Tamworth Property Market Update 2nd Half of 2020
In Q3 2020, Tamworth recorded a median house price of $350,000, and a median unit price of $270,000. This represents annual (Q3 2019 – Q3 2020) median price growth of 2.9% for houses and 18.7% for units. Between Q3 2019 – Q3 2020 total sales increased, by 38.9% for houses (to 282 sales) and by 110.0% for units (to 21 sales). Median price growth and increased sales activity suggest real capital growth in the area, in contrast to general COVID-19 predictions. This indicates high market resilience in Tamworth, thus creating an ideal market for real estate transactions.
Average vendor discounts between Q3 2019 and Q3 2020 have tightened for houses, to -5.1%, while units have slightly widened, to -5.9%. Market conditions in Tamworth continue to favour buyers overall, as sellers are willing to negotiate below their initial listing price. Now is the time to enter the market.
In September 2020, house rental yields in Tamworth were recorded at 4.3%. In the 12 months to Q3 2020, the median house rental price has seen a very minor softening to sit at $340 per week, however average days on the market declined by -24.1% (to 22 days). Overall this suggests quite a resilient rental market in Tamworth throughout COVID-19.
4+ bedroom houses have provided investors with +2.5% rental growth annually, achieving a median rent of $410 per week.
Also in September 2020, Tamworth recorded a low vacancy rate of 1.4%, on-par with Tamworth LGA (1.3%) and well below Sydney Metro (3.5%). Vacancy rates in Tamworth remain well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, and continuing on a declining trend even amidst COVID-19 conditions. There is an ongoing healthy level of rental demand, and investors can be confident of a conducive investment environment in Tamworth.