Tumut Property Market Update 2nd Half of 2020
In Q2 2020, Tumut recorded a median house price of $260,000, and a median vacant land price of $75,000. This represents annual (Q2 2019 – Q2 2020) median price growth of 5.6% for land and a price softening of -6.5% for houses. Between Q2 2019 – Q2 2020 total sales slowed, by -5.5% for houses (to 55 sales) and by -55.6% for land to 4 sales. These conditions are expected due to current COVID-19 limitations. With limited competing stock in the market, buyers must act quickly in Tumut to capitalise on its affordability.
Average vendor discounts between Q2 2019 and Q2 2020 have tightened for houses, to -4.7%. Market conditions in Tumut continue to favour buyers overall, as sellers are willing to negotiate below their initial listing price. Now is the time to enter the market.
Over the past 12 months, house rental yields in Tumut remained steady, to sit at 4.8% in June 2020. This suggests the house rental market is in a healthy position, particularly when combined with the -3.9% decline in average days to rent, to 19 days in the 12 months to Q2 2020.
4+ bedroom houses provided investors with +13.5% rental growth annually, achieving a median rent of $420 per week.
Tumut recorded an extremely tight vacancy rate of 0.7% in June 2020. Vacancy rates in Tumut has shown a declining trend in the past three years, and an even sharper decline since December 2019. This is quite unexpected given the rental market expectations due to COVID-19. Vacancy rates in Tumut is well below Sydney Metro’s 3.8% average. This confirms there is a healthy rental demand in Tumut and a conducive environment for investment.