Broome house prices return to 2008 level

House prices in Broome have stagnated to the same level they were five years ago, with an easing of upward pressure on rents.

A figure released by the Real Estate Institute of WA shows the median house price was $670,000 - mirroring the 2008 market.

From August last year to this September, more blocks of land were sold in the town than were houses.

The institute said 123 dwellings were purchased compared to 153 blocks and 38 units.

REIWA Broome branch chairman Tony Hutchinson said the market had been slow after the cancellation of the James Price Point gas hub but had now returned to a normal growth pattern.

Mr Hutchinson said supply of land has increased significantly due to housing estate Broome North, which was helping to provide affordable housing.

He said there was a 93 per cent increase in rental property supply, resulting in rents dropping generally about 18 per cent.

"This is a result of the various influences such as the downgrading of the Broome prison, with staff transferred to Derby, and the departure of personnel from businesses closing down," he said.

Mr Hutchinson said the State Government was closely watching its rent spend and was been handing back homes without renewing leases.

"This phase of the market will change in time and reflects a general lack of confidence," he said.

"I'm thinking it's going to be a good time to buy if you can find the right property with established homes at or below replacement value."

First National Real Estate principal Allan Griffiths said the market had been adjusting to sustainable levels after a lengthy period of short supply.

Mr Griffiths said this was apparent up to the release of the Januburu Six Seasons Estate and the influx of contractors associated with preliminary resource projects.

"It is understandable that land sales predominate, especially in Broome North as the land is affordable and new-home building prices are very competitive," he said.

"This is often seen by buyers as better value however there is a great deal of additional value included in established homes that should be assessed when making the comparison."

Derby recorded slight positive growth with the median house price increasing 1.4 per cent to $547,500.

Mr Hutchinson said there had been a sharp increase in the number of properties for sale.

Twenty-two houses, one unit and five blocks of land were sold in the year to September in Derby.