Local Residents Priced Out as Investors and Government Housing Dominate Broome’s Property Market
In northern Western Australia, many Broome locals are being priced out of their own property market as investors from the east coast purchase homes remotely and government-owned housing for employees occupies a significant share of available properties.
According to local real estate agent Tony Hutchison, investors now account for around 50% of property buyers in the remote tourist town.
“This creates added competition for locals, reducing the number of available homes,” Mr. Hutchison said. “Some investors are selling properties in Sydney or Melbourne and using the proceeds to buy multiple homes in Broome.”
Many investors are even buying properties over the phone without visiting them in person.
“It’s just an investment managed from behind a computer,” Mr. Hutchison added. “Since they’re Australian buyers, there’s no legislation restricting this practice.”
Soaring Prices and Limited Supply
Broome’s median property price has climbed 13.7% over the past year, with median rent reaching $1,050 as of May 2025, according to the Real Estate Institute of WA (REIWA).
REIWA president Suzanne Brown called the situation a “double-edged sword,” noting that while investors increase competition, they also boost housing supply, which helps stabilize rents.
“Investors help keep supply up, but eventually tenants want to own homes themselves and find themselves competing with these investors,” Ms. Brown said.
“Interstate buyers aren’t moving for lifestyle reasons — they’re attracted by rental returns.”
Government Housing Taking a Larger Share
In regional towns like Broome, government-provided employee housing under the Government Regional Officer Housing (GROH) scheme makes up a large portion of the market.
The Kimberley Development Commission noted that while GROH poses minimal risk in areas where it represents a small share of the housing stock, in regions like the Kimberley, its significant presence can crowd out private rentals.
As of May 31, there were 531 GROH properties within Broome Shire.
A spokesperson from the Department of Communities emphasized the importance of GROH in supporting regional services by ensuring essential workers have housing.
“The 2025–26 state budget includes nearly $104 million to add more than 100 new GROH homes across Western Australia, doubling the number of planned builds,” they said.
Without adequate housing, the region may struggle to attract essential workers, even as demand grows.
Local Competition Intensifies
Broome Shire president Chris Mitchell said locals and businesses often compete with the state government for rental properties.
“The state government probably controls about 80% of our private rental market, which makes it tough when they can outbid others to secure properties,” he said.
Mr. Mitchell acknowledged that investors are a permanent feature of the housing market but urged them to prioritize long-term rentals for local families instead of short-term holiday rentals like Airbnb.
“Residential areas should remain focused on residential living,” he said.
