Broome records highest rent prices in regional WA

The Broome local government area has recorded the highest weekly median rent in regional WA, with residents forking out an average of $1150 a week as the North-West continues to top the list for regional rents.

Broome also recorded the highest median weekly rent growth of any local government area in regional WA — up 15 per cent in the past year and 101.8 per cent over five years, according to Domain’s June Quarter Rent Report.

Following Broome, the most expensive regional LGAs to rent houses were Karratha and Port Hedland.

The median weekly rent in Karratha’s median weekly rent rose 4.8 per cent over the past year to $1150 while Port Hedland had a 5.6 per cent increase to $950.

Domain’s chief of research and economics Dr Nicola Powell said although rents are still rising, the rate was starting to slow compared to recent years.

“We’ve seen it double in a five-year period, but I think that that growth is slowing, and our expectation is rents are likely to still rise, but not as fast as what they were,” she said.

“We have seen a slowdown in the rental growth compared to the past few years, but it is still hot. A 15 per cent increase is still a big jump over a 12-month period.

“Broome rentals are now over $1000 a week which is rubbing shoulders with the eastern suburbs of Sydney and is similar to a rental that you would get in Byron in New South Wales.”

She said there were two likely culprits for the continuing increase in Broome and other northwest towns.

“In Broome and the northwest WA a variety of things are happening,” Dr Powell said.

“I think it’s the resource build out and FIFO workers soaking up existing stock. I also think it reflects a tourism rebound as well for Broome and many investors will be lured to short term leases.

“My understanding is policy settings remain quite investor friendly, so there’s no necessary rent caps or land tax surcharges particularly with short term leases.”

The figures come as the national rental market is finally showing signs of stabilising after years of relentless growth.

“Cost-of-living pressures have reached a tipping point. Renters are maxed out and landlords are being forced to hold steady,” Dr Powell said.

However, WA continues to buck the trend. Perth house rents increased for the fourth consecutive quarter, rising 0.7 per cent — or $5 — to a record $700 per week.

For the first time, Perth now sits alongside Canberra as the second-most expensive city to rent a house, behind only Sydney.