- Posted By Sales Office
Things look like they are improving at last in the Broome rental market. For the past few years Investors have had it tough in a highly competitive rental market with rental prices down from as much as $100 per week. Broome was not alone with this downward movement as the pattern followed a similar trajectory to many other areas of WA.
We are therefore pleased to see Broome’s vacancy rate is the lowest it has been for a number of years. A few years ago we had a vacancy rate of in excess of 8% but now Broome has a steady 3% and heading lower. There has been very little home-building going on in Broome during this lull so there will a shortfall of rentals available.
Other encouraging indicators include our median rent price holding steady at $470 per week ($100 per week more than Perth’s median rent of $350 per week) as well as the rate of decline has slowed. There is less movement of vacant properties coming on-line being advertised. Currently we are at the height of our tourism season so it stands to reason the demand for rentals is high.
Investors need to be competitive and smart as Broome’s rental market is seasonal. The number of days on market has decreased from 88 days in January to 45 days this month. The greatest demand for houses is from mid-January when families are on the move and units from March/April onwards but once we hit late October and the weather starts heating up there is a section of the market who migrate southward so it is all about timing and a good agent to provide you with the right advice.
Properties with a swimming pool in the hottest months are in high demand. Provided your rental property is marketed competitively, you have a very good chance of securing a tenant at any time of the year.
Some tenants have not caught up with the market and are missing out. The market is no longer in decline and demand is increasing again. The rental pendulum has started to swing back in favour of landlords. The price for a 3 x 2 bedroom house can range from $500 - $600 per week depending on condition, location and if there is a swimming pool.
It pays to ask for a rental appraisal from an agent who has a specialised leasing officer and who leases more than 50% of the Broome market. Call Charmaine Snow, Manager of Property Services if you would like to know more (08) 9192 2000.