Broome WA Property Investment

SUBURB INVESTMENT BRIEF — Broome, WA 6725 LGA: Generated: 2026-04-11 | Estait AI Analysis

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EXECUTIVE SUMMARY

Overall Score: 58/100 — Hold

Broome rates as "Hold" due to weak growth indicators, attractive 9.0% gross yield.

Broome sits in a trough phase of the property cycle with an overall investment score of 58 out of 100. This assessment reflects the suburb's growth trajectory, rental market health, economic resilience, and infrastructure positioning within the WA market.

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MARKET POSITION

Median house price: $641,000 Median unit price: $135,592 Median weekly rent: $1,108/week Days on market: 29 days (stable)

Broome offers an accessible entry point in the WA property landscape. Properties are spending an average of 29 days on market, suggesting balanced supply-demand dynamics.

Comparable suburbs: - Alexander Heights (WA): Median $825,000, yield 4.7%, 1yr growth 13.2% - Alkimos (WA): Median $755,000, yield 4.8%, 1yr growth 12.7% - Armadale (WA): Median $610,000, yield 5.1%, 1yr growth 13.0%

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RENTAL MARKET

Gross rental yield: 9.0% Net rental yield: 7.5% Vacancy rate: 2.7% (worsening) Rental demand: Moderate

The rental market in Broome is characterised by moderate demand with a vacancy rate of 2.7%, which is near the national average of approximately 2.5%. Vacancy is trending worsening, warranting careful monitoring.

Short-term rental data indicates a median nightly rate of $165 with an estimated occupancy of 66%. This translates to an estimated annual STR revenue of $39,748 before expenses. Long-term rental at $57,616/year may offer comparable or better risk-adjusted returns given lower management overhead.

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GROWTH OUTLOOK

Population growth (5yr): 0.4% Price CAGR (5yr): -10.5% Capital growth (3yr forecast): -11.8% Supply pipeline: Moderate

Development activity consistent with long-term averages

Infrastructure & transport: - No major infrastructure projects identified. Transport: Well-connected inner-city location

If Broome maintains 3%+ annual growth and vacancy stays below 1.9%, median prices could reach $737,150 within 3 years with yields compressing slightly as capital values rise.

At current trajectory (0.4% growth, 2.7% vacancy, 9.0% yield), Broome offers steady returns with moderate capital appreciation in line with broader market trends.

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RISK ASSESSMENT

Market cycle position: Trough Vacancy risk: Moderate

Key risks: - Negative price growth suggests a softening market

Interest rate sensitivity (est. monthly repayment on median house price, 80% LVR): - At 7%: $3,412/month - At 8%: $3,763/month - At 9%: $4,126/month

A market correction or interest rate shock could see prices in Broome pull back 10-15% from $641,000, with vacancy rising to 4.9% and rental yields softening as tenants gain leverage.

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LIVEABILITY

Affluence rating: Above Average Safety score: 8.3/10 Walkability: 90/100 Owner-occupied: 33%

Schools: - Broome Public School (primary): Rating 10.0/10 - Broome East Public School (primary): Rating 9.5/10 - Broome West Public School (primary): Rating 9.0/10 - Broome High School (secondary): Rating 10.0/10

Broome offers a balanced lifestyle proposition with excellent safety ratings and strong walkability. The 33% owner-occupier rate indicates a predominantly rental market.

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RECOMMENDATION — HOLD

Broome offers balanced fundamentals but does not present an urgent buying signal. The market is in a trough phase with moderate vacancy risk.

Conditions: Monitor vacancy trends and price movements over the next 6-12 months. Only enter if a property can be acquired at or below median pricing with yields exceeding 9.5%.

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KEY ACTION ITEMS

1. Shortlist properties in the $576,900 - 705,100 range for deeper analysis 2. Verify current vacancy and rental rates with local property managers 3. Assess STR regulatory environment with local council 4. Model cash flow at 7%+ interest rates before committing 5. Engage a buyer's agent with Broome market expertise for off-market opportunities

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Disclaimer: This analysis is for informational purposes only and does not constitute financial, legal, or investment advice. Seek professional advice before making investment decisions.