of -0.5% for houses and -0.1% for units. Whilst buyers are still benefiting from discounts, as final sale prices are still below the first list price, this is very minimal compared to 12 months prior. The market is shifting towards a seller’s market, and with very little new housing supply the likelihood of this is high.
Rental Market & Growth
House rental yields in Broome were 8.2% in June 2024, much higher than Perth Metro (4.0%). Median house rental price was $1,000 in Q2 2024, which represents stable growth on a 12 months basis, but an 11.1% growth on a 6-months basis. The number of houses rented increased by 23.3% (to 37 rentals in Q2 2024), which suggests a highly demanded rental market. The unit rental market is undersupplied, with a 12.7% increase in median unit rental price (to $620 per week in Q2 2024) and a -43.8% in the number of units rented.
4+ bedroom houses have provided investors with +13.0% rental growth annually, achieving a median rent of $1,300 per week.
Vacancy Rates & Property Investment
Broome recorded a vacancy rate of 0.2% in June 2024, well below Perth Metro’s 0.8% average. Vacancy rates in Broome have held relatively steady over the past 12 months, suggesting stability in its rental demand. Further, a 0.2% vacancy rate is significantly below that of the Real Estate Institute of Australia’s ‘Healthy’ Benchmark of 3.0%, indicating quicker occupancy of rental properties. This suggests a conducive environment for investment.
