Broome market stalling as investors show caution
Broome will need to see continued investment in mining and tourism to reignite demand for housing and vacant land, according to PRDnationwide.
PRDnationwide research analyst Angus McLean said Broome’s property market had been kept in good health over the past 10 years by fluctuating fortunes in the WA mining sector and a shortage of available dwellings to accommodate resource workers.
"A combination of high dwelling demand and the popularity of the area as a tourist destination has enabled Broome's property sector to remain buoyant," he said.
However, with a slowing in the market over the past few months, the town will need continued investment to continue the long-term trend of a healthy market.
Principal at PRDnationwide Broome Andrew Blackley said the market had slowed in the past three months after consistent sales figures since early 2010.
"The market has stalled a little, with homebuyers and investors showing caution," he said.
"Fewer enquiries can be attributed in part to the abandonment of key gas projects in the Kimberley region and recent highs in the Australian dollar that have seen tourists take advantage of cheaper overseas options for their holidays.
"Things are a little flat right now but we are encouraged that as the Australian dollar drifts lower, the local economy in Broome will find legs and the property sector will pick up again in 2014."
The town’s property market is affected by the seasonal trends of the tourism industry, with the popular tourist destination Cable Beach continuing to dominate sales in the area at 48 per cent of total transactions.