The Broome property market is very much still a buyer’s market with many Owners seeking market appraisals in an environment where buyers have the choice of many properties to choose from and compare within their budget and description range. Buyers are predominantly compromised of owner/occupiers looking for vacant possession with only a limited number of investors showing any interest at all, even though today’s market values do show a very acceptable return on investment. Especially when compared with the low percentage returns evidenced in the capital cities.
Investors are wary of the election outcome and the influence a new government will have on property taxes and policies. If history is any indication the advisors may well have got it wrong again and investors may leave the housing market in droves, as they did the last time the rules were changed, and the incentives had to be reintroduced to provide a supply of rental housing by the private sector.
What we do know is that the state government are trying to use market rent reviews to lower residential rents at every opportunity, and as the dominant occupier in the market they have the ability to create their own evidence when Landlords that are under stress agree to lower than market values without dispute. On the other hand they are also requesting newer family homes so as to improve their standards; however with the lower rents they are looking to achieve they will find it difficult to source investors willing to provide new homes for their occupants.
Historically the market moves in cycles and there is nothing more evident than that we have been experiencing the lower trend in the cycle for a prolonged period so the future looks bright.
We are already seeing the lowest vacancy rate in several years with our current vacancy rate at 1.98% compared to this same week in 2018 when the vacancy rate was 3.53%. The number of properties leased in April 2019 was 39 properties - a near record for rental leasing from our agency. The selection of properties for lease is now greatly reduced however always a word of caution as our busy months don’t last long as after July the leasing enquiry becomes reduced compared to the enquiry at the beginning of the tourist year.
If you would like any further assistance in buying, selling, renting or property management please get in touch with our team here