Broome locals left in lurch as homes snapped up by east coast investors and state government
Investors make up around 50 per cent of property buyers in the remote tourist town, according to local real estate agent Tony Hutchison.
He said this shift had contributed to local buyers being unable to afford properties in their hometown.
"It's something locals have to compete with … there's more demand and fewer properties available for our local folk," Mr Hutchinson said.
"[Investors] may have sold an investment property in Sydney and Melbourne, and could probably afford to buy two properties up here with that sort of money."
Mr Hutchinson said some investors bought properties over the phone, without plans to step foot in them.
"It's a tricky one because how do you control something like that? It's not like they're foreign buyers; they're all Australian.
"There's no legislation that restricts it."
Median property prices in Broome have gone up by 13.7 per cent in the past 12 months, according to the Real Estate Institute of WA (REIWA).
As of May 2025, the median rent in Broome is $1,050.
REIWA president Suzanne Brown said it was a "double-edged sword" because while investors added more competition, they also encouraged supply, which helped keep "rents reasonable".
"It is good that we have investors because it helps keep supply high, but eventually tenants want their own home and are competing with investors," she said.
"Interstate investors are definitely not interested in the lifestyle that obviously the locals of the region are.
"It's more about the yield — it's a very attractive rental market for people to invest in."
In remote towns like Broome, Government Regional Officer Housing (GROH) properties make up a sizeable proportion of the market.
"In areas where GROH is a negligible proportion of the overall housing mix, the risk of crowding out private rentals is small," the Kimberley Development Commission's latest housing report said.
"But that risk increases in a place like the Kimberley, where GROH and other employer-provided housing is a far higher proportion of the market."
As of May 31, there were 531 GROH properties in the Shire of Broome.
A Department of Communities spokesperson said the GROH program ensured communities had access to key services by providing employee housing.
"The 2025–26 state budget includes nearly $104 million in funding to deliver over 100 more GROH homes across the state," they said.
"The investment doubles the current number of GROH homes to be built in Western Australia."
Without suitable housing, employees may be less incentivised to work in places like Broome, amid soaring demand for essential workers.
Broome shire president Chris Mitchell said locals and businesses were competing with the state government for rental properties.
"[The state government] has probably got around 80 per cent of our private rental market, which really makes it hard when they will pay a bit more to make sure they get the property," he said.
Mr Mitchell also said investors were an inevitable competitor in the Broome housing market.
"If someone's buying one for investment, we'd really prefer them renting out to a local family rather than trying to fill it up as an Airbnb," he said.
"Realistically, houses in residential areas are for residential living."
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