Broome Property Market Update 1st Half 2025
Broome is a picturesque town located in the stunning Kimberley region of Western Australia and is a costal gem known for its breathtaking natural beauty and rich history. With its unique blend of cultures vibrant community and warm tropical laid-back atmosphere, Broome offers a fantastic place to live.
Property Trends
In Q4 2024, Broome recorded a median house price of $800,000, and a median unit price of $430,000. This represents an annual (Q4 2023 – Q4 2024) price growth of 18.5% for houses and 8.9% for units. During this time, sales declined, by -38.0% for houses (to 57 sales in Q4 2024) and by -40.6% for units (to 19 sales in Q4 2024). Price growth and less sales suggests an undersupply in the market, for both houses and units. This has created a buffer against higher interest rates; hence the price growth. With prices continuing to rise, now is an ideal time for owners to capitalise on their investments.
Project Development
Broome will see approximately $17.7M of new projects commencing construction in 2025. 154 Frederick Street Health & Wellness & Child Care Centre (Mixed-Use) and the Broome Boating Facility (Infrastructure) are two main projects in 2025. At present there is very limited residential project planned, thus very few new housing stock. This will cause a further undersupply in the housing market and push prices higher.
Rental Market & Growth
House rental yields in Broome was 8.6% in December, above Broome LGA (7.3%) and substantially above Perth Metro (3.9%). This was paired with a 16.7% increase in median rent price in the past 12 months to Q4 2024, at $1,050 per week. The number of houses rented also increased, by 16.7%, to 56 rentals in Q4 2024, which suggests a highly demanded market. Median unit rent price rose by 12.5% to $675, but the number of units rented decreased, by -24.1% to 22 units in Q4 2024. This suggests an undersupplied unit rental market. Overall, there is a need for more investors in the Broome market.
Vacancy Rates & Property Investment
Broome recorded a vacancy rate of 1.0% in December 2024, slightly below Broome LGA’s 1.4% but above Perth's Metro’s 0.7% average. Vacancy rates in Broome have generally trended upwards in the past 12 months, due to investors returning to market as interest rates stabilised. That said, a 1.0% vacancy rate is still significantly below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, suggesting quicker occupancy of rental homes in Broome. This suggests a conducive and attractive investment environment, even with higher entry prices in the past 12 months to Q4 2024.
