Broomehill WA Property Investment

## 1. Investment Verdict Based on the data, I recommend a "Hold" strategy for existing investors in Broomehill, WA, with the single most important number being the 5-year Compound Annual Growth Rate (CAGR) of 5.4%/yr, which indicates moderate long-term growth potential.

## 2. Market Overview The median house price in Broomehill is approximately $261,000, pending peer validation. With a gross rental yield of 3.4%, this suggests a relatively stable market. The 3-year growth forecast of 4.9% indicates a moderate growth trend. However, the lack of data on days on market and 1-year price growth makes it challenging to determine the current market sentiment. For buyers, this stability may indicate a good time to enter the market, while sellers may need to be patient due to the moderate growth forecast.

## 3. Rental Market The vacancy rate in Broomehill is 3.0%, indicating a relatively stable rental market. The median weekly rent is $170/wk, which, combined with the median house price, results in a gross rental yield of 3.4%. The rental demand is rated as moderate, with an owner-occupier rate of 74%. This suggests that investors may face moderate competition for tenants, but the relatively low vacancy rate indicates a stable rental income stream.

## 4. Short-Term Rental Opportunity The median nightly rate for short-term rentals in Broomehill is $562/night, with an occupancy rate of 37%. This translates to an estimated annual revenue of approximately $76,000 (assuming 365 nights per year and 37% occupancy). Compared to the long-term rental market, the short-term rental market may offer higher revenue potential, but it also comes with higher management costs and risks. In this case, the long-term rental market may be a more stable option, given the moderate rental demand and relatively low vacancy rate.

## 5. Infrastructure & Growth Drivers The lack of major projects on file and the limited development pipeline may limit long-term capital growth potential. However, the presence of the Broomehill CBH station 0.7km away provides some infrastructure support. The stable market cycle and moderate rental demand also suggest that the suburb may be experiencing steady, albeit slow, growth. The key risk, as identified in the scorecard, is the distance from the CBD, which may limit long-term capital growth potential.

## 6. Bull Case If the current market conditions hold or improve, the upside scenario for Broomehill could be driven by the 3-year growth forecast of 4.9%. With a median house price of approximately $261,000, this could result in a potential price increase of around $12,700 over the next three years, assuming the growth forecast is realized. Additionally, if the rental yield increases, investors could see higher returns on their investment.

## 7. Risks The specific risks associated with investing in Broomehill include a vacancy risk of 3.0%, which is relatively low. However, the distance from the CBD may limit long-term capital growth potential, and the lack of major projects on file may indicate limited economic growth drivers. The supply pipeline is low, with price growth outpacing new supply, which could lead to increased competition for existing properties. The unemployment rate of 4.5% is relatively low, but it may still impact rental demand and property prices.

## 8. The Play For investors looking to enter the Broomehill market, I recommend targeting properties in the $250,000-$280,000 range, with a minimum yield target of 3.5%. Watch signals include changes in the rental demand rating, vacancy rate, and growth forecast. The recommended strategy is to hold existing properties and monitor market conditions closely, as the stable market cycle and moderate rental demand suggest a relatively low-risk investment environment.

Flood risk: not on record for this suburb in the state planning overlay. Order an independent flood certificate before commit. Bushfire risk: not on record for this suburb in the state planning overlay. Order an independent BAL (Bushfire Attack Level) assessment before commit. Heritage status is not on record — confirm with the council duty planner / a Section 10.7 (NSW) or equivalent certificate.

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