Green shoots return in property market

The housing market in Broome is showing positive signs of revival as rental vacancy rates dip to their lowest point in five years.

REIWA Kimberley branch chairman Tony Hutchinson confirmed the local property market had been firming over the last six months with confidence returning.

Mr Hutchinson said property stocks for sale and lease had tightened with the rental vacancy factor falling below 2 per cent for the first time since 2013.

He said the market could tighten further once Sheffield Resources gained final approval for its Thunderbird mineral sands mine between Broome and Derby.

“We have generally found that properties are leasing very quickly with little stock available,” Mr Hutchinson said.

“There has been a lack of construction of new homes which has also impacted the supply. Buyers are starting to make quicker decisions as a fear of paying too much is replaced by fear of missing out.”

Fellow Broome real estate agent Allan Griffiths said sales were particularly active at the lower end of the market with stock running out quickly.

Mr Griffiths said the activity should force buyers to lift their sights or reconsider home and land packages by builders as values for established properties climb.

“Most buyers are owner-occupiers; however, we find it hard to understand why investors are not active as good properties are still returning about 5 per cent gross returns as compared to the major cities where it is generally less than 2 per cent,” he said.

He said property owners were now starting to see better returns after several years of little or no movement.