Tamworth Market Update 1st Half of 2020
In Q1 2020, Tamworth recorded a median house price of $380,000, and a median unit price of $292,250. This represents annual (Q1 2019 – Q1 2020) median price growth of 8.6% for houses and a of 25.7% for units. Between Q1 2019 – Q1 2020 total sales increased in both markets, by 0.6% for houses (to 181 sales) and by 7.7% for units (to 14 sales). Limited unit sales make this data volatile, however with both markets showing positive capital growth and increasing demand, now is an ideal time to transact in Tamworth.
Average vendor discounts between Q1 2019 and Q1 2020 have tightened for both property types, to -5.0% for houses and -1.4% for units. This presents a unique opportunity for both buyers and sellers. Sellers can now achieve final sale prices closer to their first list price, while buyers can still benefit from a discount.
Over the past 12 months, house rental yields in Tamworth increased sharply to reach 5.8% in April 2020. This suggests the house rental market is in quite a healthy position, particularly when compared with the current returns of Sydney Metro (with an average house yield of just 2.5% in April 2020).
2 bedroom houses have provided investors with +3.7% rental growth annually, achieving a median rent of $350 per week.
Tamworth recorded a vacancy rate of 2.9% in April 2020. This is quite a positive position for the market, sitting just below the Real Estate Institute of Australia’s 3.0% healthy benchmark. Tamworth’s vacancy rate is also well below Sydney Metro’s vacancy rate of 3.9% (as of April 2020), thus with a lower median sale price compared to Sydney, Tamworth is presented as a stable and affordable investment opportunity.